The post What You Need To Know About Investing In Cryptocurrency For Retirement appeared first on Smart Bitcoin Investments.
]]>The truth of the matter is that there is very rarely a sure thing when it comes to investments. We have seen the property market go through a remarkable inflation over the last couple of years, and now we are all waiting for it to come back to earth. Things have been incredibly turbulent in the markets since 2020 and it does not look as though things are going to change any time soon. In short, there are a lot of questions and very few answers.
In recent years, we have seen more and more people look at cryptocurrency as an option for investment for their retirement plans. It seems like barely a week goes by without cryptocurrency being in the news for one reason or another. Sometimes it is because the value has suddenly skyrocketed. Sometimes it is because a tech leader like Elon Musk has Tweeted something about it and the markets have reacted accordingly.
If you do not really have much of an idea of what cryptocurrency is or how it works, it can be difficult to know where to begin. There is an awful lot of jargon and information specifically related to software that it is easy to get lost in the chaos. If you are thinking about whether to invest in crypto for your retirement, here are a few things that you should know and a few tips to help you get started.
First Things First: What Is Cryptocurrency?
Let’s start with the very basics, shall we? Cryptocurrency is a decentralised, digital form of currency. That means that banks generally have nothing to do with cryptocurrency transactions and trading. Cryptocurrency is instead traded peer-to-peer. These transactions are conducted and logged online, and you have no physical assets when you buy cryptocurrency.
The decentralised element is one of the biggest reasons why cryptocurrency trading has taken off to the extent that it has. Think about the transaction fees you have to pay when you are transferring money abroad or the bank fees that need to be paid if you hire freelancers for your business. The only transaction is between you and the person sending or receiving your coin with cryptocurrency. This has also been heralded as one of the reasons why it can be so useful in countries where the security of banks is tied to the local governments.
When your investments are in cryptocurrency coins, you do not need to worry about the bank suddenly failing and losing all of your money. Cryptocurrency is also tied to tech growth, which is why the government is pushing for more industry support. While there has long been a myth that crypto is a flash in the pan, it is not going anywhere.
Are Cryptocurrency And Bitcoin The Same Thing?
This is a common question, and the reason why it gets asked so frequently is that Bitcoin gets talked about so much in the media and in pop culture. Bitcoin is a form of cryptocurrency, and it is arguably the best known. However, it is far from the only one. Ethereum is also extremely popular, but we’ll get to that in just a moment.
What Is Blockchain Technology?
If you have been reading around cryptocurrency, you have probably heard the word blockchain before. Blockchain is the technology that is used to record cryptocurrency transactions. Every time a specific coin is traded, the process is marked down on a block, and it is given a time stamp. This means that no coin can be bought or sold without some record of the transaction, and the ledger of these transactions is public.
Blockchain technology is one of the biggest reasons why so many tech entrepreneurs and leaders are so heavily invested in cryptocurrency. We are still only beginning to scratch the surface of what this technology could mean to a wide range of different industries, and it is one of the major forces driving the sector forward.
What Are The Different Types Of Cryptocurrency?
We mentioned earlier that there are many different cryptocurrencies out there, and that number is growing very rapidly. Right now, it is estimated that there are close to 10,000 different cryptocurrencies on the market. However, it is important to note that many of these currencies are not being traded by very many people. It’s easy enough to create a new cryptocurrency, it is quite another to make it something that people actually want to invest in. It is true that Bitcoin is still the biggest cryptocurrency on the market. It has been the leader of the pack since its creation, and it will probably continue to be so for some time yet.
However, there is a key difference between Bitcoin, a cryptocurrency created purely as a currency, and Ethereum. Ethereum is the second-largest cryptocurrency out there and a big reason for that is the network that the currency runs on. Ethereum has attracted a huge amount of interest from some of the biggest software innovators in the game, who are drawn to the potential for its blockchain technology. After Ethereum and Bitcoin there is something of a drop-off, but other coins that have a lot of popularity include Cardano, Litecoin, Stellar and Polkadot.
How Do I Buy Cryptocurrency?
If you want to add one of these cryptocurrencies to your portfolio, the first step will be signing up to a cryptocurrency exchange. There are a lot of different cryptocurrency exchanges out there, but the basic thing to know is that they connect coin traders. However, it is also important to remember that every exchange may have its own specific requirements.
