Wednesday, June 29, 2022

Why Should I Buy Cryptocurrency

So Did We Convince You

Why I’m Buying More Dogecoins Cryptocurrency| Should You Buy Dogecoin Cryptocurrency| Robinhood App

If you were on the edge about jumping into crypto, we hope that these 7 reasons to invest cleared up your doubts. Cryptocurrency is a young market and young markets are where the best money-making opportunities lie. Our advice or not, remember to make your own research before buying into anything and only invest what you feel comfortable losing. That way your crypto journey will be profitable and fun.

How To Invest In Bitcoin And Make Money

Like any investment, making money depends on what price you buy and sell an asset for. If you sell when its price is higher than you bought it for, you will make money.

If you sell for a lower price than you bought it for, you will lose money.

For example:

  • If you had invested in bitcoin at the start of 2020 and sold on 31 December 2020, you would have made a 300% profit
  • If you had invested in bitcoin at the start of 2018 and sold on 31 December 2018, you would have made a 73% loss

Bitcoin is extremely volatile so the trick is not to panic and crystallise your losses by selling when its value inevitably falls. This is the same with all investments.

Proper Protection Of Your Investment:

If you have been following cryptocurrency News, chances are you might have heard about hacks and Cryptojacking attempts. The truth is that, if you are prepared to take a few extra steps, you can protect your cryptocurrency holdings easily. You have to opt for cold storage to protect your cryptocurrencies.

Cold storage refers to storing your cryptocurrencies off-line in the pen-drive like device. Since the cryptocurrencies will then not be connected to the Internet, there is no chance of hacking. There are such cold storage devices available known as cryptocurrency wallets. You can buy them from Amazon.

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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.

Volatility Can Come To Your Advantage:

Which Cryptocurrency Should I Buy Today With $100 ...

Many people are afraid of rising asset prices. The problem is that in such a situation, it is challenging to invest. Every day, the cryptocurrency prices might be inflated in such a situation. Fortunately, cryptocurrencies are much more volatile. In fact, there are long periods of underperformance and negative returns which you can utilize to your advantage.

Such volatility can provide you with the easy entry point. If you have not invested in cryptocurrencies up until now, you can use this volatility to your advantage. It might be gut-wrenching to see your investments down by 20% to 30% in a few months, but with proper diversification and investment rationale, you can reduce this drawdown significantly. We are not saying that any chance of risk is absent. The point which we are trying to make is that if you invest only 10% of your corpus in cryptocurrencies, the overall drawdown on your portfolio will be lower. Moreover, if you pick 10 cryptocurrencies to invest, each cryptocurrency will hold only 1% of your overall portfolio.

When you create such a portfolio, any cryptocurrency falling even 50% will have only a 0.5% impact on your portfolio. This is a figure which you can comfortably live with. Moreover, when you use volatility to your advantage and invest at lower levels, the drawdowns can be decreased further.

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How Do I Buy Amp

First, you will need to download a wallet that can support Amp. Amp is an ERC-20 token, which means that it is compatible with any Ethereum wallet that was built to hold ERC-20 tokens. Once you have a compatible wallet downloaded, you can head to a number of exchanges that sell Amp. As of the writing of this article, you can buy Amp on the following exchanges.

Entry Barrier Is Getting Lower

A few years ago, you needed to be technologically literate to invest in crypto. This is finally changing and today anybody can buy digital coins. The time when you needed to know programming just to launch a crypto wallet is long gone. We live in the age of convenient mobile applications that let you buy stuff in one tap.

Buying coins today may be easy but you still need to know what to buy. We created an infographic with starter-portfolio templates with 4 most popular beginner crypto assets. The infographic explains why you should consider each coin from the list and suggests two portfolio options with different risk levels.

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How To Buy And Sell Bitcoin

Coinbase.com

Now that youre ready to purchase Bitcoin, youll go through the process of buying however much you can afford. The process will be different depending on what exchange you use.

Some just have a buy and sell button where you specify how much currency you want to purchase or sell off. Others have you submit an order similar to a conventional stock exchange. Most cryptocurrency exchanges let you buy and sell using three types of orders:

  • : An order to buy a set amount of Bitcoin at the current market price. This is very quick to execute and usually done in seconds.

  • Stop Order: Sets a price at which you want to buy or sell Bitcoin. This type of order can be used to sell Bitcoin at a high before it drops, but can take more time to execute than a market order.

  • Limit Order: Instructs the exchange to buy or sell Bitcoin at a specific price or better. These are visible to the market, and can take longer than stop orders to complete. This can be good for buying Bitcoin once it comes down in price somewhat.

kraken.com

Some exchanges offer even more order types than the ones listed above. As of this writing, Kraken currently offers the most order variety, including stop-loss and take-profit orders. Start with the basics listed above, and work your way up from there.

