In the past few years, cryptocurrency has gone from being a fringe interest to a mainstream financial phenomenon. Bitcoin, the most well-known cryptocurrency, has seen its value surge from around $1,000 in 2017 to over $40,000 in 2021. However, Bitcoin is just one of many cryptocurrencies that have seen significant increases in value in recent years. Ethereum, for example, has increased in value by over 3,000% in the past year alone.
With such massive returns on investment, it’s no wonder that more and more people are looking to get involved in the world of cryptocurrency. However, many people don’t know where to start, which crypto loan platform to use or what the best way to invest is. This blog post will provide an overview of why investing in cryptocurrency is a smart move and how you can get started doing so.
What you can expect in this article:
Why You Should Invest in Cryptocurrency
There are many reasons why you should consider investing in cryptocurrency. Here are just a few:
Cryptocurrency is here to stay
Cryptocurrency is not going anywhere. It has already established itself as a legitimate asset class with a growing number of institutional investors getting involved. As more people become aware of cryptocurrency and its benefits, its popularity will only continue to grow.
Cryptocurrency is volatile
While volatility may seem like a bad thing at first glance, it actually presents a unique opportunity for investors. The volatile nature of cryptocurrency means that there is the potential for huge gains if you buy when prices are low and sell when they’re high. Of course, this also means that there is the potential for losses if you don’t time your investments correctly. However, as long as you’re comfortable with taking on some risk, the rewards can be well worth it.
Cryptocurrency is borderless
One of the great things about cryptocurrency is that it knows no borders. This makes it an ideal investment for anyone who wants to diversify their portfolio outside of their home country’s currency and economy.
How to Get Started Investing in Cryptocurrency
Now that we’ve looked at some of the reasons why you should invest in cryptocurrency, let’s take a look at how you can get started doing so. Here are a few steps to take:
Do your research
Before you invest any money, it’s important to do your research and understand what you’re buying into. There are a lot of different cryptocurrencies out there and they all have their own quirks and risks. Make sure you understand as much as possible about the ones you’re interested in before investing any money.
How to raise capital
Crypto loan platforms offer investors a number of advantages over traditional lending services. If you’re looking for a way to borrow money without selling your cryptocurrency holdings, or if you want to take advantage of market opportunities as they arise, a crypto loan could be right for you. Be sure to shop around and compare interest rates and repayment terms before choosing a loan platform to ensure that you get the best deal possible.
Buy BTC or ETH
Most people choose to buy either Bitcoin (BTC) or Ethereum (ETH) because they are the two largest and most well-known cryptocurrencies. These can be bought on exchanges such as Coinbase or Kraken using your local currency (USD, CAD, EUR, etc.). Alternatively, if you already have some BTC or ETH, you can use that to buy other less well-known cryptocurrencies on smaller exchanges such as Binance or Kucoin. Once again, make sure you know what you’re doing before depositing any money into an exchange!
Transfer your coins off the exchange
Once you’ve bought your desired cryptocurrencies, make sure to transfer them off the exchange into your own personal wallet. This helps keep your coins safe from hacks and theft. If possible, use hardware wallets such as Trezor or Ledger Nano S for extra security.
Hold or trade
Now that your coins are safely stored in your own wallet, you can either hold onto them for long-term investment or trade them frequently for short-term gains. If you decide to trade, make sure to set stop-loss orders so that you don’t lose too much money if the market turns against you.
The world of cryptocurrency is always changing, so make sure to stay up-to-date with the latest news and developments. This will help ensure that you don’t miss out on any major opportunities or make any costly mistakes.
Crypto investing can be daunting at first, but it doesn’t have to be. As long as you’re willing to do your research and accept some risk, investing in cryptocurrency can be a smart move that could pay off handsomely down the road. So what are you waiting for? Get started today!
(Please note. this article is not intended to be taken as financial advice.)