You will need to be able to verify your identity before you register with any reputable crypto exchange (your passport or driver’s license, for example), but you will also need to make sure that your platform of choice supports your country and your currency. If you want to learn more about how to buy Ethereum, visit Wealthsimple. Their detailed guides and easy-to-use software help you get to grips with a wide range of financial options.
What About Safety And Security?
One of the biggest myths out there about cryptocurrency is that trading it is inherently unsafe, but nothing could be further from the truth. Security is at the forefront of every cryptocurrency transaction, and the fact that they are recorded on blockchain is just one of the things that makes it very hard for criminals to hide. Cryptocurrency transactions also require two-factor authentication, which means that the chances of someone being able to trade your coins without you knowing it are very slim indeed.
Now, it is very important to make a distinction between the lack of inherent risk when dealing crypto with the very real risks that we all face when conducting financial business online these days. We have seen a massive boom in cybercrime statistics over the last couple of years. Everyone from the owners of the world’s biggest businesses and government institutions to pensioners have come face to face with cybercrime in recent months. Governments around the world have announced that they are taking measures to crack down on this epidemic, but it does not appear that this trend is going anywhere yet. There are steps that you should take if you want to make sure that you are looking after your information and your finances.
What Are Hot And Cold Wallets?
Crypto wallets are the safest way to store your cryptocurrency. A hot wallet is the best one to use if you are actively trading, as it is connected to the internet. In essence, a hot wallet is a piece of software that allows you to access, store or trade your cryptocurrency. You will need your own private “key” to access any coins that are in your hot wallet. There are many kinds of hot wallets on the market, so if you are looking for one, it is well worth doing your research to make sure it is up to the security standards that you are happy with.
A cold wallet is safer than a hot wallet because it is less accessible. Whereas a hot wallet is an application on your computer, a cold wallet is a physical USB drive that you can transfer your crypto coins onto. You can unplug it from your computer to remove the risk of anyone hacking in and stealing your coin. If you want to make sure that you are being as safe as possible without losing any flexibility while you are trading, then it would be worth investing in both a hot and a cold wallet.
Is Cryptocurrency Volatile?
The short answer to this question is yes, cryptocurrency values can be extremely volatile. Of course, this is one of the biggest elements of its appeal to a lot of traders. These currencies are capable of seeing enormous increases in value at very little notice. However, the opposite is true, and you could see your investment tumble in seconds. If you want to make sure that you are minimizing the risk to your wallet, you should start by doing as much research as you can on any coin you are thinking of investing in.
The principle is the same as any other stocks that you might be investing in. If you don’t understand what it is and don’t know its history, then you should remedy that before you put any of your money into it. You should also beware of any so-called crypto gurus who are trying to sell you on a coin that you have never heard of. There are always going to be people out there who want to make a quick buck by convincing people to invest in their scheme, only to vanish off the face of the earth as soon as they feel like they have earned enough, and cryptocurrency is no different.
The next thing to remember is that you should not make any sudden rash decisions. This market is volatile, and just because it is down one minute, does not mean that it won’t be up the next. It is always important to listen to your gut, but make sure that you listen to your head. Finally, do not invest in cryptocurrency if you have very little time to dedicate to monitoring the markets. If you do not have several hours in the day to do this, then it would be sensible to invest in the better known, more reliable coins.
Should I Add Cryptocurrency To My Retirement Investment Portfolio?
The answer to this question largely depends on your response to all of the information above. It is very clear that there are profits to be made from investing in cryptocurrency, and that those investments can be very sizable indeed. However, there is a lot of learning to be done if you want to do it right, and the volatility of their value is not to be underestimated.
If you are unfazed by this, cryptocurrency could be a valuable addition to your portfolio. But the best idea when banking on your retirement is always to diversify. Investing all of your savings into cryptocurrency right off the bat might be asking for trouble. Instead, start small and see how your initial investment pays off. As you get to grips with it, you may want to put more into this.
The post What You Need To Know About Investing In Cryptocurrency For Retirement appeared first on Smart Bitcoin Investments.
]]>The post 10 Cryptocurrency Trading Sites appeared first on Smart Bitcoin Investments.
]]>Firstly we will discuss the key components looked at when creating this list as to give you as reader a better understanding and freedom of choice to make your own decision.
Selecting a cryptocurrency exchange to purchase your first cryptocurrencies can be a daunting and overwhelming process.
