How to Start Investing in Cryptocurrency

Source: Verdict

Cryptocurrency can be a daunting world for those just getting started but it doesn’t have to be. If you’ve got an idea of what you’re getting into and how to get going then a new financial world can open up to you. Here we’ll give you some indispensable tips to dip your toe into the crypto-world and start investing in cryptocurrency.

Where to go?

The first thing to think about when it comes to investing in cryptocurrency is where. Generally the best common place to do this would be through an exchange. They charge purchasing fees but offer you fast and convenient ways to turn your dollar into crypto. Coinbase is an example which easily links to your bank account and charges you on either your purchase or sale.

Other options are available to purchase the currencies such as stockbrokers and peer-to-peer purchase, however, these are limited in type and are less secure.

A key note here – avoid using credit cards to purchase where possible. Most exchanges will charge exorbitant fees if you choose this option over a standard card.

Which Ones Should I Invest in?

There are reportedly over 1600 different cryptocurrencies at the moment which means it’s difficult to know where to start. Some may find security in the larger currencies. Bitcoin, Ethereum, and Ripple are currently the three biggest in terms of use and value. For many, they see investing in a larger organsiation’s blockchain as a more stable and long term option.

Monero is seen as a rising star of the cryptocurrency world and is already well established. Its appeal lies in the fact that it is highly stable and excellent in terms of privacy. The team working on it takes pride in transparency and in trying to constantly improve. It has a dedicated community working on quality and research. 

Key Positives of Investment in Cryptocurrency

The flagbearer for the crypto movement is obviously Bitcoin but, as mentioned, there are others. Ethereum, Zcoin or Dash all offer a gateway to the blockchain and are reasonably straightforward to get involved with. 

The potential growth for cryptocurrency is vast. If you invested $100 in Bitcoin a decade ago, that investment would be worth around $5000 today.

The lack of interference from international governments and banks is a major plus. Freedom from these often overbearing and, some say, archaic mechanisms means the flexibility to evolve and grow is another asset which cryptocurrency possesses.

Practical Advice for your Investments

With any new market investment it can be a little daunting, not to say confusing and some advice along the way never hurts. Here are some hints and tips which you can factor into your decision making when you’re learning how to invest in cryptcurrency:

  • Do your research. Don’t just trust one source, try several to get a clear picture of what to invest in. Sites such as Coindesk and Bitcoinist offer helpful and informative advice on the latest trends in cryptocurrency
  • Take your time to watch and learn. Keep an eye on the markets and what the behaviours of the currencies are. 
  • Make your investments diverse – The old adage ‘don’t put all your eggs in one basket’ is highly relevant here. Try and put your money into several investments so that if one goes awry, you will have others to fall back on.

Disclaimer: As with any investment, make sure it is something you’re enjoying and you feel you’re in control of. Caution should be maintained throughout the process and it is important that you don’t spend more than you can afford. Sanvada does not officially endorse any cryptocurrency and is not responsible for investment losses or market fluctuations. 

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