10 Tips: Informative Beginner’s Guide to Investing in Cryptocurrency

Beginner's Guide to Investing in Cryptocurrency

An Informative Beginner’s Guide to Investing in Cryptocurrency

What is Cryptocurrency?

Cryptocurrency is a digital currency that uses encryption techniques to regulate the generation of units of currency and verify the transfer of funds.

Are you bullish or bearish on crypto? Depending on who you ask, you’ll get a whole slew of responses. Some analysts believe that crypto is in the early stages of an upward trend.

With more and more investors hopping on the crypto bandwagon, why not you?

Investing in cryptocurrency is a new and exciting way to enter the market. This new asset class is so unique with its decentralized properties.

If you are new to the crypto space, do not fret, we are here to help. We have created a few things to keep in mind before you seek out crypto investment opportunities. Keep reading to get the inside scoop.

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In the past few years, cryptocurrencies have been gaining popularity as an investment vehicle.

Investing in cryptocurrency is a complicated process that requires a lot of research and due diligence on behalf of the investor.

Why Should I Invest in Cryptocurrency?

There are many reasons why you should invest in cryptocurrency. The first reason is that it has a lot of growth potential and it’s one of the fastest-growing markets in the world right now. Cryptocurrency also has a lot of volatility and the market is still new so there will be plenty of opportunities to make money.

Cryptocurrency investment is not for everyone and it does come with some risks, but if you take your time to learn about it then you can minimize those risks.

The Basics of Cryptocurrency Investing

In the past few years, cryptocurrencies have become a popular investment for many people. You may have heard about Bitcoin or Ethereum, but there are many more cryptocurrencies that you can invest in. In this article, we will discuss the basics of cryptocurrency investing.

How to Buy Bitcoin with Credit Card?

There are two ways you can buy bitcoin with your credit card: through an online exchange, or by using your credit card at an ATM.

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Cryptocurrency Wallet Setup Basics

How Long Does it Take for Most Coins to Show Returns?

It is difficult to predict the time it will take for a coin to show returns. One of the factors that affects the return on investment is the market capitalization of a coin.

The more popular a coin, the more likely it is that it will see an increase in value.

What is the difference between Bitcoin and Ethereum?

The major difference between Bitcoin and Ethereum is that Bitcoin is a cryptocurrency and Ethereum is a platform for decentralized applications.

Bitcoin can be used to transfer money from one person to another, while Ethereum can be used to create smart contracts.

Which cryptocurrencies should you be looking at now?

Cryptocurrencies are on the rise and it is important to know which ones are worth your time.

Bitcoin is still the most popular cryptocurrency, but there are many other altcoins that have been on the rise recently. It is important to keep up with these new developments in the crypto world.

The top 10 cryptocurrencies today are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Cardano, NEM, NEO, IOTA and EOS.

Multiple Egg Baskets

Sometimes the best advice is tried and true. Before you start investing in cryptocurrency, you’ll want to decide how you want the pie to look when it’s in your portfolio. How big or small do you want this crypto asset class to be after all?

The crypto landscape can be a volatile space. This is why we highly recommend diversifying your portfolio to reduce your risk and losing money.

When you buy crypto, buy multiple. With so many eggs, if one “tanks”, you still have others you can count on!

It’s okay to start with small amounts first since many cryptos are expensive. For example, you don’t have to buy 1 bitcoin. You can buy tiny bits first.

Which Cryptos?

With thousands of cryptocurrencies on the market, it can be overwhelming. It’s best to not get caught up in things like hype, FOMO (fear of missing out), or FUD (fear, uncertainty, doubt).

Once Bitcoin popped onto the scene and became popular, programmers worldwide decided to create their own cryptocurrencies too. These altcoins allowed people to “feel the magic” of Bitcoin by investing in crypto inexpensively.

