In recent years, cryptocurrency has evolved from a side interest to a mainstream financial phenomenon. Bitcoin, the most well-known cryptocurrency, has seen its value surge from around $1,000 in 2017 to over $40,000 in 2021. However, Bitcoin is just one of many cryptocurrencies that have seen significant increases in value in recent years. Ethereum, for example, has gained over 3,000% in value in the past year alone.
With such massive returns on investment, it’s no wonder more and more people want to get into the cryptocurrency world. However, many people don’t know where to start, which crypto lending platform to use, or the best way to invest. This blog post provides an overview of why investing in cryptocurrency is a smart move and how to get started.
Why you should invest in cryptocurrency
There are many reasons why you should consider investing in cryptocurrency. Here are just a few:
Cryptocurrency is here to stay
Cryptocurrency is going nowhere. It has already established itself as a legitimate asset class, with a growing number of institutional investors taking part. As more and more people become aware of cryptocurrency and its benefits, its popularity will continue to increase.
Cryptocurrency is volatile
While volatility might seem like a bad thing at first glance, it actually presents a unique opportunity for investors. The volatility of cryptocurrency means that huge profits are possible by buying when prices are low and selling when prices are high. Of course, this also means that losses are possible if you don’t time your investments correctly. However, as long as you’re willing to take some risk, the rewards can be worth it.
Cryptocurrency is limitless
One of the great things about cryptocurrencies is that they know no borders. This makes it an ideal investment for anyone looking to diversify their portfolio outside of their home country’s currency and economy.
How to start investing in cryptocurrency
Now that we’ve looked at some of the reasons why you should invest in cryptocurrency, let’s take a look at how to get started. Here are a few steps:
Before investing any money, it is important to do your research and understand what you are getting yourself into. There are many different cryptocurrencies out there and they all have their own quirks and risks. Make sure you understand as much as you can about those you are interested in before investing any money.
How to raise capital
Crypto lending platforms offer investors a number of advantages over traditional lending services. If you are looking for a way to borrow money without selling your cryptocurrency holdings or if you want to take advantage of market opportunities that arise, a crypto loan could be for you. Make sure to shop around and compare interest rates and repayment terms before choosing a lending platform to ensure you’re getting the best deal possible.
Buy BTC or ETH
Most people choose either Bitcoin (BTC) or Ethereum (ETH) because they are the two largest and most well-known cryptocurrencies. These can be bought on exchanges like Coinbase or Kraken in your local currency (USD, CAD, EUR etc.). Alternatively, if you already have some BTC or ETH, you can use it to buy other lesser-known cryptocurrencies on smaller exchanges like Binance or Kucoin. Once again, make sure you know what you are doing before depositing money on an exchange!
Transfer your coins from the exchange
Once you have bought your desired cryptocurrencies, make sure to transfer them from the exchange to your personal wallet. This helps protect your coins from hacks and theft. If possible, use hardware wallets like Trezor or Ledger Nano S for extra security.
hold or trade
Now that your coins are kept safe in your own wallet, you can either keep them for a long-term investment or trade them frequently for short-term gains. If you decide to trade, make sure you place stop-loss orders so you don’t lose too much money if the market turns against you.
To stay updated
The world of cryptocurrency is constantly changing, so stay up to date with the latest news and developments. This ensures you don’t miss important opportunities or make costly mistakes.
Crypto investing can be daunting at first, but it doesn’t have to be. As long as you are willing to do your research and take some risk, investing in cryptocurrency can be a smart move that could pay off nicely down the road. So what are you waiting for? Get started today!
(Please note that this article is not intended as financial advice.)