This article will explain everything you need about cryptocurrency investing, including how to buy Bitcoin. And, which cryptocurrencies are worth your time, and what type of hardware you’ll need for mining.
Create a plan
You need to have a plan. You should have a plan for the future, a plan for the short term, and a plan for a long time. You also must ensure that your plan accounts for the unknown and unexpected.
For example: If you’re investing in cryptocurrency with an eye toward retirement in 10 years, then it makes sense to keep your investments in Bitcoin or Ethereum safe from crashes that might occur over those next few years.
However, if you’re looking at cryptocurrencies as an investment opportunity in just one week or two weeks, Then it’s probably better not to focus on long-term gains so much as short-term ones, and riskier coins like Bitcoin Cash (BCH) may prove more profitable than safer options like Litecoin (LTC) or Dogecoin (DOGE).
Buy Bitcoin (BTC)
When you buy Bitcoin, you should also set up a personal wallet. There are multiple ways to do this, including hardware and paper wallets. The process is similar to how you’d purchase anything online: go to the website and follow the steps for verification and payment. Once your account is verified, you’ll be able to deposit money into the exchange by adding funds via cash or credit card, allowing you to trade in USD or EUR for BTC or ETH.
Secure your funds by moving them to a personal wallet.
Now that you have bought some cryptocurrency, you need to secure your funds. You should never leave cryptocurrency in an exchange wallet for too long. The most secure way of storing cryptocurrencies is by moving them to a personal wallet controlled only by you.
Invest in an ICO (Initial Coin Offering).
An ICO is a way to raise funds for a new cryptocurrency venture. It’s like an IPO (Initial Public Offering) where you buy shares of a company, except with an ICO, you’re buying tokens issued by a blockchain network or platform.
In addition to the obvious benefit of being among the initial investors in what could eventually become one of the most valuable cryptocurrencies out there, there are other reasons why investing in ICOs can be lucrative:
- You get some ownership stake in that cryptocurrency network or platform which means you have more control over its direction and success than you would if it were just another coin on an exchange.
- The value can appreciate significantly if the project does well and becomes popular, as was the case with Ethereum when it launched its token sale back in 2014.
Trade Bitcoin on an exchange.
If you’re looking to buy or sell bitcoin, exchanges are a good place to do so. Several exchanges allow you to trade fiat currencies like the US dollar and euro for bitcoin and other cryptocurrencies. Some exchanges also allow you to trade digital assets like gold bullion or collectible cards.
Research and manage your investments carefully, and you can reap the rewards.
Researching before investing gives you an idea of how cryptocurrency is valued compared to other cryptocurrencies and fiat currencies. You should also look at historical price charts to see how it has performed over time and what kind of return it has given investors. If you don’t feel like doing this research yourself, plenty of third-party services will provide this information for free.
Conclusion
Read this guide to learn cryptocurrency. Cryptocurrency is a fascinating area to invest in, but it’s also volatile and risky. This means you have to do your research before you invest. Don’t just buy something because you think it’s going up or down, but rather make sure that you understand what the company does and how its technology works. Then be sure that there’s enough demand for its product or service so that investors will continue investing in the future. Otherwise, there would be no reason for anyone else to invest either!
