All you need to know to get into the cryptocurrency industry successfully and rack up the kinds of profits that will allow you to share in the trillions of dollars of new wealth.
Cryptocurrency made into the limelight back in 2009 following the creation of Bitcoin. Bitcoin attracted significant attention from investors and the media after hitting a $266 price tag in April 2013. Cryptocurrencies made their mark in history in 2017 after the market capitalization shot up by 4000%. The market cap then was at about $21 million as of March 2017, compared to its current $454 billion.
Following the great market success, other altcoins were created, such as Ethereum, Litecoin, XRP, Chainlink and many more. More than 1500 altcoins have been made in less than five years. Many experts are now advising investors to invest in the crypto market rather than in the traditional stock market.
The top question asked now is if to invest in crypto or not. Will crypto grow to be used even more than fiat currencies, or is crypto just a passing trend? The answer is yet to be known. However, market analysts and experts see a great future with crypto.
What the future holds for cryptocurrency
The topic of crypto’s future has aroused varying views and predictions. Some people claim that crypto’s stamina will not last, while others think crypto is here to stay. Saying for sure how crypto will be doing in the future is challenging; however, crypto popularity seems to be catching on fire.
The Corona pandemic aroused turmoil in the financial market; however, many are optimistic that 2021 will bring forth greener pastures.
Lorenzo Pellegrino, CEO of Skrill, Neteller and Income Access, says that the enhancement of infrastructure enabling crypto does not seem to slow down. This is despite markets crashing and failing.
For many industry professionals, the trade has grown to be stable, more mature, and ready to expand. Crypto’s birth came as just an idea worth virtually nothing. It has grown to occupy a market capitalization of hundreds of billions of dollars.
Expert opinion is that making investments in the field is for the better.
Tips for investing in cryptocurrency
Digital asset currencies have grown in strength and popularity to surpass fiat currency. They are way faster, portable, transparent, and low transaction fees. These are what to look at in crypto:
Buying or selling crypto has become a relatively fast and easy procedure. Brokerages and exchanges are open 24 hours a day, and as it global, there are buyers and sellers nearly every second. Always opt for wider used crypto and exchange if you need your funds in urgent situations. If you invest in unpopular crypto, you might incur liquidity issues taking hours or even days to cash.
Most crypto and exchanges provide their transactions to all for transparency. There are, however, some cryptos that have been involved in exit scams. After raising funds, the developers disappear without a trace. This also falls as the previous; always opt for crypto with deep roots and avoid these new ones.
In any transaction, there are fees involved. There are relatively low transaction charges in the crypto industry compared to others. However, in trading, you could be charged a fee even after making a loss in a trade. To minimize the effect brought about by this, many exchanges are now offering registration and referral bonuses as a means to earn.
Other factors should come into play when choosing crypto or exchange to trade-in. These are, for instance: customer response services, minimum investment barriers, among others.
How and where to buy crypto
If you are new or having difficulties with where you can buy or trade on a particular crypto, this is your article. Many brokerages and exchanges have proved to be excellent choices to trade cryptocurrencies.
Some of the top sites include Binance, Coinbase, Zeabit, and Extoid. To trade, you have to create accounts with the respective platforms and deposit your investment.
Best crypto to invest in 2021
Most new and existing investors have trouble making up their minds on which crypto they should invest. This is a problem many people face, and if you are one of them, rest easy. Cryptocurrencies are widely confusing, and you can be sure that you are not the only one experiencing these difficulties.
Despite Bitcoin having brought cryptocurrencies to fame, other cryptos are currently also shining in the market. These cryptos made significant forward steps over 2020 and hold a grand promise for 2021. We can as well term them as the best crypto to invest.
Bitcoin is and has been the leading crypto making significant forward movements now and then. Bitcoin covers about 60% of the crypto market currently. This is the best bet investment whether you are a starter or a professional.
- Bitcoin cash
Bitcoin developers came up with a second version of the crypto, which can keep eight times the original data Bitcoin can hold. This crypto is still new to the market for only a few years; however, it has gained a lot and can be the best crypto.
Litecoin, created by Charlie Lee, was aimed at being a faster, more accessible version of Bitcoin. Litecoin mining takes about three minutes compared to Bitcoin’s ten. It can also be accessed and processed by devices with low specs. This property means that more miners can access the crypto, increasing the potential value.
Ethereum is aiming at decentralizing money; therefore, in a way, they are decentralizing the internet. Ethereum is looking to put a global system of nodes in place of servers to create one computer for the whole world. Ethereum’s market capitalization was set at about $40 billion at the time, second to Bitcoin. Ethereum has been catching since the introduction of Ethereum 2.0. On 3rd February, Ethereum recorded an all-time high, selling at more than $1,500.
Mistakes to avoid when investing in crypto
Cryptocurrency investments, as high yielding as they are, are also high-risk related. The market is highly volatile, and the chances of making large or going bust weigh in similarly. To reduce the chances of realizing losses, there are some mistakes you can beware of.
- Investing blindly
Whichever investment you are thinking of going into, it is always wise to study and be relevant to the market. You must spend a significant amount of time to get a comprehensive and vast knowledge of the basics of the field. Due to the volatile nature of the market, losing money is not a surprise without a good knowledge base.
Some basic things to know include:
- Crypto is wholly digital with no physical representation.
- Crypto serves globally. There is no instance you will have to change the currency to transact across the border.
- The whole transaction process happens online as it is virtual money; it is a peer to peer transaction.
- It is decentralized finance; only the owner holds power and duty of securing your funds. No authority controls crypto funds or investments made in the industry.
- Cryptocurrencies are encrypted. The user does not have to invest under their real names or addresses.
Therefore, you should be aware that no other person will be responsible for your money in investing in crypto.
- Overconfidence in the security of crypto
Newbie investors often make the mistake of thinking that encrypted means fully secure. Encryption means that the accounts will remain confidential and anonymous; however, it does not mean they are hack-proof.
These are some of the steps you can take to improve your funds’ security.
- Keep your keys private. Keys represent cryptos, and exposing them to the wrong hands could corrupt their safety.
- It is advised that you do not keep your assets in exchanges for an extended period. This is because most hackers target the platforms.
- Keep your crypto assets in digital wallets that best fit your needs and budget range. Apart from its features, it is also advised that you research the provider’s reputation, credibility, and performance.
- Ignoring analyses
Always analyze how the market trends are going, and if you are not up to that yet, you can always consult with professional analysts.
Also, pay attention to the numbers involved, e.g., transaction charges and profit margins. There are also tax and escrow fees involved. All these changes have an impact on the final sum you make.
- Investing based on emotions
You are bound to interact with some terms in the business: HODL, FOMO, and FUD. However tempting they might be, be careful not to invest without a plan as these strategies are based on emotions.
- Depending on a single crypto
Bitcoin is currently the top trending crypto making significant surges. It is tempting to invest in Bitcoin at the moment; however, be warned, this is a flexible industry and could plummet at any time. You can make, as gamblers say, a double chance bet by venturing into other cryptos.
How To Invest In Crypto Full Beginners Guide in 2021