Cryptocurrency has only been around for a short while, nevertheless, it’s already expanded in numbers has much as the traditional currency has. Cryptocurrencies have been a subject of intensive conversation over the last couple of years. I am sure many you, including myself, have heard stories of individuals becoming millionaires overnight with cryptocurrencies especially Bitcoin. But with these currencies, we always see wild fluctuations in their price. However, there’re opportunities for big gains for individuals who can stomach the risk of losses as well.
If you’re interested in investing in cryptocurrencies, here’s what you should know:
What is Cryptocurrency?
It can be very difficult to give a single definition for the thousands of different cryptocurrencies available today. In the meantime, according to Investopedia.com, “A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology.” Whilst Bitcoin is the very first and most well-known cryptocurrency by far, it’s led to the creation of countless numbers of alternatives such as Bitcoin Cash, Monero (which focuses on privacy), Komoda (named after the largest lizard on earth), Apollo Currency (named after a Greek God), Ethereum, and Litecoin, just to name a few.
However, keep in mind that many of these currencies aren’t supported by a government or a safe haven like gold or precious metals, as most currencies are. This makes it much riskier for investing, as many investors have learned the hard way.
Should I Invest in Cryptocurrency?
Here is a one-sentence answer, the cryptocurrency market is volatile- which means that the prices of these currencies are very unstable. They continuously move up and down over the short-term. Therefore, similar to other investments, |you need to weigh the possible gains against your risk tolerance. Should you be looking to create wealth over decades then cryptocurrencies probably are not for you, because nobody can or has accurately anticipated what is going to happen to the market. Although that’s technically true for any other investment, some grow much more consistently, with significantly much less volatility.
If you’re willing to consider the risk and you believe the present cryptocurrencies prices are at their low point before an upswing, by all means, give it a go. Generally, it is important, as with any kind of potential investment, is to have a clear idea of the risks you are taking and how it can affect your financial health. But if you’re aware of the potential risks and you want to check it out anyway, you might be one of the lucky ones.
The 5 Most Popular Crypto Investing Sites
Coinbase is the world’s largest cryptocurrency exchange platform, with over twenty-five (25) million users throughout 32 countries globally. They allow individuals to securely purchase, store, and sell cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and much more. Try Coinbase today >>
Gemini is a well-known platform to invest in crypto due to its given attention to security and openness. They made it their duty to focus on safeguarding their customers. Gemini was built with a “security-first” mindset from day one. Investors can create price notifications to stay up to date with the market, arrange recurring buys, create your own crypto portfolio, and maximize your trading strategies. Get Started here >>
eToro is a global pioneer in cryptocurrency, the online platform already offers many of the world’s most popular cryptocurrencies including Bitcoin, Ethereum, XRP, and many more. Customers will also benefit from their real-time execution of market orders and unlimited withdrawals. Visit eToro >>
Robinhood offers commission-free crypto trades on its platform. They started in only a few states, and with mainly Bitcoin and Ethereum, however, they plan on growing their brand and features quickly. Presently there are limitations, but it's free! Check out Robinhood here >>
Bitfinex is a full-featured trading platform for major digital assets as well as for cryptocurrencies. They offer leveraged margin trading via a peer-to-peer financing market and allowing customers to securely trade with as much as 5x leverage. Get started here >>
Investing in cryptocurrencies isn’t different from investing in stocks/bonds. With cryptocurrency, you’re required to open up an account with an exchange, and with stocks/bonds, you open up an account with a brokerage, after that you deposit money. The only distinction with investing in crypto is that you have to buy them first using deposited funds before you can trade them.
Let me know which of these platforms have you used or currently using?