After all, there are cryptocurrency trading platform in today’s market, with 24-hour trade volume in the billions. So, how do you make your choice?
What To Look For When Choosing A Crypto Trading Platform
Here are a few attributes to look at while choosing your cryptocurrency trading platform of choice:
- Know Your Customer (KYC) and Security – This is an implementation these sites have where users on the site needs to submit person information. This shows a level of trust and that no money laundering or any other illegal actions is allowed on the site. This creates a safe place to trade and shows that the exchange is following the correct legal procedures. Sites with added security levels such as 2FA (2 Factor Authentication) also adds another level of security protecting the user themselves.
- Fiat exchange – It is important that the exchange on which you are trading allows for fiat deposits and withdrawals. This will allow users to exchange their own national currencies to and from the site making it easy to cash out profits and eliminates the effort to transfer it to another site where it could be then be withdrawn.
- Volume – Volume is a very important aspect of a good cryptocurrency trading site. Volume in this sense means the amount of people trading on the site, thus the amount of liquid assets that is traded. With low volume trading sites it is difficult to buy and sell cryptocurrencies, which most of the time leads to the trader setting for a too high or too low price. Some exchanges have so little volume that nobody wants to buy your asst which could lead to your asset being stuck in that site. This happens when the exchange stops withdrawals in desperation trying to keep the volume of the site up and growing. This is a big red flag for ay trading website.
- Fees – The fees of trading sites could be of great importance for a cryptocurrency trader and not so important for a cryptocurrency investor. If you plan on trading a currency in the short term, it is important to trade on a site with low transaction and trading fees as these could easily make your trade profits less worthwhile.
- Selection of digital assets – This is a tricky one. It is optimal that a cryptocurrency trading site does not have too much or too little digital assets available to trade. With too little to trade, it is less likely that the site will have a lot of customers and it in some way also forces a very unstable portfolio as you will only have that asset. Too much digital assets provided on a trading site gives the idea that almost any asset can be listed on the site, making the risk of investing in an asset with no future promise a lot more likely.
There is obviously more factors to keep in mind when consider a cryptocurrency trading site such as the prices of the assets, leverage options and the team transparency, but the above 5 seems like a good enough consideration for a good site.
The article will now discuss 10 cryptocurrency trading sites with their score in each of these 5 factors briefly discussing them.
10 Cryptocurrency Trading Sites
Etoro
| Website: | etoro.com |
| CEO: | Yoni Assia |
| Headquarters: | London, United Kingdom |
| Founders: | David Ring, Ronen Assia, Yoni Assia |
| Founded: | 2007 |
| Customer service: | Knowledge Base |
Etoro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Since 2007, Etoro has been democratizing traditional money management in order to open the financial markets to everyone, everywhere.
Deposits may be made via online bank transfer, wire transfer, e-wallet (PayPal, Skrill, or Neteller), or bank card. Customers may withdraw funds from their Etoro account at any time, and without fees from the platform (though charges from your bank may apply).
Minimum first time deposit for US users is $100 USD and $200 USD for most countries.
Etoro accepts deposits in USD, EUR, GBP, and AUD. Watch this video to get a step-by-step guide on how to buy bitcoin on Etoro.
Pros
- Diverse selection of markets
- Excellent reputation
- User-friendly interface
- Great customer support
- Low fees
Cons
- Bitcoins can not be withdrawn
Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more. https://med.etoro.com/B21058_A96320_TClick.aspx
Crypto assets are unregulated & highly speculative in some EU countries. No consumer protection. Capital at risk.
Crypto investing is offered by eToro (Europe) Ltd. and custody is provided by eToro Germany GmbH. Your capital is at risk.
eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
Binance
| Website: | binance.com |
| CEO: | Changpeng Zhao |
| Headquarters: | Malta, European Union |
| Founders: | Changpeng Zhao, Yi He |
| Founded: | 2017 |
| Customer service: | Knowledge Base |
Binance is a first-rate exchange for experienced traders who are looking for a respectable cryptocurrency marketplace to perform real-time trades.
With over 166+ cryptocurrencies available, both beginners and advanced traders have a myriad of tools and pairs available to them within one powerful trading platform. Through Binance P2P, more than 700 payment methods are supported.
Binance accepts deposits in over 50+ currencies including USD, EUR, JPY, KRW, GBP, AUD, RUB, and many more.