Various P2P cryptocurrency and Bitcoin exchanges also exist, but we recommend sticking to conventional exchanges to trade and buy Bitcoin, unless you know the person with whom youre making a P2P exchange.

Xrp: Why This Cryptocurrency Has Underperformed In The Last Year

Crypto Talk: Should You Buy Cryptocurrency? Why Did I Buy Cryptocurrency?

The XRP token has gained 300% in the last 12 months and is currently the seventh-largest cryptocurrency in the world.

Cryptocurrencies have been on an absolute tear in the last 18 months. Several cryptocurrencies, such as Bitcoin and Ethereum, have touched record highs in recent trading sessions, while meme tokens, including SHIBA INU and Dogecoin, have generated staggering returns for investors. But XRP, which is a native token on the XRP ledger created by Ripple, has returned just 300% in the last year and is priced at US$1.11 per coin significantly below its all-time high of US$3.1 per coin.

XRP was among the four largest cryptocurrencies during the bull run in 2017 and is currently the seventh-largest digital asset with a market cap of US$53 billion, at the time of writing. However, if you expand its timeline, XRP has returned over 20,000% to investors in the last nine years. So, a $100 investment in XRP back in 2013 would be worth around $21,000 today.

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Crypto Is Yours No Matter What

Did you know that your bank actually controls your money? It may be hard to believe, but the contract you signed has an item, that basically gives your bank the right to decline service when they see fit. Usually, banks donât invoke this right, but the fact is clear: the system is flawed at the core.

Unlike banks, which are centralized entities, cryptocurrency is decentralized. Nobody can take away your digital property: itâs physically impossible. If you feel uneasy about the traditional banking system, cryptocurrency is a great alternative. Buy in small first and create an independent portfolio that is not connected with traditional finance.

If banks go crazy one day at least a part of your funds will be protected.

Why Should I Do It

Investing in cryptocurrency involves a lot of thinking. The idea is that stressful decisions are taken out of the hands of the investor as investing in crypto involves a lot of thinking.

With recurring buys, you can put the stressful decisions into the hands of a computer that knows the market.

It will likely make your investment more profitable, too. With DCA, the idea is that the overall volatility of the target asset is reduced. As the price of crypto varies each time a periodic investment is made, its not as likely to be as volatile. But a badly timed, a big investment is more likely to get you into trouble.

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Should You Invest In Cryptocurrency

Owning some cryptocurrency can increase your portfolio’s diversification since cryptocurrencies such as Bitcoin have historically shown almost no price correlation with the U.S. stock market. If you believe that cryptocurrency usage will become increasingly widespread over time, then it probably makes sense for you to buy some crypto directly as part of a diversified portfolio. For every cryptocurrency that you invest in, be sure to have an investment thesis as to why that currency will stand the test of time.

If buying cryptocurrency seems too risky, you can consider other ways to potentially profit from the rise of cryptocurrencies. You can buy the stocks of companies such as Coinbase, Square, and PayPal or invest in an exchange like CME Group, which facilitates crypto futures trading. While investments in these companies may be profitable, they do not have the same upside potential as investing in cryptocurrency directly.

Cryptocurrency Transactions Are Confidential

Why cryptocurrency by Felicianorton

With traditional currencies issued by governments, you can privately transact or pay for something in person using physical cash.

Paper, metal, cloth, and plastic currencies make up a tiny fraction of the total amount of most fiat money in circulation. Large withdrawals of physical cash are quickly flagged and reviewed by a central authority like governments and financial system regulators.

Note: Monitoring large cash transactions is a good thing. It upholds the legitimacy of the currency and deters criminal enterprises like money laundering.

Cryptocurrency is different. It depends on well-designed math to track the exchange between two people or companies. This occurs mostly anonymously. While the ledger or list of transactions is publicly viewable worldwide, the parties exchanging cryptocurrency are more private. By definition, cryptocurrencies are held electronically in digital wallets. The owner is the holder of the private key to the wallet. The currency is exchanged digitally from mostly anonymous wallets owned by the users.

Another Note: While cryptocurrencies are intended to be anonymous, advanced forensics can uncover wallet holders identities. Some crypto projects like Monero are designed to be resistant to identity discovery.

Disclosure: This is not a paid sponsorship. The author, Data Overhaulers, nor its parent company hold any Bitcoin currency at the time of publication.

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Know How To Store Your Digital Currency

If you buy cryptocurrency, you have to store it. You can store it on an exchange or in a digital “wallet,” for example one of the crypto wallets described in our Blog post Which cryptocurrency wallet to choose. While there are many different kinds of wallets, each has its own benefits, technical requirements and security. As with exchanges, you should investigate your storage choices before investing.

