Basic knowledge of Cryptocurrency
A cryptocurrency is an artificial decentralized currency that works on cryptography which was made to send and receive money without the involvement of a third party.
It is a peer-to-peer network and is very efficient for transactions of money worldwide because its fee is negligible as compared to other networks and every transaction just takes 10min to complete.
If you don’t know what is cryptocurrency and how it works you can read my detailed blog on it Here…
Should I invest in Cryptocurrency or Bitcoin?
This is the most important question that either you should or should not invest in the cryptocurrency world because this is a volatile investment and is not suitable for everyone.
According Warren Buffet, It is not a durable means of exchange, it’s not a store of value
So, if you are a new person, first learn about it and then start investing in it otherwise, you will lose your money.
This system was actually developed for online transaction but now, it has become a very interesting investment.
This type of investment best suits to those who have plenty of extra money and can bear the loss in case of huge falls.
But if you want to invest and maximize your chances of making a profit, then go for other businesses like the stock market and fund investments.
Steps on how to invest in Cryptocurrency
Select an exchange
The first and foremost step of buying a bitcoin is to select an exchange and register your wallet with it.
Exchange actually provides you a platform to buy and sell bitcoins and other cryptocurrencies.
After selecting the exchange, you will connect it with your bank account to convert real money into bitcoins and bitcoins into real money.
Buy Coins through exchange
After connecting your bank account, place your orders with the exchange. It will take less than 10 min for your order to complete and give you your money back in the form of cryptocurrencies.
Find the right currency
At initial times, there was just bitcoin but as this market is growing and a lot of new currencies have been added in it like Ethereum, Dogecoin, and Litecoin, etc.
So, keep information of rise and fall of every currency to generate maximum profit. Here, your network of people will help to update you with this.
There are a lot of Facebook, Whatsapp, LinkedIn and Reddit groups which you can join for free and get updated.
Sell at the right time
You can never make profit if you keep all your money just in the form of crypto and also cannot produce a good profit if you sell at the wrong time.
So, wait and watch for the ideal time to sell your Cryptocurrencies
Here is an App from where you can monitor the rates of different Currencies.
What do you need?
- The basic need for investing in cryptocurrency is a wallet where all of your money will be stored and from where you can do the transactions.
- A trusted exchange that can act as a platform for you for buying and selling Bitcoin.
- Last but not the least, a network of people where you can find out updates about rising and fall of different currencies
Benefits of Investing in Cryptocurrencies
Heavy turn out
Cryptocurrency is marked with heavy turnout and is considered as a best way to get rich in a short time.
As those who invested in Bitcoin at its early stages became millionaires so fast that hardly someone could imagine.
Invest how much you like
This investment does not require a lot of money to be a part of it and you can invest as low as you like.
As “Money begets money”, more you invest more you will get the profit.
Protection from Hackers
As bitcoin is decentralized and just a peer to peer network, it becomes almost impossible for any third party to generate fake transactions.
This is because just you know your wallet code without which it is impossible to do any transaction.
In Crypto, you don’t have to wait for days to get the payment in your account. Instead, whenever your value increases you can immediately get the cash out.
This is also very important thing that you should not wait a lot for more rise in cryptocurrencies because if it rising it can also fall immediately.
Harms of Investing in Cryptocurrencies
Highly Volatile Investment
Bitcoin is considered as a highly volatile investment which it actually is. This is due to its high rises and falls and at the end it is just a network of virtual currencies.
That’s why, it has been predicted by many popular investors that it can disappear any day but it is not going to happen abruptly because it has proved to be a very beneficial technology and no one would like to lose it.
Consider the risks
If cryptocurrencies can give massive benefits then it can also give massive losses. So, take calculated risk and invest only that value which you can bear the loss of.
More than 30% fluctuation in Cryptocurrencies is very normal which does not make it a reliable investment.
Associated with Black Market
Bitcoin is also used in black market and as there is no central authority to regulate it, you can not stop its use in black market.
Many countries has banned it just because of its use in black market.
Tips for investing in Cryptocurrency
Invest just a small amount initially
If you don’t know much about this now, then start with investing just a small value of your capital and start learning about it.
And when you start understanding about its fluctuations then increase the amount gradually.
Do not make it your main investment
Cryptocurrency is a very good investment now, but due to its volatile nature it can never act as a full time business for anyone.
So, invest a proportion of your money in it but never ever become fully dependent on it.
Be actively notice everything
To be in this business, you have to be active about the updates. Because if you would not be active, you can not make a good profit.
Every currency is rising and falling continuously, you have to invest into rising currency and get out of falling currency.
Take precautionary measures with your wallet
As your bank accounts can be hacked, so are your wallets. So, keep a safe wallet which you trust and many new gadgets have also been produced to protect you from hackers.
To take full precautions because all your money is in it.
Here, are some hardware wallet devices which can protect your wallet from any attack.