Pros
- Trustworthy management
- High volume exchange
- Low fees
- A large number of cryptocurrency pairs
- Global support
Cons
- Few payment options
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
Coinbase
| Website: | coinbase.com |
| CEO: | Brian Armstrong |
| Headquarters: | San Francisco, California |
| Founders: | Brian Armstrong, Fred Ehrsam |
| Founded: | 2012 |
| Customer service: | Knowledge Base |
| More information: | Read Review |
Coinbase is the dominant U.S. cryptocurrency exchange that is known, used and trusted by millions of customers worldwide. The world-class user interface is both colorful and accessible and there is even a mobile app available for Android and iOS.
Coinbase accepts deposits in USD, EUR, GBP, CAN, AUS, and SGD.
Pros
- Established reputation
- User-friendly interface
- High liquidity
- Large purchasing limits
- Strong security
Cons
- Support takes time to respond
- Slow bank transfers
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
CEX IO
| Website: | cex.io |
| CEO: | Oleksandr Lutskevych |
| Headquarters: | London, United Kingdom |
| Founders: | Oleksandr Lutskevych, Dmytro Kalynovskyi, Victoria Polyakova, Peter Ivanov |
| Founded: | 2013 |
| Customer service: | Knowledge Base |
| More information: | Read Review |
CEX.IO is a multifunctional cryptocurrency exchange that is trusted by millions of customers worldwide and allows users to buy bitcoin with a credit card or debit card seamlessly.
CEX.IO boasts multiple payment options (SWIFT, SEPA, ACH, Faster Payments), 24/7 customer support, and proven platform stability.
CEX.IO accepts deposits in USD, EUR, GBP, and RUB.
Pros
- Established and trustworthy
- Supported worldwide
- Low fees
- Simple credit card purchases
- Clean user interface
Cons
- Verification procedure requires private information
- Lengthy verification time
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
Kraken
| Website: | kraken.com |
| CEO: | Jesse Powell |
| Headquarters: | San Francisco, California |
| Founders: | Jesse Powell |
| Founded: | 2011 |
| Customer service: | Knowledge Base |
Kraken is the world's largest Bitcoin exchange and offers a vast selection of cryptocurrencies and internationally accepted funding methods.
Kraken Pro provides individual and institutional investors with advanced real-time trading and charting tools.
Kraken accepts deposits in USD, EUR, CAD, GBP, JPY, and CHF.
Pros
- Respectable reputation
- Global support
- Reliable customer support
- Tiered verification
- Affordable fees
Cons
- Few payment methods
- Sophisticated UI
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
Bittrex
| Website: | bittrex.com |
| CEO: | Bill Shihara |
| Headquarters: | Seattle, Washington |
| Founders: | Bill Shihara, Richie Lai, Rami Kawach |
| Founded: | 2013 |
| Customer service: | Knowledge Base |
Bittrex is one of the largest cryptocurrency trading platforms in existence and serves customers all over the world.
Bittrex currently accepts deposits in USD for fiat trading only.
Pros
- A large number of cryptocurrency pairs
- Strong security
- Privacy
Cons
- Customer support
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
Bitstamp
| Website: | bitstamp.net |
| CEO: | Nejc Kodrič |
| Headquarters: | London, United Kingdom; Luxembourg |
| Founders: | Nejc Kodrič, Damijan Merlak |
| Founded: | 2011 |
| Customer service: | Knowledge Base |
Bitstamp is a bitcoin marketplace based in the European Union and has been around since 2011.
Bitstamp offers clients 24/7 support and a multilanguage interface that can be used by everyone around the world.
Bitstamp accepts deposits in USD and EUR.
Pros
- Supported globally
- High-level security
- Affordable transaction fees
- Reliable customer support
Cons
- Few payment methods
- High deposit fees
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Great | Low | High | High |
Crypto.com
| Website: | crypto.com |
| CEO: | Kris Marszalek |
| Headquarters: | Hong Kong |
| Founders: | Kris Marszalek, Rafael Melo, Gary Or |
| Founded: | 2016 |
| Customer service: | Knowledge Base |
Crypto.com is a payment and cryptocurrency platform that empowers users to buy, sell, and pay with crypto.
