Cryptocurrency market cap: 7 ways to start investing in cryptocurrency
If you have been keeping up with the cryptocurrency space recently, you would know that one of the most talked about topics is cryptocurrency market cap. After all, it is a metric that determines how big a cryptocurrency project is.
But if you are new to the world of cryptocurrencies, then you might be wondering what market cap is and why it matters so much.
In this article, we will look at the definition of market cap and explain why it matters so much for cryptocurrency investors.
Cryptocurrencies are one of the hottest investments around. For many people, the idea of investing in cryptocurrency may seem intimidating or hard to understand, but there are several ways that you can invest in cryptocurrencies.
You may be familiar with Bitcoin and Ethereum, but there are over 4,000 different types of cryptocurrencies that you can invest in today. Here are 7 different ways that you can start investing in cryptocurrencies:
1. Buy a Cryptocurrency on an Exchange
2. Buy a Cryptocurrency Through a Brokerage Account
3. Purchase a Cryptocurrency Mining Machine
4. Invest in Crypto ETFs and Index Funds
5. Start Earning Digital Currency as a Freelancer
6. Participate in an Initial Coin Offering (ICO)
7. Invest in Blockchain Technology Companies
Bitcoin and other cryptocurrencies are an up and coming topic of interest. It can be hard to determine which cryptocurrency is best to invest in and how to go about investing in cryptocurrency. If you want to learn more about investing in cryptocurrency, the following article will break down the steps on how to get started investing in cryptocurrency.
This article will provide you with 7 tips on how to start investing in cryptocurrency:
Choose a Method of Acquiring Crypto
Choose a Wallet
Choose Exchange Platforms
Keep Track of Your Investments
Do Your Research and Exercise Caution
Continue to Keep Up With Trends
Bitcoin is the world’s first cryptocurrency. The price of a single Bitcoin has risen nearly 1,700% in 2017, making many people fear that the market is in bubble territory. Bitcoin fans say to those people: You ain’t seen nothing yet.
The $116 billion cryptocurrency market — which includes hundreds of small digital tokens along with Bitcoin and Ether — has been on a tear over the past year. If believers are right, there’s still plenty of room for the market to grow. And although it’s impossible to know for sure where the market will go next, here are seven ways to start investing in this new asset class.
1. Buy Bitcoins (and maybe Ether) directly from an exchange.
2. Buy Bitcoins indirectly by investing in companies that have them or that use blockchain technology (explained below).
3. Use a broker like Coinbase to buy and sell cryptocurrencies like Bitcoin and Ether.* [Editor’s note: On Feb. 6, 2018, Coinbase announced support for buying and selling Ethereum’s currency, Ether.]
4. Trade cryptocurrencies with a forex broker like AvaTrade or Plus500.* [Editor’s note: On Jan. 9, 2018, several major brokers stopped allowing trading of certain cryptocurrencies on their platforms due to volatility.]
1. Buy Cryptocurrency Directly
The simplest way to invest in cryptocurrency is to simply buy some. There are plenty of established brokers and exchanges that allow you to purchase Bitcoin, Litecoin and others directly with fiat currency (i.e. USD) or another cryptocurrency. The downside to this method is that it comes with high fees, which can cut into your profits significantly.
2. Trade for Cryptocurrency on an Exchange
If you prefer a more hands-on approach, there are plenty of trading platforms available that allow you to buy into a cryptocurrency market at the current value and then sell your holdings later when the price increases. This method takes more skill and knowledge than simply buying some coin and holding onto it, but it has greater potential rewards as well.
3. Accept Cryptocurrencies as Payment for Products/Services You Offer
If you run a business of any kind, accepting cryptocurrency as payment is an excellent way to invest in the future without having to spend money directly. Simply set up your accounts so that customers can pay in Bitcoin, Litecoin and other coins, and then stash them away for later use. Once again, this method comes with fees attached, but they’re usually fairly low when compared against other investment
Buying cryptocurrency is very much early-stage investing, and investors should expect venture-capital-like outcomes in which the vast majority of crypto projects fail and become worthless. Only a small number of future winners will emerge from the crowd. Those who succeed will have a chance to enjoy wealth gains that are multiples of their original investments.
There are 7 ways you can invest in cryptocurrencies:
1. Buy crypto coins directly using a credit card or bank transfer. This is the most newbie-friendly way to invest in cryptocurrency.
2. Buy crypto coins through an exchange or through a broker-dealer. The process for buying coins via an exchange varies from one platform to another, but the principle is the same for all exchange-based services. You need to create an account and verify your identity before you can make any transactions (i.e., buying, selling, depositing or withdrawing). Examples of such exchanges are Coinbase, Kraken and Gemini.
3. Buy crypto coins with fiat currency (i.e., US dollars) on an exchange that supports fiat transactions (e.g., BTC Markets). Currently, there aren’t many exchanges that enable this type of trading because they have to go through additional regulatory hoops as a result of anti-money laundering
How to Invest in Bitcoin
One of the most frequently asked questions we at the Merkle get, is how to invest in Bitcoin. There are many different ways to go about this, but we will focus on the easiest and most convenient way for beginners.
When it comes to getting started with investing in cryptocurrencies, there are two main options. The first option is to do your own research and make all of the trading decisions yourself. This option is widely favored by people who have a deep understanding of how Bitcoin markets work. However, there is also another option which gives people the chance to invest in Bitcoin without having to worry about all of the technical details. This is done through companies such as Yield Coin, which offers all of these benefits and more.
For those looking for a more detailed explanation, here is a step-by-step guide:
1. Create an account on coinbase using your email and password.
2. After you sign up, you will be given a unique referral link that you can share with friends and family to earn free Bitcoin! (You can skip this if you don’t want free Bitcoins).
3. Next you need to enter your credit card information (this can be done later). Once you