How To Invest In Cryptocurrency

How To Invest In Cryptocurrency

In recent years, cryptocurrency has taken the investing industry by storm, and any investor are eager to get a piece of the pie. This is leading many investors to question whether or not they should include Bitcoin, Ethereum, or other coins in their portfolios.

Although there are many opinions on Bitcoin and other cryptocurrency, the asset is growing in popularity and is in high demand by institutional and individual investors.

One thing is certain, cryptocurrency will not disappear. As more businesses accept cryptocurrency and the blockchain technology that facilitates it, you will undoubtedly need to understand the dynamics of crypto and possibly even consider investing in it.

Before we begin, let’s get to know what Cryptocurrency is about first.

What Is Cryptocurrency

A cryptocurrency is a decentralized digital or virtual currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer network without the need for intermediaries. It uses a decentralized network of computers to manage everything, a distributed ledger called a blockchain that tracks transactions in the currency. Cryptocurrency is stored in digital wallets.

What To Consider Before Investing In Cryptocurrency

The idea of investing in cryptocurrency is highly uncertain. Although there are stories of investors making millions when investing, making a wrong choice at the right moment can lead to rapid and severe losses.

While the possibility of making riches through investing in cryptos seems attractive, it’s essential to be aware of the various characteristics of crypto. The first and foremost is that the market is highly unpredictable. An asset that rises in such a short time is also vulnerable to similar drops.

Since you now know what cryptocurrency is about, how it operates, and what to consider before investing, let’s go straight to what brought you to this page, how to invest in cryptocurrency.

How To Invest In Cryptocurrency

There are a variety of cryptocurrencies out there that possess distinct fundamental value. Investors need to be aware that a cryptocurrency may be present one day, and gone the next. This could render your investment ineffective. This is why it’s crucial to plan your approach when investing in cryptocurrencies and knowing how to manage risk.

READ ALSO:  How To Buy Bitcoins

Beginners in cryptocurrency trading may want to look at things such as transaction costs, the types of cryptocurrency available via the marketplace, and special features like educational resources and other functions that align with your goals and interests.

There are a variety of cryptocurrency exchanges to select. Coinbase, TradeStation, eToro, and Gemini among others offer a user-friendly, convenient and secure platform to hold and transfer Bitcoin.

Using an exchange is a great way to buy bitcoins. Some exchanges have their own security measures, but it’s essential to be sure that you have a secure account. This will enable you to avoid scammers. You’ll also need to verify your identity to get access to the exchange. This is an important part of learning how to buy bitcoins. If you’re serious about buying bitcoins, you should consider using an exchange that’s trustworthy, like Coinbase.

Since Coinbase is the best platform so far, I’ll recommend you to trade there. I have already written a complete guide article on how to buy Bitcoin or any cryptocurrency on Coinbase.

How To Make Money With Cryptocurrency

There are some many cryptocurrencies you can invest to make a lot of money. You can make a profit of your investment from 1-100% within few minutes to years, some currencies can even increase more than a million percentage(%) within a year. However, it’s also the other way around, as you can also lose all your investment.

To buy any cryptocurrency, what you need to look first is the Market statistics, how they are performing, such as Market cap, Volume, Circulating supply, Trading activity, Typical hold time, and popularity. All these statistics are on any cryptocurrency on the Coinbase platform.

  • Market cap is calculated by multiplying the asset’s circulating supply with its current price.

What this means:
A high market cap implies that the asset is highly valued by the market. Currently, the highest market cap asset is Bitcoin.

  • Volume: The total dollar value of all transactions for this asset over the past 24 hours. We also show the percent change in volume compared to the previous 24 hours.
READ ALSO:  How Do Beginners Buy Bitcoins?

What this means:
Increases in volume indicate that there has been more trading activity in the past 24 hours.

  • Circulating supply shows the number of coins or tokens that have been issued so far. We also show the percent of the maximum supply that has already been issued, if applicable.

What this means:
Assets with a low circulating supply, but high max supply may see significant inflation, and vice versa.

  • Typical hold time: The median time that Coinbase customers hold BTC before selling it or sending it to another account or address.

What this means:
Long hold time signals an accumulation trend. Short hold time indicates increased movement of tokens.

  • Trading activity: The percentage of Coinbase customers who increased or decreased their net position in BTC over the past 24 hours through trading.

What this means:
Increased buying activity can signal that the asset is gaining popularity.

  • Popularity is based on the relative market cap of tradable assets on Coinbase.

What this means:
Popular assets have a large market cap, which may imply enthusiasm for the asset. Less popular assets may be relatively undiscovered.

I’ll be using Bitcoin, Gala, and Shiba Inu (SHIB), some new currencies that are performing very well for the statistics.

Bitcoin (BTC)

As you can see from the above image, Bitcoin has increased 17.81%, approximately 18% in a year as shown on the performance, while the Market has increased by +91%. BTC is the most popular cryptocurrency as seen on the table as #1, out of the number of people who buy the BTC, 74% hold it, while 26% sell, and those who sell it typically hold for 81 days before selling. The Market cap is $820.5 billion with Circulating supply of 18.9 million BTC, and Volume of $18.5 billion for the past 24hrs.

READ ALSO:  Is It Safe To Buy Bitcoin?

Gala

GALA is an Ethereum token that powers Gala Games, a platform for blockchain gaming. GALA is used as the medium of exchange between Gala Games participants. For example, it can be used to pay for in-game items.

As you can see from the image, Gala has increased 28k% for the past 12 months, with Market cap of $2.4 billion, Circulating supply of 7.0 billion, with Volume of 473.9 million for the past 24hrs. Out of the number of people who buy the Gala, 59% hold it, while 41% sell. It’s the 32nd most popular cryptocurrency.

Imagine buying just only $100 Gala last year, you could have sold it for $2.8 million now.

SHIBA INU (SHIB)

SHIBA INU (SHIB) is a token that aspires to be an Ethereum-based alternative to Dogecoin (DOGE), the popular memecoin. Unlike Bitcoin, which is designed to be scarce, SHIB is intentionally abundant — with an initial total supply of one quadrillion. The Shiba Inu Token ecosystem supports projects such as an NFT art incubator and the development of a decentralized exchange called Shibaswap.

As you can see from the above image, SHIBA INU has increased over 24 million percent(%) for the last 12 months, with market cap of $17.2 billion, Circulating supply of 549.1 trillion, and Volume of $746.3 million for the past 24hrs. Out of the number of people who buy the SHIB, 63% hold it, while 37% sell. It’s the 11th most popular cryptocurrency.

Imagine buying just $100 last year, you could have sold it by $2.4 billion now.

To start trading cryptocurrency, Use this link to signup on Coinbase and get $10 sign up bonus.

If you’re still finding it difficult to purchase your first Bitcoin or any question related to Bitcoin or any cryptocurrency, we’re ready to help. Email us on info@adamabdella.com.

SHARE THIS!