Just like everything else in life, you do not have to make money in business without knowing what you are investing. Do not get caught in the fear of losing and jumping into a car without enough information. So, before we investigate how to invest in Cryptocurrency, let’s take a look at what it really is, the problem it solves, and how it works.
What is the Problem of Cryptocurrency Solutions?
When you go to a grocery store or mall to shop, you have two payment options, mainly. You can use cash, but who wants to bring a bunch of bills or coins when they can just slide their cards and get the same result? Well, according to the 2016 consumer payment survey by Total System Services (TSYS), 35 percent of consumers prefer to use their debit card, 40 percent prefer credit. Only 11 percent of consumers who participated in the survey said that they prefer to use cash so yes, not much.
But why do we prefer to use our bank card instead of cash? Well, for starters, it’s easy. When you hand over your card to the cashier, he will contact the bank check if you are good for the money. If the answer is affirmative, payment is accepted, and the bank records the agreed amount transfer from your account to the store and takes a deduction to facilitate the transaction. But what if you want to remove the bank from the equation?
How Cryptocurrency works
You will find someone (or a group of ‘someones’) who can be trusted to keep these records and not cheat or change them in any way, and that’s where Cryptocurrencies come in. Cryptos is an entry in a global big book called Blockchain. Blockchain records all Cryptocurrency transactions. The idea behind Blockchain and Cryptocurrencies is to erase transaction records.
Instead millions of copies of the ledger are distributed worldwide where each owner of each copy keeps a record of each transaction. When you buy something using Cryptocurrency, the store asks all record keepers if you are good for the money and if they all say you have enough, they will let the store know, and each will record the transaction. If someone tries to change their record, it does not match the rest of the payment copy will not be accepted.
A bookkeeper – randomly selected – will be rewarded with a number of newly created cryptocurrencies after each transaction is completed. Cryptocurrency is a digital currency; it only exists electronically. Bitcoin is the most popular Cryptocurrency. It is decentralized, meaning it has no regulatory body or central issuing authority. Basically, this means that no person or organization:
• Figure out how much Bitcoin is generated.
• Decide on the time to make more Bitcoin.
• Monitor Bitcoin tracks.
• Investigate fraud.
Bitcoin first came into the financial world in 2009. Back then; they have no value seen in it. Dozens of Bitcoins may be worth a bunch of money. As of March 2018, an average of Bitcoin reaches around $ 10,000. Bitcoin bookholders, also known as miners, get paid when they add new blocks of transactions. Now that you have an idea of how Bitcoin and other cryptocurrencies work, how can you make money from them? There are various ways of crypto investing platform which can benefit investors for a certain amount of time.
Invest in Cryptocurrency
Why invest in cryptocurrency in the first place? Well, there are many reasons to invest in cryptocurrency, but three of them stand out. First, you will invest in cryptocurrency because you love and understand technology. Second, you support a free and hard money vision for the whole world, the social vision behind cryptocurrencies. Finally, we all anticipate the inevitable fall of the dollar empire, and you certainly want to protect your net worth against it.
Where did you start?
Your first step is to open an account on any single exchange. A cryptocurrency exchange is a website where you can buy, sell, or sell cryptocurrency as a traditional currency exchange such as the US dollar or other digital currencies. Opening an account will give you access to luxury trading tools so you can trade professionally. Some of the most popular Bitcoin exchanges are:
• Kraken. Both beginners and advanced traders can use this exchange. It offers margins, leverage, stop loss, and other advanced trading and ordering tools. Deposit and withdraw money very quickly.
• Critical. Headquartered in Florida, USA, Cryptsy launched in 2013 and is one of the fastest growing cryptocurrency exchanges. Here, you can trade Bitcoins, Altcoins, Litecoin, Mazacoin, Dogecoin, etc.
• Coinbase. Based in San Francisco, California, Coinbase is a top Bitcoin exchange that also acts as a Bitcoin processor. It is a wallet you can use to store, spend, buy, sell, and receive Bitcoins.
• Bitfinex. Bitfinex launched in 2013 and has since grown into one of the largest exchanges if trading volume (US dollars) is anything to go by. You can sell or buy Darkcoins, Litecoins, and Bitcoins. Bitfinex offers liquidity swaps, short sales, margin trading and other advanced trading tools.
• BTCChina. Launched in 2011, BTCChina is one of the oldest and largest cryptocurrency exchanges in the world. Notably, it supports trading done in Chinese currency for both Litecoins and Bitcoins. Withdrawals and deposits in US and Hong Kong dollars are also accepted.
Connect your new crypto trading account to your bank account and transfer some money. Remember to start small and work your way up. Do not be greedy; it is a process. For example, deposit $ 500 into your exchange account – Kraken and Coinbase are recommended for beginners – and start trading. Get two big, say take $ 500 and split it in half for Bitcoin and Ethereum.
Continue to research and educate yourself on all cryptocurrencies to understand all the variables that manipulate prices. Try talking to experts and public figures attached to these Cryptocurrencies, understanding what is going on internally. Use the information you have collected to republish your investment. Steps baby, who knows, today your investment is worth $ 500, tomorrow it could be $ 10,000 and a few hundred thousand in the next few weeks.