The good reason to invest in cryptocurrency is the same as the good reason to buy a house or a car or an iPhone: because you want stuff. If you want a house, you like the house and you trust the seller; if you want an iPhone, you like them and you trust the maker. But with crypto there is some uncertainty about whether it will ever be widely used, so you have to take some risk of not getting your money back.
It’s probably true that the most important way to get rich is to start a company that changes the world, but it’s also true that not many people have the resources for that. So if you can get wealthy without starting a company, by investing in other companies, then go for it. If you are interested in startups and technology, there are many more solid investments than crypto — or at least they are far more liquid.
I think crypto should be given a chance as part of a diversified portfolio; I think we should be open-minded about how well this sort of thing works out.
The most common reason people give for not investing in cryptocurrencies is that they don’t think they will make money on them. And I agree: I don’t think you’ll make much money if all you do is buy crypto and day trade it. You’ll have to have a pretty deep understanding of the technology behind cryptocurrencies to do that well, and not just a superficial understanding; there are a lot of moving parts to this stuff.
But I would also say that’s a pretty good reason to invest in cryptocurrencies: because you believe, correctly, that you can make money with them. The most common argument against doing so is we don’t know if they will ever be widely used or valuable. But we already knew that, too — it’s why we invested in them in the first place!
7. You’ll learn a lot about how the market works.
Very good reason to buy crypto: you’ll learn how it works.
Crypto is an experimental new asset class. It is a replacement for gold and other traditional assets, with some similarities to other asset classes like stocks and bonds. If you have any background in finance, you’ll know that there are many risks in investing in the stock market (a.k.a. capital markets). But the stock market does not have those same risks when it comes to cryptocurrencies… so why would you invest in cryptocurrencies if they don’t have any of those risks?
Cryptocurrencies are new, so there’s no way to know exactly what the rules are yet; we’re still learning. But just as technology companies keep breaking new ground and innovating, so does cryptocurrency technology; thus cryptocurrency investors should expect new developments and innovations as time goes on… which will be fun for them… but terrible for crypto investors who bought at the peak of the bubble that popped it!
Buy Bitcoin, Ethereum, Litecoin and Ripple if you don’t already own them. This is the first thing you should do if you want to invest in cryptocurrency.
You may be thinking “why should I buy cryptocurrency when I could just trade it?” If a coin has a good exchange rate then why not just buy it on an exchange? To answer that question we need to discuss how cryptocurrency works.
There are two ways to buy coins; “directly” or “indirectly”. Direct purchase is the most common way to obtain coins as it involves no middlemen. The process of buying directly involves setting up an account with a cryptocurrency exchange and making a deposit of fiat currency to fund your account. You can then trade with other traders on the platform within a set period of time (usually 3 days).
When trading directly, there is no middleman and no fees involved. However, it is important to understand that this method of buying makes you vulnerable to price fluctuations as they are not managed by a third party.
We keep hearing about cryptocurrency, but we don’t trust it. We don’t trust that it works, or that the people who are selling it actually own the coins they are peddling. And we don’t trust that it is something we want to own.
But in a world where every new technology needs a reason to exist, let’s give crypto a shot.
Cryptocurrency, bitcoin in particular, is complicated. The most popular crypto currency is bitcoin. It’s a digital currency that uses technology called blockchain to operate securely. Blockchain is a public ledger that records all transactions in a block and verifies the integrity of each block by using cryptography.
But blockchain is more than just a method of recording transactions. It is also a way to do business and to exchange value between people by using code instead of paper and coins. That’s where we come in: cryptocurrency trading. We use our technical expertise to help you make sense of it all so you can buy the right kind of coin for your needs, find the best way to exchange it, and save money while you’re at it.
We’ve written blog posts that explain what cryptocurrencies are and why we think they will become an important part of our future economy. In these articles we’ll describe what cryptocurrency is good for, and how you can use it to invest in a company or fund.
You don’t have to be an expert in trading or finances to know that the prices of cryptocurrencies like Bitcoin and Ethereum are going up. The problem is the same one with many things: you can make money just by buying low and selling high.
But if you want to try to make a profit, you have to understand what makes the prices rise. There is nothing mysterious about it.
In a free market, buyers and sellers are free to transact at any price they want between themselves. It’s possible that the price will go down, but it’s also possible that the price will go up, because something new has happened that affects the value of Bitcoins or Ethereums or whatever else is being traded. If you buy Bitcoin in order to make money when it goes up, you’d better understand what makes it go up.
Buying in anticipation of future appreciation isn’t a good strategy for making money; it’s a good strategy for speculating on something nobody really knows about yet – just like betting on a sports team before someone has played a single game.