According to one recent study, 1 in 10 people invest in cryptocurrency.
If you want to get into buying Bitcoin and buying Ethereum, you might be wondering about how investing in cryptocurrency works.
Thankfully, we’re here to help teach you everything you need to know about investing in crypto. So make sure you keep reading so you can learn and earn with digital currencies!
What is Cryptocurrency?
Cryptocurrency is money that is based on blockchain technology. That means it’s not controlled by any government or bank. Instead, it just works by having a record of digital transactions so you don’t have to deal with a bank.
There are lots of technical details that you can learn, but cryptocurrency is just cutting out a bank so you can pay people and vendors directly.
The most popular cryptocurrency is Bitcoin, but there are many others that you can invest in as well.
Devise a Strategy
You should make a strategy for investing. One strategy is to only allocate a small portion of your money to cryptocurrency investments, especially if you’re a beginner.
You’ll find that a lot of cryptos can be expensive, so you should find some that are cheaper.
Crypto wasn’t even intended to be treated as an investment. Instead, it was meant to act as a currency, so you should be careful in which ones you invest in.
You may also want to find a strategy that focuses on smaller, lesser-known cryptos to get the most for your money.
How to Invest
Now that you understand the basics, you can invest on sites like top cryptocurrency exchanges or Robinhood.com.
You won’t be able to buy Bitcoin at your traditional online brokers, at least not yet. However, there are some brokers where you can buy Bitcoin and other cryptos.
For example, Robinhood is listed as one of the top platforms for crypto training. It’s very easy to use and the developers designed it for people who don’t know much about investing. But it doesn’t offer even a fraction of the cryptocurrencies available on their platform.
You can also visit some of the popular cryptocurrency exchanges.
Store Your Crypto
Once you’ve invested in your crypto, you’ll have to store it somewhere safe.
Since crypto exchanges don’t have any formal backing, you won’t be insured if you lose it. In fact, you forget your passwords or someone steals them, you won’t be able to get them back.
Since it’s all online, it makes it easier to hack as well.
Instead of just keeping your coins in a wallet, you should keep them somewhere safer. In fact, you may even want to use a VPN when you make transactions so no one can hack in and trace where you’re going to put your coins.
Learn More About Investing in Cryptocurrency
These are only a few strategies to use when investing in cryptocurrency, but there are many more strategies to try.
There are plenty of crypto investing tips out there, but how do you know who to trust?
Thankfully, we have more crypto tips to help you out, so make sure you explore our website! Visit the Finance section of the Best Business Builders Blog right now to learn more about BTC and ETH!