With the recent success in cryptocurrency, more and more people are looking for ways to start investing. And for a good reason too. As crypto and Bitcoin, in particular, begins to prove its power, there is a higher possibility that someday traditional currency will be replaced entirely.
And the fact that Bitcoin had gone from around $1000 to $15000 in one year alone shows how much faith people have in crypto.
Privacy and Safety
Unlike traditional currency, crypto is completely decentralized. This means that it is not controlled by a single person or government, but is instead regulated by the market.
Some of the best cryptocurrencies such as Bitcoin ensure that the value of Bitcoin is determined by the people; this makes cryptocurrencies like Bitcoin, Ripple, and Litecoin so popular.
Also, cryptocurrency is almost impossible to counterfeit, meaning that the value of cryptocurrency is not negatively impacted by fake currency in the market.
Transactions are also extremely secure and anonymous, meaning you can buy and sell things without worrying that someone is watching you. These transactions can take anywhere from a couple of seconds to a few minutes.
How to Start Investing in Bitcoin and Litecoin
More traditional cryptocurrencies such as Bitcoin and Litecoin can be traded on any of the major cryptocurrency trading platforms. Coinbase and GDAX are the most popular crypto trading platforms, however.
Though both platforms are run by the same entity, they are quite different from each other.
Coinbase is perfect for beginners as the interface is extremely easy to understand. Through Coinbase you can purchase four major cryptocurrencies, view charts regarding their price trends, and create “wallets” that allow you to store and send cryptocurrencies.
GDAX, on the other hand, is a bit more complicated regarding usability but offers much more in-depth information. GDAX also has lower fees associated with selling and buying cryptocurrencies. So if you’re someone who is familiar with trading, GDAX is probably the better site for you.
How to Start Investing in Other Cryptocurrencies
Though Bitcoin was the first cryptocurrency to be started all the way in 2009, there have been many alternative cryptocurrencies that have been made. People have created alternative coins, such as Ripple and Skycoin to correct issues with Bitcoin.
Skycoin, touted as a top cryptocurrency to invest in, offers faster transactions speeds, is even more secure than Bitcoin, offers greater privacy, and is one of the emerging coins that are predicted to succeed in 2018. On top of this, Skycoin and other altcoins have a lower price point than Bitcoin, making them great investments to get in on early.
These altcoins cannot be traded on Coinbase but can be bought and sold on other crypto trading platforms. Right now, Cryptopia is one of the most popular trading platforms for these alternative cryptocurrencies.
Other Ways of Getting Cryptocurrency
If you’ve heard about cryptocurrency, you probably heard about “mining.” This is a method for people to get “free” cryptocurrency in exchange for the time and energy they put into verifying cryptocurrency transactions.
The way this works is that each transaction of a cryptocurrency like Bitcoin has a virtual record. This record of a single transaction is called a block. Blocks are then added to a chain of past transaction to create a blockchain.
To verify all of this transaction, users solve complex algorithms by using mining rigs. Usually, mining rigs take a lot of energy and verifying transactions takes a lot of time. Because of this, individuals that successfully verify a transaction are awarded a certain number of Bitcoins.
The problem with this method is that only a massive group of people working together with expensive equipment can properly mine cryptocurrency.
This method is therefore difficult for the average, everyday trader. So for you, it’s best to buy and sell crypto on any of the significant cryptocurrency trading platforms.
Cryptocurrency is definitely the future. More and more people want a decentralized form of currency that is anonymous, safe, and fast.
And with the increasing price of cryptocurrencies like Bitcoin, many more people are starting to believe in the power that crypto will have on our financial future. Technology companies like USI-Tech, Genesis Mining, and BitConnect are already enabling everyday crypto investors the unique ability to get started with Bitcoin through simple software.
So should you start investing? Of course. But always be reasonable with how much money you’re willing to put in. Though crypto is exciting, the price can change very quickly. Investing in crypto, therefore, requires a bit of patience, knowledge, and strong will.
Additionally, if you want to learn about investing your 401k or retirement plan into a cryptocurrency portfolio that can grow immensely over the next 10-20 years then read our free Bitcoin IRA guide or start a crypto account.