4 Basic Tips for Investing in Cryptocurrency

The world of cryptocurrency might seem extremely complicated and even overwhelming to those who don’t know anything about it. But the ironic thing is, cryptocurrency isn’t exactly ”new” — it’s been around for almost 15 years now. 

It first caught the attention of the tech and finance industries back in 2009. But back then, cryptocurrency technology was still in its infancy. Not to mention, the value of Bitcoin. Fast forward to 2017 and a single Bitcoin was worth $19,783! 

Needless to say, it’s come a long way in recent years and is 100 percent worth the investment. Check out this blog on tips for investing in cryptocurrency. 

A Basic Breakdown of Cryptocurrency

Like most people looking to invest in cryptocurrency, you have to start somewhere. And the best place is with a good knowledge of what you’re investing in. In short, here are a few key points about cryptocurrency to help you understand what it is: 

• It’s a form of digital money, i.e. it exists in electronic form
• Cryptocurrency is not governed by a third/external party, such as a bank
• You are the sole owner of cryptocurrency and can transfer amounts instantly without an intermediary or any fees 
• Blockchain technology supports cryptocurrency transactions to ensure all transactions are safe 

Some of the most popular forms of cryptocurrency include Bitcoin, Ethereum, Dogecoin, Cardano, XRP and Solana. Cryptocurrency is so popular today that you can find numerous Bitcoin atm locations in most large cities that allow you to make Bitcoin transactions. 

If you’re interested in making an investment, here’s what to know: 

1. Stick With the Facts 

The truth is, there are plenty of nay-sayers when it comes to cryptocurrency. But if you’re serious about investing, you need to tune out this white noise and focus only on the facts.

In order to invest wisely, make sure you follow reputable news sources, leads, and mentors who understand cryptocurrency. 

2. Prepare Yourself for Volatility

As a first-time crypto investor, it’s important to prepare yourself for the ups and downs of this type of investment. Yes, cryptocurrency is volatile. This is because it’s nowhere near as stable as the physical currencies we know and own. 

It’s important to seek out good advice when it comes to crypto investing and be flexible in your investment decisions. 

3. Experiment With Other Cryptocurrencies 

Sure, Bitcoin is, by far, the most successful and popular type of cryptocurrency on the market today. But don’t sell yourself short as an investor. Take some time to research the success of other altcoins and vary your investment strategy. 

When one coin is down, another might be up, which can help you to balance out your wins and losses — this is smart investing. 

4. Be Smart About Which Wallets You Use 

As mentioned, cryptocurrency is strictly digital. So why do you need a wallet then? Well, the wallet you choose is the place you store your cryptocurrency, in a digital sense. When it comes to crypto, there are two types of wallets — hot online and cold offline wallets. 

Basically, you want to use both. As a beginner, a hot online wallet means you store your cryptocurrency digitally. This is great for versatility and ease-of-use. While cold offline wallets are physical storage devices that store your crypto, much like a USB. They offer better protection from hackers.

Don’t put all of your eggs in one basket (or wallet), make sure to use both, just in case! 

 Tips for Investing in Cryptocurrency Are Just a Click Away 

These tips for investing in cryptocurrency only scratch the surface of what you need to know as a potential investor. If you want to learn more, make sure to check out the rest of this site for your fix!