The 11 Best Cryptocurrencies To Buy

Going forward, I will describe each coin, its purpose, team, liquidity, price volatility, and other metrics.

In the end, you will have a solid understanding, so that you can decide for yourself which is the best cryptocurrency to buy in 2021.

I will start with popular, well-known cryptocurrencies. Ideal for beginners.

Then, I will move on to some more advanced coins.

These coins may generate more profits, but they require you to know a bit more about them.

Plus, they are likely more volatile than the first coins on my list.

If youve already invested in top cryptocurrencies offered on platforms like Coinbase and want to expand your portfolio, then the coins at the bottom of my list might be best for you.

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Why Should I Buy Cryptocurrency

  • Cryptocurrency allows you to move away from big banks

As soon as you tell somebody youre a cryptocurrency investor, or that you use Bitcoin, the first thing youll be asked is no doubt something along the lines of why should I buy cryptocurrency or even more annoyinglytell me why I should by cryptocurrency as if youre some sort of Bitcoin salesperson.

When this happens, there are of course a million reasons for and against buying cryptocurrency, such as freedom, decentralisation, profit, technology and the future. Downsides include debt, bad investments, literally running out of money and other factors including harm to the environment . So, what do we tell these people, why should they buy cryptocurrency?

The first key reason to me is decentralisation and the idea of being able to move away from central banks and governments.

If youre a successful investor and somebody asks you this question, youll no doubt want to let them know that your investments have been good. So yes, tell them that they can make some money out of it, though dont be smug. Always remember to let your peers know that cryptocurrency investment is risky, no matter how much money youve made, your pals might not be driving away in a Porsche anytime soon as a result of it.

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You Can Start Small And Grow

Top 5 Reasons You Should Buy Cryptocurrency!

The price of big cryptocurrencies like Bitcoin reaches thousands of dollars. If you think that a large initial investment is a must â donât worry, it isnât. In reality, you can invest any amount in most cryptocurrencies.

Crypto is divisible. This means that you can buy a fraction of the coin, instead of purchasing the whole thing from the get-go. For instance, you can buy the 100,000,000th part of Bitcoin. This âbitcoin centâ is called Satoshi and 100,000 of those will set you back roughly $10.

Start with a feasible sum â whatever feels comfortable for you â and learn the ins and outs of crypto investing from there.

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Where Should I Buy Bitcoin

Each of us at CryptoManiaks has been in the crypto sphere for a good long while.

We experienced countless issues when trying to get Bitcoin. Issues with liquidity, security, and customer service.

As weve made mistakes, weve also learned and improved our cryptocurrency investment strategy.

Since this info will benefit everyone, we compiled a shortlist of the best Bitcoin investment sites.

*eToro Disclaimer: Your capital is at risk

For more information about these cryptocurrency exchanges, check out our full article: The 5 Best Ways to Buy Bitcoin.

What Is Bitcoin And How Does It Work

The concept of digital money that people send online is not that complicated in itself. After all, most of us will be familiar with transferring money from one online bank account to another.

Bitcoin is a digital asset that operates like normal currency, but without the banks taking a cut with every transaction.

Unlike normal currency, there is no physical version of the coin.

Each bitcoin is created using an encrypted code, which is a string of numbers and letters. The same equation used to create the code is can unlock it .

Other important points about bitcoin:

  • Cryptocurrencies, like bitcoin, are a form of payment that uses blockchain technology to send data in cyberspace
  • Each bitcoin must be mined
  • It is finite: only 21 million bitcoins that can be mined in total
  • Cryptocurrencies are decentralised meaning they are not regulated by a financial authority, like a government or central banks

Find out more: Is cryptocurrency a good investment?

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So Then Whats The Best Place To Buy Cryptocurrency

There are more ways to buy cryptocurrency becoming available each year âit is a lot easier now to buy cryptocurrency than it used to be. In fact, most of the ways I have shown you in this guide are very simple if you follow our instructions.

But, which way is the best way� Is it through broker exchanges like Coinbase? Through P2P websites like LocalBitcoins? Or is it simply by finding your local Bitcoin ATM?

Well, the truth is: it depends on your location and what you want/need.

If you donât live near a Bitcoin ATM, then itâs probably not the best place to buy a cryptocurrency for you.

Donât you want to use your ID? Then you might want to think about using a P2P website, like LocalBitcoins or LocalEthereum.

If using your ID isnât a problem for you and you want to buy cryptocurrency using an app on your phone, then Coinbase might the best place to buy a cryptocurrency for you.

It depends on you. I hope that this guide helped you to work out which way is the best way for you, and that you found our instructions simple and easy to follow. You should now have a good understanding of how to buy cryptocurrency. So, which way did you choose? Let us know!

Note: you should always speak to a financial advisor before making any major investments and never invest more than you can afford to lose.

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