How to Start Investing in Cryptocurrency
Bitcoin and cryptocurrencies are hotter than ever, and investors are just getting started. Here’s what you need to know about investing in cryptocurrency.
The price of Bitcoin jumped from 216 dollars in 2015 to around 697 dollars in 2016 and 7000 dollars in 2017. This increase has attracted the attention of many people thinking of investing in cryptocurrency.
As a new sector of the technology industry, cryptocurrency has emerged as an exciting way to exchange digital information. There are few regulations to this decentralized network and the price fluctuations can be significant.
This provides a great opportunity for investors (or speculators?) to buy and sell cryptocurrency such as Bitcoin. But there are things you need to know before getting started.
How Investing in Cryptocurrency Could Be Advantageous
Before you decide to invest, you should know how this type of trading or investing will benefit you. With any investment, there is some risk involved, so it’s good to know what you stand to gain before you get started.
The first and most desirable benefit is an increase in your net worth. The value loss of most other currencies is rather large due to inflation and low-interest rates. Central banks around the world printing money like crazy doesn’t help either. That’s why many people have turned to cryptocurrencies like Bitcoin as a more profitable alternative.
Another benefit is the flexibility in the technology. It provides the opportunity to use the digital currency anywhere in the world.
The third benefit is the consistent trend of rising prices. Since Bitcoin formed in 2008, a surge in the price over the years has been quite helpful to people investing in this digital currency.
However, it would be stupid to just jump in. As with any investments you make… study it.
Take note here: This is NOT investing advice!
How to Start Investing
If you’ve decided to get into this market, there are some things you need to know before getting started. Jumping in head-first without doing research could be costly. Always do your own research.
First, you need to decide which type of cryptocurrency you will be investing in. There are over a thousand, so you’ll need to research which ones are doing well at the moment. Bitcoin is quite popular and has a great track record of increasing value.
You’ll then need to decide how much you want to invest and set that money aside. You’ll be waiting for the right time to invest, so this money needs to be ready to go when the price is right.
The next step will be setting up your cryptocurrency wallet. This wallet will offer an address with which you’ll receive the crypto coins you buy. There are different types, so it’s a good idea to look at wallet reviews to see what’s working for other investors.
Now it’s time to join a cryptocurrency exchange. This is where you’ll be doing the actual trading. Again, there are many exchanges out there, so do your research before choosing one.
Once you decide on an exchange you can start buying crypto coins. Most exchanges will give you information on how to do this. They will usually offer support to educate you on the process.
Once you’ve bought your first coins, you’ll need to move them to your wallet for secure storage. The process of moving your coins in and out of your wallet to buy and sell will be ongoing.
Investing for the Future
Like any trading opportunities, there is a learning curve for investing in cryptocurrency. This is just the beginning, but you will soon learn what approach works best for you.
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