Deciding whether or not to invest in a cryptocurrency is a personal decision. Asking for advice from friends, family, and other people you know can be helpful. But it is important that you make the final decision yourself.
Here are some things to consider when deciding if you want to invest in a cryptocurrency.
Is this a new cryptocurrency? If so, are the developers well-known and trusted?
Is this an existing cryptocurrency? How long has it been around? What is its track record?
What does the white paper say about the proposed solution? Can it be done with existing technology or will new technology be needed (and developed)?
Are there competitors? If so, what makes this cryptocurrency different and better than the competition?
What are the risks of investing? Are there any legal issues I should be aware of (based on where I live)? Is there a real-life problem that needs solving that this cryptocurrency solves?
There are many things to consider when investing in a cryptocurrency, many of which are out of the scope of this article. However, there are a few broad concepts that should be considered by investors as they review their cryptocurrency options.
Before we even begin to talk about investing, it is important to ensure that you have opened a bitcoin wallet and have your first amount of bitcoin ready. Without bitcoin, it is not possible to invest in bitcoin. There are many websites where you can buy your first amount of bitcoin. One such website is Coinbase.
I would recommend that anyone wanting to invest in cryptocurrencies should open a Coinbase account, as this is the most popular website for purchasing and selling cryptocurrencies. They also offer an app which makes it easy to purchase, sell and view your cryptocurrency from wherever you are.
When you sign up for an account with Coinbase, you will automatically get a free wallet with the option of upgrading to a paid wallet once you feel more comfortable with them. It takes less than 5 minutes to sign up and verify your identity, after which you will be able to purchase bitcoin using a debit/credit card or bank transfer.
First, let’s get this out of the way. If all you want is to buy some bitcoin, go do it. You can stop reading now. This guide isn’t for you.
But if you want to know how to invest in bitcoin, and which cryptocurrency might be next, then read on.
Here are the things I’ll cover:
Anyone who is remotely interested in learning about crypto has taken part in some form of trading. As it gets more and more mainstream attention, newer players want to enter the market and get their slice of the crypto pie. While some choose to buy and hold over a longer period of time, others look at day trading as a way of making money in the short term.
However, before diving into the world of cryptocurrency, it is important to first understand the risks that come with trading in such highly volatile markets. By understanding these risks and making sure you’re ready to shoulder them, you can be among those who survive the volatile nature of cryptocurrencies and come out on top. Some of the biggest risks are:
Volatility – The price of bitcoin is always changing. There are no natural stabilizers when it comes to bitcoin, so we tend to see huge fluctuations in its value on a daily basis. This makes it risky as an investment, especially if you need to cash out quickly. Although there are many who believe that this volatility will decrease over time as Bitcoin markets and the technology matures, it could prove difficult for many people to wait it out.
Lack of Regulation – Unlike traditional financial institutions which have government backing and regulations in place, cryptocurrencies are not regulated
Read the guides and articles that cover the basics of Bitcoin and Ethereum. You don’t need to understand the technical complexities, but a basic understanding will help you respond to news and announcements that may help you predict future price movements. What you should be looking for is day-to-day fluctuations, which may or may not be caused by an event.
2) Research coin wallets
Before you can buy any Bitcoin, you’ll need somewhere to keep them. This is done through a Bitcoin wallet. Most coins have an official wallet or a few officially recommended third party wallets. In order to use any cryptocurrency, you will need to use a cryptocurrency wallet.
3) Buy Bitcoin on an Exchange
Buying Bitcoin with fiat currency such as GBP or USD can be done through a variety of different exchanges and brokers. Although each exchange functions independently, they all trade the same currencies. Therefore, the lowest selling price offered on one exchange will tend to mirror others, although there may be slight differences in the actual price quoted.
4) Wait for confirmation
When it comes to Bitcoins, we recommend using Electrum wallet as it does not require downloading the entire blockchain on your computer and has a very simple interface for sending and receiving Bitcoins. If you are still interested in
It is a common belief that cryptocurrencies are the hottest investment opportunity currently available. Indeed, there are many stories of people becoming millionaires through their Bitcoin investments. Bitcoin is the most recognizable digital currency to date, and just last year one BTC was valued at $800. In November 2017, the price of one Bitcoin exceeded $7,000.
While you may have missed out on the initial wave of investment, cryptocurrency is still a hot commodity. And though Bitcoin may be far from its peak price, there are other cryptocurrencies that can help investors diversify their portfolios.
If you are looking for an alternative digital currency to invest in, Ripple (XRP) may be worth considering. In this article, we’ll cover:
What Is Ripple?
How to Buy XRP
How to Sell XRP
How to Store XRP
Why Invest in Ripple?