Cryptocurrency took the world by storm, and grew into a business with a market value that exceeds $3 trillion. If you’re just discovering the magnanimity of this e-trade, and want to be a part of it, then you’ve reached the right place. We’ll break the process of investing in cryptocurrency down for you, so you can sit back and (hopefully) roll in wealth in no time whatsoever.
Find an Online Broker
It’s as easy as it sounds. All you need to do to invest in cryptocurrency is take the help of a regulated online broker—and you’re all set.
When you use eToro to invest in cyptocurrency, you’re already making a wise decision, as eToro allows you to invest without asking for any transaction fees. All you need to do is open an account with them by giving them access to some of your information, such as providing them with your full name and uploading a copy of your ID. This ensures your safety against money laundering aspects. Moreover, it’s supports coins including ApeCoin and Dogecoin, and gives you access to the greenest cryptocurrencies.
Next, put in a deposit of $10, and then choose from ACH (credit, debit, e-wallet etc.). Once the deposit has been made, search for your Cryptocurrency of choice or discover one by browsing through eToro. The last step involves clicking on the ‘trade’ button, and entering your investment stake in the amount box that pops up on your screen.
We recommend using eToro for people who’re just starting their crypto-journey, because it keeps your token safe in the e-wallet post a purchase of cryptocurrency. You can download the e-wallet on your phone and it’s very easy to use.
It’s one of the biggest cryptocurrency exchange platforms in the world. It has more than 600 cryptocurrencies exchanges globally, and the domestic version that’s only available to clients in US boasts of 80+ exchange supports. The platform allows you to invest in cryptocurrency with a commission of 0.10% per slide. However, keep in mind that if you plan to deposit $ using your debit card, it might get real expensive real quick.
Comprehending jargon can be a challenge when you’re new to a trade, but if you choose to use Coinbase as your online broker, you won’t face this problem. This platform is easy to use and avoids complicated jargon that might go over the head of a beginner.
The best thing, however, is how the platform values its client’s safety and ensures that the stocks are protected by two-factor authentication. Their mobile app has a user friendly interface and provides educational content too. But, this safety doesn’t come cheap, and it makes Coinbase one of the most expensive crypto-trade platforms.
Should You Invest in Cryptocurrency?
Let us start by putting the truth forward: there’s no guarantee that you’ll find yourself a millionaire in a month by investing in cryptocurrency. It’s all a game of luck, concentration, and making the right decision at the right time. However, given the market has surpassed the $3 trillion mark, it appears that investing in cryptocurrency might be a good bet.
First and foremost, find a cryptocurrency that aligns with your financial interest, as they’re thousands of options to choose from. Cryptocurrency metaverse is expanding day by day, and companies are finding new ways of dealing in this trade. But, even if you’re planning to invest on a small scale, you should note that there’s still a chance of capital gain. Many people have made it their primary source of income too.
Don’t Forget That This Trade is Still Relatively New
Given the height of success cryptocurrency has achieved, people tend to forget that it’s still quite new, as the first cryptocurrency (Bitcoin) was launched in 2009. So, if you think the world has already seen crypto-trade masters, stop right there. It isn’t too late to invest and become a pro in the tradeoff e-currency.
Risks of Investing in Cryptocurrency Explained
The benefits of investing in cryptocurrency seem to be endless, but that in no way means that this trade doesn’t come with its risks and challenges. Especially for a beginner, cryptocurrency can be very challenging, but if you play it safe, with a dash of risk, you can well over be on your path to monetary wealth.
The trade is speculative; you can almost never guarantee that an investment will bring you financial gain. The market keeps ricocheting up and down, so the best way to invest is to focus on short term investments. Moreover, the market place has a tendency to be volatile in nature, depending on the scale of the capitalization.
The one thing that you especially need to beware of, is a ‘rug pull’. The term refers to a cryptocurrency project that’s seemingly harmless, but in reality is created to scam people into losing millions of dollars. A recent example of this rug pull is the fake coin, ‘Squidcoin’. And, if you’re wise enough to put some research into the cryptocurrency of your choice, you still may fall a victim to hackers. E-wallet, once hacked, might cost you all your cryptocurrency savings just in a fraction of a second.
But if this scares you, we will consider our job well done, as now you’ll know to tread with extra caution. One way to invest risk-free in cryptocurrency is by scattering your investments in multiple projects. The more you diversify, the safer the trade becomes.
Cryptocurrency Investment in 2023
With unlimited choice comes confusion, as is the case of cryptocurrency. There’re thousands of cryptocurrencies to choose from, but the ones you find below are some seriously good options.
This was the first cryptocurrency to grace the e-currency world, and is thus the most reliable one. It attracts the biggest volumes of trades its way, and is the leader when it comes to market capitalization. It’s also one of the least volatile options available.
This came three years after the launch of Bitcoin, in 2012, and has a pretty neat track record. It’s the cryptocurrency that’s native to Ripple Blockchain, and has the technology to back-up the execution of cross-border transactions. It allows clients to make transfers that are instantaneous as well as cheap.
Granted it was found only 6 years ago in 2017, BNB has still managed to become of the best cryptocurrencies to invest in such a short amount of time. Binance powers the cryptocurrency, which makes it one of the top 5 cryptocurrencies for market capitalization. This is a great option for people who use Binace, as it reduces the exchange commission in the app by up to 25%.
This was first used in 2015, and has since then become the second largest cryptocurrency where market capitalization is concerned. It allows developers the use of smart contracts and decentralized applications.