Monday, March 20, 2023

Cryptocurrency Investment Guide for Newbies

CryptoCryptocurrency Investment Guide for Newbies

When Satoshi Nakamoto released the original Bitcoin whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System in 2008, his vision was no less than to revolutionize the world’s financial system. He took issue with the utter control that giant corporations and government institutions had on people’s finances, thus his disruptive creation.

While cryptocurrency experts still debate the real person behind the pseudonym Satoshi Nakamoto, they all agree on one thing. Over the last couple of decades, his vision has slowly but surely come to fruition.

Bitcoin has tremendously grown in popularity. Nowadays, if someone claims they haven’t heard of the term Bitcoin, they’re probably either having a mental block or literally living in a cave.

In fact, one in five Americans has made payments on blockchain or invested or traded in cryptocurrency. That’s a considerable number—one that inspires the question among the skeptics: Is it worth investing in cryptocurrency?

Why invest in cryptocurrency?

You’ve likely heard about the rise of NFT, which is another argument in favor of cryptocurrency and the future of asset creation and management. Perhaps you’re even more curious now about what makes this financial system attractive to many. The reasons include the following.

  • Big rewards
    Truth be told, cryptocurrency investment is not for the faint of heart. Although, it’s also safe to say that it rewards those who exemplify courage. In 2017, a Bitcoin .

    Fast forward to the present, one Bitcoin will can earn you $39,000. And that value can easily double, given the right circumstances. If you’re in for quick profit, cryptocurrency investment is a game you must play. Just make sure to get as clever as you can in managing your digital assets.
  • Independence
    If you have traditional assets like bonds and real estate, you’re bound to traditional institutions like banks and governments. Those entities prove obsolete once you invest in cryptocurrency. By contrast, crypto has no intermediary. It’s just you, alongside other enthusiasts, afforded the same power and control over your financial journey.
  • Security
    Cryptocurrency operates within a platform called a blockchain. Think of it as a digital database that is not limited in terms of location and access. Every block added to the chain, which contains information on transactions, is verified by all stockholders. Erroneous or fraudulent entries get flagged.

    Meanwhile, those blocks that have successfully made it to the chain remain incorruptible. They cannot be tampered with, which equates to data security.

How to Invest in Cryptocurrency

The answer to the question we raised earlier regarding the worthiness of cryptocurrency as an investment path is a yes—a resounding one if you’re not risk-averse. If you have the mettle to contend with cryptocurrency’s fluctuations, there’s definitely something in it for you. So the next thing to do is, well, get into it.

First, you need to choose a broker or cryptocurrency exchange platform. Once you’ve decided on a platform, sign up for an account. Identity verification will depend on your chosen platform. The value of your initial investment will be considered, too.

Next, link your debit or credit card to your account. With that in place, you can start purchasing crypto. You can wire money instead if you don’t wish to link your banking accounts.

To secure your digital assets, you have two options: online via hot wallets and offline via cold wallets, which can be in the form of external devices. Cryptocurrency platforms have built-in storage systems, too, so if you trust them enough, you can leave your assets there.

As for trading, you can pursue either of the following tactics:

  • Buy and sell: Here, you quickly respond to market fluctuations. You buy when it’s affordable. You sell when it’s profitable. To pull this off, you need to be constantly updated on what’s happening in the crypto market.
  • Hold: Like gold, Bitcoin is a finite resource. It will eventually run out. Or, to put it more accurately, Bitcoin mining will have to stop. That’s because there are only 21 million mineable Bitcoins in the first place. If you want to profit off scarcity, hold on to your Bitcoin stash and sell when they run out.

Wrapping Up

If you are conscious about financial health, gauging your investment game is an urgent matter. Experts always tout portfolio diversification as a clever financial strategy. It saves you from losing all of your eggs should the basket collapse.

Once you’re ready to diversify, it’s in your best interest to consider Bitcoin earnestly. It has its devout followers, not because it’s a hip trend. Rather, it’s because it’s way more than just a trend. It has become embedded in how we do things and is here to stay, whether you like it or not. You might as well get with the program, lest you get left behind. It’s time to become your own boss, at least money-wise.

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