How to invest in cryptocurrency – beginners guide
Digital currencies have raised a lot of hype in the past year, and the world went crazy over bitcoin. But, many investors are still insecure, considering its sudden drop. But, again, the bitcoin and Ethereum remain the hottest investment because people are hoping they can earn big money. If you are one of them and you think you have a change with cryptocurrencies, then we present you the ultimate guide. We have drawn up a simple guide for you, and it is intended for people who are just starting with this form of investment.
What cryptocurrencies should you buy?
Until 2016, Bitcoin was the only cryptocurrency you could purchase, and if you wanted to invest your money in this type of trading, Bitcoin was your only choice. However, the situation on the market has changed, now the investors have a variety of alternatives. Even though, Bitcoin is still the dominant digital currency in this industry, in 2017 we got to experience its sudden drop, which cast doubt, and left many people in worry about its future. This is one of the reasons why traders saw a chance with other cryptocurrencies, like Ethereum. So, if you want to invest your money in digital currencies, you need to have your eyes open and listen to the online community because you have a lot of choices. Here are some possible selections: Ethereum, Ripple, Litecoin, Dash, Monero and many more.
How you buy cryptocurrencies?
A few years ago, it was a real nightmare to buy digital currencies, but nowadays, we have a lot of trading platform which provides such service. The easiest way to purchase cryptocurrencies is to go on an exchange. If you want to avoid paying for high fees, then you should but directly. In this case, you need to find a reliable exchange, open an account, verify your identity and make a transaction. What exchange you will use, will mostly depend on where you live and it’s always better to use an exchange that is physically close to you if something terrible happens. On the other hand, if this is not an option, then it’s better to use an exchange which is located in a stable country and has an excellent legal system.
Is there are a good time to buy?
When it comes to cryptocurrencies, there is no general rule when to buy them. You just need to find a balance because it’s not a good idea to buy them at the peak, but also, it’s not a good idea to buy them when they are crashing. The best time for this type of purchase is when the price is stable and at relatively low level. When the price starts to rise, you need to be strong and resist the temptation to sell your coins because that might be only a beginning. Take some time and follow the trading market, don’t buy coins right away just because you’re bored, or you want to invest your money in something.