Beginner’s Guide to Cryptocurrency Investing
Beginner’s Guide to Cryptocurrency Investing
Cryptocurrency is an interesting category which has made the storm mainly in the past few years. There was even a wave where the most famous form of cryptocurrency was worth over 10,000 U.S. Dollars! With that being said, there is one thing that many people need to realize (actually a lot, but we’ll cover some in this post), and the main one to kick off our beginner’s guide to cryptocurrency investing is that you need to have maximum security of your assets and your currency and wallets. Only you are responsible for the loss of them because cryptocurrencies are unregulated. You need to really do a lot of homework and if necessary, take some blockchain courses that can help you with investing.
Bitcoin or Altcoins?
Altcoins are a form of smaller cryptocurrency that can range anywhere from a few hundred dollars, all the way down to fractions of cents. These are a lot easier to mine and even to invest in than actual Bitcoin because they’re less expensive. The awesome thing about them, however, is that they’re constantly growing and fluctuating, making the cryptocurrency market just like a real stock market.
Should I Mine or Buy/Trade/Sell?
No matter whether you’re deciding to mine your own cryptocurrency, you need to be aware of the advantages and disadvantages of it. Your gear, power consumption (your actual kWh of usage with your electric provider) rates, and more play an important role in whether it’s actually beneficial for you. Not only that, but buying mining rigs can get pretty expensive, even though they generally pay for themselves times over in the long run.
Finding the Right Exchange
While in the past, Coinbase was one of the most popular platforms as far as strict high-quality wallets and exchanges to use. Then came the emergence of numerous crypto exchanges against them, as well as a class action lawsuit against Coinbase. Numerous exchanges have emerged, but most of them don’t cater to the United States, which can make it somewhat hard for those of us in the U.S. Even Robinhood didn’t hold up as far as being the most secure and best one. Not only that but being able to trade and use cryptocurrency on things like social media were still limited. All of that is changing soon due to the thanks of a new blockchain exchange system called Rubix. You can check them out at https://rubix.io.
How to Invest Wisely
Just like the stock market, buy coins when they’re at their lowest, or when they’re in a “downward” slope. The reason for this is because cryptocurrencies are in fact here to stay, and then you can resell them for a higher value when they rise again. Don’t spend too much money on cryptocurrency either, and make sure that once you do, you back up your cryptocurrency on a wallet.
Though some people use online wallets, these can still have security breaches possible, so your best bet is to literally get a USB device that can store your actual blockchain chunk on it. If you don’t understand it, then simply take one of those courses, and educate yourself well before you actually invest, and you should be fine. Another way to go about it is by using faucets, a handy way of collecting tiny amounts at a time.