This is your beginner’s guide for how to invest in cryptocurrencies and what should we look before investing. I’m a big supporter of crypto currencies and I’m also a big fan of the stock market. We will also see how investing in crypto is a better choice?
Understanding the basic
You might not know how internet works but when it comes to sending an email or buying something and have it shipped to your home, you can do that with ease. The point is that, you do not need to understand the technology behind the internet, you just need to know how to use the internet. It’s the same concept with cryptocurrencies, at least when you’re investing with cryptocurrencies.
Your whole goal is to buy a cryptocurrency for a low price and then sell it later for a higher price. You’re trying to buy low, sell high and then make some money. If a five-year-old can turn on a tablet, log on to the internet, go to you tube and watch a video without understanding the technology behind the internet then you can do the same thing without understanding the technology behind cryptocurrencies.
You can set up a brokerage account buy a cryptocurrency for a low price and then sell it later for a high price. The thing is that a 5 year old, they’re not going to just wake up one day and know how to turn on a tablet, go on the internet and do all that by themselves. They need to be shown the way, so that’s what we’re here to do. We’re here to show you the way, here’s what you need to know:
Bitcoin is the largest and most famous cryptocurrency and there’s thousands of cryptocurrencies, it’s just like the stock market. In the stock market, there’s thousands of companies that are on the stock market and crypto currencies there’s good and bad cryptocurrencies just like in the stock market there’s good stocks and bad stocks. Today we are not going to talk about good or bad crypto currency but today we will focus more about getting you started investing in cryptocurrencies
How to start investing in crypto?
First step is you need to exchange your US dollars for Bitcoin, the most popular way to do this is to use a website or an app such as coinbase. If all you’re looking to do is, invest in Bitcoin then you just sign up with Coinbase and change your US dollars for the Bitcoin and then you’re good to go.
What should be done to invest in a different cryptocurrency other than Bitcoin.
If you want to invest in another cryptocurrency besides Bitcoin, this is when things get a little bit more interesting. Let’s take a different cryptocurrency as an example, let’s call it Neo coin. There actually is a neo coin, so let’s say you want to get a neo coin. You want to invest in neo, if that’s the case then you cannot go from US dollars straight into neo. What you need to do is, get US dollars swapped into Bitcoin and with that Bitcoin, you need to exchange the Bitcoin for neo. So if you want to take US dollars straight to neo, you cannot do that. You need to use Bitcoin as the intermediary. in order to do so, you’re going to need an account on a crypto exchange. Coinbase for example is a place to exchange your US dollars for Bitcoin.
Coinbase will also have other cryptocurrencies but they will be the biggest and most name-brand cryptocurrencies. If you’re going to be looking for other obscure cryptocurrencies and as we mentioned, there’s thousands of crypto currencies, then you need to head to an exchange, a crypto exchange. The way you do that is, once you have Bitcoin on your coin base account you need to send that Bitcoin to your crypto exchange and how you do that is: you simply just transfer the Bitcoin on your coinbase account to your crypto exchange accounts.
Is Investing in cryptocurrencies risky?
Cryptocurrencies can be risky but it’s a situation of high risk and high reward. If you’re looking for something more suitable with a less risky investment then please read our other article about the Crypto market and investing for beginners in the cryptocurrencies. We have reviewed some most advanced robots used in crypto trading. However, whether you’re investing the in cryptocurrencies or stock market please make sure you do your homework, your research, to decrease the chances that you’re getting yourself into bad investments.
How much capital is required to get started in crypto currencies?
To get started in cryptocurrencies , you do not need much money and I know because I’ve experience in the stock market and in the crypto markets and what I can say is that, you need less money to get started in the crypto world, that you do in the stock market world . I’ll give you an example: there’s some cryptos that are very high quality, crypto project script of companies that are $0.10. If you’re going to put that into perspective with the stock market, if you’re looking for a stock that’s 10 cents in the stock market, it’s most likely going to be a bad risky investment. Therefore I would say from my opinion that you need less capital to get started in the cryptocurrency investing scene. Also you can even get started with as little as$25 in the crypto world. If you try to get your stock market investing career with $25, that just sounds impractical but with cryptos that actually is possible.
Which Coin Should I buy?
This is a scenario of risk versus reward. Bitcoin is the most famous and the most stable cryptocurrency in general. If you’re looking for a high risk and high reward then you would be better off looking for smaller and more obscure cryptocurrencies. But if you’re looking for more stability the Bitcoin would probably be your best bet. But just like, as it is in the stock market world you might want to consider diversification, to have a more stable portfolio. But regardless, if you are going to be looking for other cryptocurrencies, please make sure, you do your homework because unfortunately there’s a lot of scam projects, a lot of scam cryptocurrencies out there. So please be careful.
How do I research which coins to buy?
When you’re doing your homework on what cryptocurrency to invest in, you should look for the white paper. The white paper is a summary of the cryptocurrencies project, how it functions, who the management is and the mission. It’s basically a mission statement that tells you the goals and objectives of that cryptocurrency. So please look and read the white paper.
Where can I get started?
To get started let’s see what you’re trying to achieve first. So if you’re only trying to get Bitcoin or the more popular cryptocurrencies then all you need is an account with coinbase and then you’re good to go but if you want a wider selection of cryptos then you need a crypto exchange accounts.