Crypto.com accepts deposits in USD, GBP, EUR, SGD, CAD, AUD, NZD, HKD, TWD, NOK, SEK, DKK, CHF, PLN, ZAR, KES, RUB, BGN, RON, ILS, SAR, AED, HUF, CZK, TRY and BRL.
Pros
- Diverse selection of currencies
- Crypto.com Visa debit card
- User-friendly interface
- Great customer support
- Low fees
Cons
- A relatively new player in the market, with a shorter track record
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
BitPanda
| Website: | bitpanda.com |
| CEO: | Eric Demuth |
| Headquarters: | Vienna, Austria |
| Founders: | Christian Trummer, Eric Demuth, Paul Klanschek |
| Founded: | 2014 |
| Customer service: | Knowledge Base |
BitPanda has been in operation since 2013 and is based in Vienna, Austria. The BitPanda platform is straightforward and easy to use for beginners.
BitPanda accepts deposits in EUR, USD, CHF, and GBP.
Pros
- Low fees
- Multiple payment methods
- Easy verification process
- Dependable and trustworthy
Cons
- Available to European countries only
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Excellent | Low | High | High |
Luno
| Website: | luno.com |
| CEO: | Marcus Swanepoel |
| Headquarters: | London, United Kingdom |
| Founders: | Carel van Wyk, Marcus Swanepoel, Pieter Heyns, Timothy Stranex |
| Founded: | 2013 |
| Customer service: | Knowledge Base |
In operation since 2013, the Luno platform enables users who reside in Europe the ability to buy bitcoin using bank transfer, debit card or credit card after depositing funds.
Luno accepts deposits in EUR, IDR, MYR, NGN, SGD, ZAR, and ZMW.
Pros
- Trusted throughout Europe
- Strict security
- Free deposits
Cons
- Withdrawal fees
| Reputation | Fees | Privacy | Limits |
|---|---|---|---|
| Great | Low | High | High |
How Does Cryptocurrency Trading Work?
Just like trading the Foreign Exchange (Forex) market, cryptocurrency trading is the buying and selling of currencies to generate a profit. In its simplest form, you’re betting on the changing price difference between two different currencies. These funds are then used to place buy and sell orders against another currency. You make profits from selling, or closing orders at a higher price than you bought.
Trading cryptocurrencies works exactly the same as the forex market trading, but instead of selling and buying fiat currencies, such as euros or US dollars, traders buy and sell cryptocurrencies, such as Bitcoin, Ethereum or Litecoin. You will usually exchange a fiat currency into a cryptocurrency and then, at a later date, back into a fiat currency, although there are traders and exchanges that allow cryptocurrency-to-cryptocurrency trading.
For example, you might speculate on the change of price between the Bitcoin and the US dollar.
If you think Bitcoin will increase in value you might enter a “Long” position. This means you buy Bitcoin as you believe that it will increase in value relative to the US dollar.
If you think Bitcoin will decrease in value you might enter a “Short” position instead. This means that you sell Bitcoin as you believe that it will decrease in value relative to the US dollar.
Learn How To Trade The Cryptocurrency Market
You may or may not have some experience in trading the Stock or Forex (FX) markets, but the Cryptocurrency market is a whole different ‘game’. It is advised to study the cryptocurrency charts first before starting to trade them. Do not to assume that your skills attained by trading other markets will be sufficient and that your trading strategies will work the same in the crypto market. Traders often assume that skills and trading strategy’s developed in alternative financial markets can be applied to others, you need to take time and research each market respectively.
If you are a new trader in general, it is advised that you either start with a demo trading account and train yourself, or sign up to our FREE online trading academy which is designed to help you prepare for success in the financial markets.
It is important to find a strategy for each trade you will make and apply these strategies in the cryptocurrency market. We have spent years developing ours, it may seem daunting at first but once you pick up the basics, picking up the rest of the knowledge can become a walk in the part.
Conclusion
Cryptocurrency trading is still in its infant stage, if you can stick out the learning curve, you will be glad you started. Always stay calm and do not attach emotions to trading, have a strategy and follow it. Stay open-minded and do not let your emotions stop you from making trades.
In conclusion to this article, we hope that you now have a better overview of what to look at in a cryptocurrency trading site before investing any money into it alongside helping you with your decision with this in detail rundown of 10 very popular crypto trading sites.
The post 10 Cryptocurrency Trading Sites appeared first on Smart Bitcoin Investments.
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