Should I Trade Or Invest In Cryptocurrency
The decision to trade or invest in cryptocurrency coins such as Bitcoin, Ethereum, Litecoin, XRP and Bitcoin Cash depends on how much involvement the person wants to have after purchase. An investor will buy when the asset is low in price with the goal to generate income or appreciation over time and sell Bitcoin or altcoins for a profit.
In comparison, a trader is more involved to manage a position over a shorter during such as hours, days or even weeks. The trader may use leverage to take advantage of volatility by trading the swings with a smaller capital amount. If price or direction exceeds a risk tolerance, the trader will exit the position and wait for the next opportunity to make profit in the market.
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Choose A Cryptocurrency Wallet
Ledger Nano S
Before you buy digital currency, you need a place to store it, and thats where crypto wallets come in. Theyre known by several nameshot wallet, hardware wallet, software walletbut come in two main types:
Cold Wallet: A physical, hardware-based digital wallet for storing cryptocurrency that isnt connected to the internet, akin to a very high-tech flash drive for storing cryptocurrency. Cold wallets come with multiple layers of security, and are more difficult to hack than an internet-connected wallet.
Hot Wallet: A software-based digital wallet that is connected to the internet and often comes in the form of an app.
Over the years, certain companies have emerged as reliable crypto hardware wallet manufacturers. Ledger, for example, has been making cold wallets for years now and could be a good place to start. Trezor is another big name in the hardware wallet space.
If you want to go with a digital wallet, most major cryptocurrency exchanges package an online wallet with your user account. Coinbase, maybe the largest cryptocurrency exchange out there, does this. Its wallet is highly rated, and you dont need a Coinbase account to use its app.
Top Apps For Cryptocurrency Trading
The apps below include some typical phone-based trading apps, some general financial apps and specialized crypto exchanges. Weve included pricing as well as how many coins the app allows you to trade, so you can get a sense of the scope of each app.
If youre interested in trading the largest cryptocurrency, Bitcoin, exclusively, it may not make sense to go with an app that offers you dozens of others. On the other hand, if youre looking to trade whatever is hot at the moment, consider an app with more variety.
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Best For Altcoins: Binance
Geared for more advanced users
Binance US has fewer trading pairs than international version
Not all states supported
The Binance exchange is an exchange founded in 2017 with a strong focus on altcoin trading. Binance offers over 100 different trading pairs between different cryptocurrencies. It offers plenty of fiat-crypto pairs as well.
As of July 2021, Binance dominates the global exchange space, making up a significant portion of crypto trading volume daily. The exchange only allows for U.S. Dollar deposits by global users via SWIFT, but it does allow you to directly purchase a select number of cryptocurrencies with a credit or debit card. Deposits using 12 other fiat currencies are allowed, including the Euro.
Binance is suited to people who would like to trade or invest in lesser-known altcoins. Binance offers more than 50 different cryptocurrencies to trade and is a good option for anyone who wants more advanced charting than most other exchanges. The features, charting abilities, and data that come with your account are truly impressive, especially when you consider their reasonable fees.
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Coinswitch: Bitcoin Crypto Trading Exchange India
CoinSwitch Kuber is yet another user-friendly crypto exchange platform in India and is a good app to buy cryptocurrency. With a simple app that is helpful for beginners, you can start your investment with as little as Rs. 100 in various cryptocurrencies, including Bitcoin, Ethereum, Ripple, and more. You can trade in over 100+ cryptocurrencies in this app.
CoinSwitch Kuber supports instant deposits and withdrawals from your bank account. In order to start trading, there is a smart KYC process, and upon approval, you can trade with more fund limits. The cryptocurrency app is flexible for newbies who are looking to invest in crypto as well as enthusiasts who are stuck to trading all day. CoinSwitch Kuber also claims to have prompt customer support and is the best app to buy cryptocurrency in India.
What Is A Cryptocurrency Exchange
A cryptocurrency exchange is a company that facilitates cryptocurrency transactions. Cryptocurrency exchange customers can buy and sell various digital currencies. They may also be able to do the following through the exchange’s platform :
- Exchange one type of cryptocurrency for another at prevailing exchange rates.
- Exchange cryptocurrency for fiat currency , or for cryptocurrencies tied to fiat currencies.
- Spend cryptocurrencies, for example, using a linked debit card.
- Access educational resources to learn about digital currencies.
Look out for the exchange with the best app for trading cryptocurrency if you plan to trade digital assets on the go.
