Investing in cryptocurrency isn’t as simple as navigating an online casino. In fact, many people find themselves struggling to start their cryptocurrency journey because of how difficult starting can become. From trying to avoid making mistakes to finding information, starting your cryptocurrency journey can quickly become highly frustrating.
Come with us as we make investing in crypto and starting your crypto journey a lot easier. We do this by offering you the starting tips and tricks that only some are willing to offer.
What is Cryptocurrency?
The concept of cryptocurrency was first introduced to the world in 1990 with the release of eCash. eCash was an amazing solution for consumers who wanted to make online purchases but still wanted the privilege of privacy.
In fact, the idea took so many by storm and left major banks such as Deutsche Bank, Credit Suisse, and many more wanting to implement the idea and technology in their banks. Unfortunately, the idea was short-lived, as eCash declared bankruptcy in 1998.
The idea of having a digital currency was later revisited, reimagined, and later released in 2009 under the face of Bitcoin. Cryptocurrency is a digital means of monetary exchange that operates in a similar manner as fiat currencies, except that crypto doesn’t have a physical note. The digital currency operates through a network of computers.
When looking to make an investment, it’s always a good idea to know the type of cryptocurrency you’d like to invest in. There are nine types of cryptocurrency which include:
- Asset-backed tokens
- Utility
- Exchange
- Payment
- Security
- NFTs
- DeFi tokens
- Stablecoins
The Benefits of Using Cryptocurrency
There are so many benefits that come with using cryptocurrency, which include:
- Lower transaction fees
- Decentralized
- Safety and Security
- Making transactions from anywhere in the world
- Quicker transaction times and many more
It’s important to note that different cryptocurrencies will offer different things meaning that benefits may vary from cryptocurrency to cryptocurrency. When investing, always consider the pros and cons of every cryptocurrency you are interested in.
How to Invest in Cryptocurrency
Now that you have a fundamental understanding of cryptocurrency, we can look into how you can start your cryptocurrency journey. Below we look into how you can easily start your cryptocurrency journey.
Do Some Research
Without research, we cannot say that we have the right information. The more we research things, the more knowledge we’ll gain and the easier we’ll understand certain concepts. When starting the process of research, always look into crypto-specific content. This means looking for information that’s solely focused on the cryptocurrency you’re trying to invest in.
Look into Crypto Exchanges
One of the many mistakes that investors make is finding the wrong crypto exchange. A crypto exchange is an online platform or business that allows the investor to conduct transactions using crypto. They operate as a type of intermediary and make investing so much easier.
Some crypto exchanges may offer things such as free information, while others may offer vital information at a certain subscription fee. This information can pertain to things such as what’s happening in the crypto market or simply offer you a few tips and tricks to help make the next trade so much easier.
Some exchanges may also offer to trade on your behalf to make the process of making money easier. This is when the platform has taken to using AI technology to assist beginners or people who don’t have the time to trade to make a profit.
Always look for a platform’s legitimacy, as this can ruin your crypto experience. Check for things such as licenses, and make sure to check for reviews. Reviews will give you the insight you need to make a final decision.
Red flags include things such as poor customer support, slow transaction times, lagging websites, and many more. Looking for stars is also vital as it gives you a rough idea of how people rate the crypto exchange.
