Investing in Bitcoin and Ethereum is like investing in any other stock. If you are researching how to invest in cryptocurrency, you will see that the most common words are Bitcoin, Ethereum and blockchain. You may have heard of these words if you have heard of cryptocurrencies where people talk about them.
But what about the others? There are all kinds of cryptocurrencies out there. Some of them are just a form of digital money similar to Bitcoin or Ethereum but with different names and different ways to spend it. Others are more like virtual currencies as a way to sell goods or services online or use it in games.
What is the difference between these two types of crypto assets? The main difference is that crypto assets can be used to buy things while virtual currencies can not be used to buy anything at all. Crypto assets can also be exchanged between people while virtual currencies cannot be traded between people except by the exchange itself.
The biggest cryptocurrency story of 2017 is the meteoric rise in the value of Bitcoin. The price increase has been so huge that even people who don’t pay much attention to financial markets are now paying attention. Almost everyone “knows someone” who has made a killing on cryptocurrencies.
What’s behind the big gains? I’m not a financial advisor, and none of this should be taken as investment advice, but here are some thoughts:
The low risk, high reward nature of investing in Bitcoin, Ethereum and other cryptocurrencies can be extremely attractive due to their volatility. It’s important to remember, however, that there’s also significant risk in this market.
Some investors have lost their entire investments in cryptocurrencies due to hacks and technical glitches. If you’re new to investing, this may be a good time to learn how to put money into a brokerage account with a company like TD Ameritrade or E*Trade before trying crypto.
The returns on the investments have been huge … if you invested at the right time. You could have invested $100 in Bitcoin at $1 per coin (or fractions thereof) back in 2010 and it would now be worth over $10 million dollars today. But some people — including me — didn’t invest in Bitcoin until this year because
I just lost my shirt on Ethereum.
I bought into the cryptocurrency back in May when it was still trading below $100. Its value quickly rose above $400, and I watched with amusement as my $300 investment became worth over $2,000. I was hooked.
Over the next several months, I put almost every spare penny I had into Ethereum. By the end of last year, that $3,200 had become worth over $17,000. The profits were burning a hole in my pocket.
I wasn’t alone in this euphoria; everyone around me was doing it too. My coworkers were talking about their latest bitcoin investments during lunch breaks. My barber and my dentist asked me about it. Even my mom told me she’d invested in ethereum after reading about it online.
I didn’t get out when I should have, and now I’m paying the price for my greed. After reaching an all-time high of almost $1,400 in January, Ethereum plummeted to less than $600 by mid-June — a loss of more than 50 percent from its peak just five months earlier.
So you’ve heard about the cryptocurrency craze, and you want in. It’s been a wild ride for Bitcoin, Ethereum and other cryptocurrencies since their meteoric rises in 2017, but if you’re new to the world of digital currency and think that buying one or two coins will make you a millionaire overnight, think again. Even if you’ve already dipped your toes into the waters of cryptocurrency trading, there are some things to be aware of before you delve any deeper. To help you get started without fear of losing everything to hackers or market fluctuations, I’ve outlined below some of the key things to know when investing in digital currencies.
Before You Invest:
Do your research.
The first thing to do is figure out what kind of investment fits your needs. Are you going for short-term gain? Are you looking for more stable long-term value? Do you want to trade on a daily basis? Will you be keeping track of multiple currencies at once? Are you willing to take risks or do you prefer lower stakes? These are all important questions to ask yourself before committing money to the cryptocurrency space. It’s also worth noting that just because something is popular now doesn’t mean it will be tomorrow; fads can fade fast in the world of cryptos.
Cryptocurrency live is an educational course that will teach you everything you need to know about cryptocurrency, with a heavy emphasis on investing in Bitcoin and Ethereum.
Whether you are brand new to the world of cryptocurrency, or a seasoned veteran, this course will have something for you. I have always felt that there is a lack of educational content available to crypto investors and enthusiasts, so I put my head down and got to work creating the best course I possibly could.
What Will We Cover in This Course?
In this course we will cover everything from why we believe cryptocurrencies like Bitcoin and Ethereum will be successful in the long term, to learning how to buy your first Bitcoin or Ethereum using Coinbase.
The best part? You can try out every single lesson in this course for free! Just follow the link above and get started learning right away.
There are two primary ways to buy and sell cryptocurrencies:
1. On an exchange -> These exchanges let you buy and sell cryptocurrency through the exchange but do not hold custody of your coins.
2. Using a broker -> These brokers will hold custody of your coins so you don’t have to worry about storing them in a wallet yourself.
Buying Bitcoin
Buying Bitcoin is pretty easy these days. There are many companies that allow you to do this, but the best option is either Coinbase or Coinmama. Both allow you to purchase bitcoin with credit card or bank transfer. If you’re looking for a larger limit on how much bitcoin you can buy, Coinmama should be your choice as they offer up to $5,000 per day or $20,000 per month compared to Coinbase which offers up to $500 daily and $1,500 monthly. I’ve personally used both and had no issues with either of them. Both sites are very fast and user friendly for purchasing bitcoin and other altcoins with your fiat currency (USD).
[Image: Scott Walker](https://images.gr-assets.com/authors/1429425859p2/2360.jpg)
This is a long article. It will teach you about bitcoin and cryptocurrencies, but it is not the only resource out there. If you want to learn more about altcoins, I suggest looking at the sources I mention below.
What Is Cryptocurrency?
Cryptocurrency is a digital asset designed to be used as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.[1] Cryptocurrencies are called this because they use cryptography to secure their network and verify transactions.[2] Bitcoin was the first cryptocurrency ever created and it has remained the most popular cryptocurrency since 2009.[3][4] Some of the other well-known cryptocurrencies include Ethereum, Litecoin, Ripple XRP, and Dash.[5][6][7]
The top five cryptocurrencies by market capitalization are currently Bitcoin, Ethereum, Litecoin, Ripple XRP and Dash according to CoinMarketCap.com.[8]