What Are The Types Of Cryptocurrency
Before cryptocurrency investing, it is essential to know the types. There are many different types of cryptocurrency systems that you can invest in. Bitcoin is arguably the grandfather of all crypto. It has been around for over 10 years and its the largest cryptocurrency system in the world, with a market capitalization of about $128 billion. Here are some of the other cryptocurrency you can buy:
Litecoin: Created by a former Google employee, Litecoin is very similar to Bitcoin, but has shorter transaction times and lower fees.
Ethereum: Its a cryptocurrency, but the main focus is on purchasing applications without having to pay a middleman .
Ripple: This is a cryptocurrency that doesnt use blockchain technology. Its mostly used by corporations to move large sums of money.
Cardano: This is a blockchain-based cryptocurrency thats used primarily to store private data.
Blockfi: Best For Earning Interest
For many investors, immobilising their digital funds in a hardware wallet is the go-to strategy for ultimate safekeeping. But this doesnt build additional wealth over time. BlockFi is among the many new reliable companies to offer bank-like interest accounts to long term cryptocurrency holders. By depositing cryptocurrency into BlockFi, you can earn compound interest on your Bitcoin, Ether, stablecoins, and other digital assets, with monthly payouts to your wallet.
- Up to $250 in BTC sign-up bonus for new users
Things to keep in mind
- BlockFi has custody of your funds
BlockFi is backed by $450 million in investments from some of the biggest players in the crypto industry, including Coinbase Ventures, Galaxy Digital, Morgan Creek Capital Management, Valar Ventures, and Winklevoss, and manages assets worth over $15 billion. For storage, BlockFi uses bank-regulated Gemini as its primary custodian, one of the most trusted names in the crypto industry.
Special offer: Get a free sign up bonus worth up $250 in BTC with our special BlockFi partner link.
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What Is A Paper Wallet
To keep it very simple, paper wallets are an offline cold storage method of saving cryptocurrency. It includes printing out your public and private keys in a piece of paper which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user. You do not need to worry about the well-being of a piece of hardware, nor do you have to worry about hackers or any piece of malware. You just need to take care of a piece of paper.
What Makes Cryptocurrencies Different From Fiat Money
Fiat money money like the American or Canadian dollar is issued by the government, meaning theres a central authority that controls its value, interest rates, and supply . Many view this degree of government involvement in the mechanics of the free market as manipulation and as an archaic attempt to manage a vast and complex economic system. A noble intention at best, a catalyst of hyperinflation that makes wealth building very difficult for the average person, at worst.
Cryptocurrencies, on the other hand, are decentralized all transactions are done peer-to-peer or through smart contracts and theres no authority overseeing them. Many people consider this a massive advantage over traditional money, because it gives them full control of their assets.
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Pros & Cons Of Investing In Cryptocurrency
Investors are turning to crypto over traditional government-based money for a variety of reasons. Some point to cryptos ability to reduce corruptionchances of abusing power increase when one entity holds all the power, and cryptos blockchain technology distributes power among all members of its network. Crypto also allows folks to cut out the middleman and take charge of their own funds.
But crypto isnt without its riskscurrencies lack regulation and are often volatile. In 2017, the price of Bitcoin and other major currencies skyrocketed above 1,000 percent before crashing back down. And more recently this year, Elon Musks mentions of Dogecoin have it both tumbling and soaring.
Thats one of the biggest risksthe degree to which cryptocurrencies can be artificially inflated, Holt says.
So, is cryptocurrency safe to invest in? Holt says yes, but with a caveat.
If youre very risk-averse, I would not recommend investing in crypto, Holt continues. Its not something I would do as a casual investor generally. But for people who are not risk-aversewho would accept a higher degree of lossthis is a reasonable investment.
In general, Holt recommends those interested in taking the plunge invest in cryptocurrencies that are well known. There are more than 9,000 different cryptocurrencies in existence as of April 2021, but more established cryptos like Bitcoin, Ethereum and Litecoin might be a good place to start.
Know How To Store Your Digital Currency
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Should You Choose These Over Traditional Exchanges
Even the more popular cryptocurrency exchanges like Coinbase and Gemini may not be platforms youve ever heard of or trust with your financial information. And others are simply difficult to navigate, making the process of buying crypto even more complicated for beginners.
Because theres little federal regulation, it can be difficult to evaluate how secure or reputable a traditional crypto trading platform is. While apps like Venmo or PayPal cant protect your crypto holdings under FDIC insurance like they can your cash, familiarity with these apps can make the experience a bit simpler maybe you already have your financial information linked, or the user interface is just more familiar.
How much transaction volume and transparency into their financials and business operations I really think is the stuff you want to look at, says Douglas Boneparth, a financial advisor and president of Bone Fide Wealth in New York. Are most people going to do that? No, theyre going to find the easiest app to download and link their bank account, and make it easy to buy crypto again. Thats kind of the appeal of mobile apps and the like.
