It might seem like cryptocurrencies are going up and down recently, but the truth is that they still are incredibly popular, and attract millions of investors. Everyone is expecting another huge boom of Bitcoin and other digital currencies, which is why now is the right time to start investing.
If you have the cash to spare, you have two options. The first one is to have fun and spend it on buying gadgets and playing games. If you choose the latter, read Platinum Play Casino review, and check out their slots, live games, bonuses, and other features available.
You can also invest money in cryptocurrency to make even more cash for playing and leisure time. Here is how to that even if you are a total newbie.
Learn Cryptocurrency Basics
You need to get familiar with your desired investing market. The key to understanding cryptocurrency is learning more about blockchains. These are independent information chains, and no institutions, banks, or governments can control them. Think of them as a way to store digital transaction records anonymously.
Thanks to that, fees per transaction could be lowered, and the process is more secure. You can even use cryptocurrencies anonymously, and without worrying that someone will steal your data. Since blockchains are independent, that means they are prone to price volatility and explosions. That is where an opportunity to earn a lot of money lies.
Don’t Invest Everything at Once
If you have never invested in cryptocurrency before, we suggest starting slowly. In the beginning, focus on setting aside 20% of your investing funds for the digital market. It will allow you to get to know the market, and learn how cryptocurrencies work. As you become more confident, it will be easier to increase your investments.
Now, it is crucial to note that you can expect dividends or interest from cryptocurrencies. That means it is not a classic investment opportunity, but more a way to earn via trading and price fluctuations. It is why you should be careful until you get used to the specific rules of this market.
Pick the Right Coins
You are aware that Bitcoin is the most popular cryptocurrency out there. It has been like that for a long time, and it won’t change for years. While there is nothing wrong about investing in Bitcoin, there is no reason why you shouldn’t experiment with other currencies,
For example, Ethereum is also very popular, as well as Monero, XRP, Dash, and Zcash. Since these markets do not attract as many people as Bitcoin, they might be a great opportunity to boost profit. That being said, be careful of currencies that only appeared. Many of them tend to be a short hit, but hit rock bottom after that.
Choose a Reliable Platform
The next thing to consider is the platform where you will do your trading. We won’t advertise any cryptocurrency exchange, but we will tell you they are the only locations where trading is possible. That means you can’t go to a bank or a brokerage firm. The latter might offer them, but be careful of scammers and stick to reliable agencies.
If you want to do things on your own, choose a trustworthy exchange. It is always a good idea to go with platforms that have been around for years, and you can easily find them online. Please note that most of them come with trading fees, so make sure that you understand the charges, and you are okay with them.
How to Store Cryptocurrency
Once you purchase cryptocurrency, you will need a wallet to store it. However, this is not a classic wallet but a program that stores information about your currency. Your wallet is storing a key that allows you to access the blockchains in your ownership. It also enables you to see your current balance and transaction history.
These are the main types of wallets available:
- Online – you store these on a cloud, and you can access them from anywhere. However, that doesn’t bring the highest level of security for your funds.
- Desktop – these are programs you install on your PC. It is safer than storing on a cloud but beware of hackers.
- Mobile – similar to desktop wallets, except these are kept in a mobile app. They are convenient because they allow paying with crypto where possible.
- Hardware – the most common example is using USB wallets. These are the safest because you store them away from hackers. The only thing to make sure is that no one steals the USB from you.
Ultimately, trading cryptocurrencies is easy and fun. You will need a bit of luck to earn big money, but if you do, the sky might be the limit for your profit!
Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.