A big part of investing in cryptocurrency is research. If you stick around long enough, you’ll hear the mantra do your own research a lot. What this means is to read the crypto’s white paper, head to their site, look at the team and investors, head to Crypto Twitter, etc.

What is an ICO?

An ICO is a new form of crowdfunding and some would say it is the future of fundraising. It stands for Initial Coin Offering and it has been used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.

See also
7 Dangerous Cryptocurrency Investment mistakes to Avoid in 2021

This form of funding has been around since 2013 but it wasn’t until this year that we saw a significant increase in the number of ICOs.

The cryptocurrency market is booming and this seems to be the best way for startups to get funding quickly, easily, and with relatively low risk.

Mining for Bitcoin and Other Coins

Bitcoin mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. This ledger of past transactions is called the blockchain.

The Bitcoin mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle.

The participant who first solves the puzzle gets to place the next block on the blockchain and claim the rewards.

The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as the newly released bitcoin.

Bitcoin miners need high-powered computers that can run 24 hours a day for weeks at a time in order to generate enough bitcoins to make any real money.

These are expensive machines that take up lots of space and require constant cooling or they will overheat and shut down for extended periods of time.

How to Store Your Cryptocurrency Safely

A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchains to enable users to send and receive digital currency and monitor their balance.

The following are the different types of wallets:

 

– Online wallet: this is a web-based wallet where you can store your cryptocurrency. It is connected to the Internet, which means that it can be accessed from anywhere.

However, it can be hacked easily because it is online.

– Mobile wallets: this is an app on your phone where you can store your cryptocurrency.

It has all the features of an online wallet but it cannot be hacked as easily because you have to have access to your phone in order for someone else to hack into your account.

– Hardware wallets:  Hardware wallets are a type of cryptocurrency wallet that stores your private key. They are usually physical devices, but they can also be software applications.

The main advantage of hardware wallets is that they offer more security than other types of wallets. This is because they store your private key offline, which means it cannot be hacked remotely.

There are different types of hardware wallets available on the market and each has its own pros and cons.

However, one thing that all hardware wallets have in common is that they generate the public and private keys on the device itself rather than on another machine or online like most software wallets do.

See also
7 Tips for Investing in Bitcoin

Have a Go-to Exchange

With so many cryptocurrencies out there, you’ll need to decide where you’ll buy and sell crypto, right? An exchange is where you’ll do just that!

You can think of them as an e-marketplace that links buyers and sellers together with the hopes of making gains.

There are plenty of exchanges to choose from, some are more centralized while others are decentralized in nature. You can do many from your smartphone or computer.

If you’re out and about, we recommend heading to the best Bitcoin ATM. From there, you can buy crypto with cash.

Safe Storage

Speaking of exchanges, you never want to keep your crypto on there. This is very unsafe and insecure as it opens you up to hackers.

Remember the mantra, not your keys, not your crypto. Write down your private keys and store them in a safe place such as a safe, lockbox, or vault.

This means that you’ll want a non-custodial wallet. You can find many to download on your smartphone or computer.

Alternatively, you could purchase a hardware wallet. This is a more secure option as it is stored offline.

Investing in Cryptocurrency Starts With You

Remember, investing in cryptocurrency starts with you. No one is there to save you if something goes wrong. This is why it is imperative to do your own research and follow best practices.

With anything, there will be a learning curve. Take your time when learning crypto, and it will pay off for you in the end. Only do things you are comfortable with.

To stay in the loop of all things crypto, we advise you to check out our blog ASAP.

 

Finally: Which Investing Strategy is Best For You?

The conclusion is that there are many different investment strategies to choose from. There are some that are more complex and risky, but they also have a higher potential payoff. There are also some that are less complex and less risky, but they also don’t have as much potential for a high return on investment.

It all depends on your risk tolerance and your goals in investing in the future.

Conclusion

We hope you enjoyed this article… What are your thoughts on The Informative Beginner’s Guide to Investing in Cryptocurrency?

Please feel free to share with us in the comments section below.

 

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