How To Invest In Cryptocurrency 2022
Dit artikel is geupdate op : 07/02/2022
How To Invest In Cryptocurrency 2022
Dit artikel is geupdate op : 07/02/2022
What Is Cryptocurrency? - How To Invest In Cryptocurrency 2022
What Is Cryptocurrency? - How To Invest In Cryptocurrency 2022
Cryptocurrency is a digital currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. It’s become popular in the last decade, with Bitcoin becoming the leading digital currency. Crypto has become a hot property in the last few years in particular, as dollars have flown into the asset, pushing up prices and drawing even more traders to the action.
A defining feature of cryptocurrencies is that they are generally not issued by any central authority, it’s not backed by either a government or a company. Its worth is determined solely by what traders will pay for it. Rendering them theoretically immune to government interference or manipulation.
The big difference between the other investments and cryptocurrency is that they can be very volatile. Unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of cryptocurrency to quickly drop a lot. So keep in mind even though crypto can be a great investment and will have some risk in it.
In this guide
In this guide
How to invest in Cryptocurrency
How to invest in Cryptocurrency
Investing in cryptocurrency in 2022 is quite easy. You just need to know the most important steps. In this article, we will explain the 3 steps needed to start investing in crypto for beginners.
Step 1: Choose what Cryptocurrency
Step 1: Choose what Cryptocurrency
First, you have to think about which cryptocurrency you want to buy. If you know what cryptocurrency you are interested in you can skip this step and go to step 2.
One of the real complications of cryptocurrency is that there are a lot of cryptocurrencies that have come and gone already. It is really important to do your research first, before investing in cryptocurrency. That is why we will give you some of our recommended picks.
Some of our recommended picks are:
Bitcoin (BTC)
Bitcoin is the most widely available cryptocurrency, and its price fluctuates a lot, attracting many traders. For example, from a price below $10,000 a coin at the start of 2020, Bitcoin soared to around $30,000 at the start of 2021. Then it doubled from there soon after.
Ethereum (ETH)
Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH), and its own programming language, called Solidity. As a blockchain network, Ethereum is a decentralized public ledger for verifying and recording transactions. The network’s users can create, publish, monetize, and use applications on the platform, and use its Ether cryptocurrency as payment.
Cardano (ADA)
Cardano is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Ethereum are limited by the infrastructure burden of growing costs, energy use, and slow transaction times.
Binance (BNB)
Binance Coin is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. Binance coin initially ran on the Ethereum blockchain with ERC 20 standard but has since become the native coin of the Binance chain.
See our best crypto picks to date.
Step 2: Choose What Platform To Buy Cryptocurrency
Step 2: Choose What Platform To Buy Cryptocurrency
One of the big disadvantages of buying cryptocurrencies is that you can’t get them in all the usual financial places. Banks don’t offer them and neither do investment brokerage firms. For the most part, you’ll be limited to buying, holding, and selling cryptocurrencies on dedicated cryptocurrency exchanges. But don’t be discouraged to stop investing in crypto, the current leading crypto exchanges are easy for anyone.
Our recommended crypto exchanges are:
Coinbase
One of the best exchanges for beginners is for example Coinbase. Coinbase started with the idea to help anyone, anywhere, so that they can easily and securely send and receive Bitcoin. Today, Coinbase offers a trusted and easy-to-use platform for accessing the broader crypto market.
To start investing in cryptocurrency on Coinbase: www.coinbase.com
Binance
Binance is one of the best cryptocurrency exchanges. It has lower trading fees than most other exchanges. It offers many trading pairs between different cryptocurrencies and is on par with other leading exchanges. Binance has currently over 200 different altcoins to trade on their platform. It is also the company of the famous Binance Coin (BNB) that we explained before. Binance is easy to use and it has its own app on mobile.
To start buying cryptocurrency on Binance: www.binance.com
Etoro
eToro is also one of the most advanced crypto investment platforms. It offers unique investment options like its CopyTrader Technology. With this feature, you can copy the more successful crypto traders’ investment strategies on the platform.
To start buying cryptocurrency on eToro: www.etoro.com
Step 3: Follow The Steps Of The Exchanges
Step 3: Follow The Steps Of The Exchanges
After choosing the exchange you want to use to invest in crypto. You just have to make an account on the chosen exchange and follow the given. You are now done with the basics of investing in cryptocurrency!
Step 4: Secure Your Crypto
Step 4: Secure Your Crypto
Keeping your crypto secured after you buy it is very important. This is especially true if you decide to use your cryptocurrency to buy products or if you have a hot wallet. Basically anytime you use crypto online, you need to make sure your investment is secure.
So for every exchange use a special password with capital letters, symbols, numbers etc. Also, don’t forget to activate the second authentication on all of the exchanges.
Bottom Line
Bottom Line
Crypto has had a lot of ups and downs over the years. You can follow the live charts at coingecko.com. The price-performance of most crypto can be seen from the beginning to the present. No matter where or how you decide to buy, sell and store your cryptocurrency, be prepared for huge volatility. Cryptocurrencies are far less predictable than traditional investments. And with any investment, it’s key to remember that what goes up can come down again.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.