But many experts view the apps as a jumping off point, not necessarily somewhere theyd recommend you keep your coins long-term.
Highlights Of The Story
- Cryptocurrencies like Bitcoin and Ethereum are changing the way we perform digital transactions.
- Many countries are debating whether to allow to buy cryptocurrencies or not because of their decentralized nature and tax implications.
- A mobile app for trading cryptocurrencies is the best way to enter that world and learn. Many apps can help you get started as a beginner.
Cryptocurrency is the money of the future, and as the digital world grows, the use of cryptocurrency is aimed to drastically increase. These days people are getting their hand the first-hand technology by using apps where they can buy Cryptocurrency. These intuitive apps dont just help in quickly doing a crypto trade but also help them invest their money to gain larger profits. We have compiled these best apps to buy cryptocurrency lists so you can up your crypto game and stay on top.
With so much buzz across the globe, India too is seeing a sudden surge in people investing in cryptocurrency, starting from the most popular Bitcoin to more than 100 other coins, including DogeCoin, Shiba Inu, and more. While searching for the best apps to invest in cryptocurrency, you might have come across several apps. Here, we have gathered the five best apps to buy cryptocurrency in India.
Also Read: Top 5 Apps to invest in Mutual Funds in India.
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List Of Best Mobile Investment Platforms & Apps
This section covers a sort of new-age selection of mobile investment platforms and apps. While the services listed above in the online section have their own apps and can be accessed via mobile platforms, the following services actually emerged as apps. They are better known to younger audiences seeking cheap and easy ways to establish portfolios, and in some peoples opinions they represent the future of independent, personal trading.
Coinbase Best Trading App For Beginners
Although Coinbase wont be the right crypto trading app for some of you, it likely will be if you are an absolute beginner. The reason that I say this is that the app is one of the easiest to use. In fact, even if you have little to no experience in trading cryptocurrencies, you should be fine with Coinbase.
The Coinbase application allows you to buy and sell all the major cryptocurrencies.
These cryptos can be purchased in the traditional sense, meaning that you retain 100% ownership. You can keep the purchased cryptos on the exchange itself, which is handy if youre going to be trading them. Coinbase has never suffered any hacks and is one of the safest exchanges for the custody of your coins. Alternatively, the Coinbase trading app allows you to withdraw your cryptocurrencies out to your private wallet. This is much more in line with the crypto ethos of practicing self-custody of your coins.
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Best Cryptocurrency Apps For Trading And Investing: Comparison
There are hundreds of cryptocurrency apps to pick from. After careful review and testing and considering multiple factors, the crypto trading apps listed in this article represent the most trustworthy, easy-to-use, secure, and have a reputable track record. Compare the features and fees of these crypto apps side by side to find the best one for you.
The list gives an overview of the best apps on Android and iOS for trading and investing Bitcoin, Ether, stablecoins, and other cryptocurrencies. To learn more about each provider, visit their website and register a free account.
What Is The Best Crypto Platform To Trade Altcoins
Binance is the top cryptocurrency exchanges to trade altcoins due to its wide range of coins offered on the platform and low fees with over 200 trading pairs. In addition, Binance is the leading crypto provider with the highest daily traded volume and liquidity across all its altcoin pairs. Deep liquidity allows users to obtain the best prices and spreads when trading digital assets.
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Do You Need A Paper Wallet
The answer to this question will largely depend on your circumstances. If you plan to spend the summer day cryptocurrency trading a few coins, perhaps you dont. Alternatively, if youre in for the long haul, and dont intend to touch any portion of your stash, then a paper wallet is the most secure option available to you. The paper wallets that you can use are as follows:
- For Bitcoin, Litecoin, Dogecoin etc. you can use Wallet Generator.
- For Ethereum and ERC20 tokens you can use My Ethereum Wallet.
Best Overall: Coinbase And Coinbase Pro
Solid variety of altcoin choices
Extremely simple user interface
High fees when not using Coinbase Pro
User does not control wallet keys
While the cryptocurrency industry has been fraught with fraudulent coins and shady exchanges, Coinbase has largely avoided any controversy. Coinbase offers an extremely easy-to-use exchange, greatly lowering the barrier to entry for cryptocurrency investment, which is typically seen as confusing and convoluted.
Coinbase also offers insured custodial wallets for investors and traders to store their investments. They carry insurance against data breaches and hacking, and your cash is stored in FDIC-insured bank accounts which is important since users have reported accounts being hacked and funds being drained. The Coinbase custodial accounts are very convenient for newer users just getting their feet wet, but Coinbase owns the private keys to the coins, not the investor.
Read the full Coinbase review.
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