If you purchased $100 of Bitcoin in 2009, you would be a millionaire many times over today. Not buying Bitcoin when it first came on the scene is a source of regret for many people.
You see more news about Bitcoin each day. It is quickly becoming part of the mainstream financial system. You may be interested in purchasing cryptocurrency, but you feel it’s challenging to get into it. Here are some tips to help you get started on your cryptocurrency buying journey.
Not All Coins Are Created Equal
Bitcoin has proven itself to be a relatively stable coin. It does move with some volatility, but it is not as volatile as some of the newest coins on the market.
One of the reasons economists have encouraged people to use caution when investing in cryptocurrency, especially in investing in the hottest new coin, is this volatility. There have been several cryptocurrency bubbles that have consumed people’s life savings.
The government does not back cryptocurrencies. So its price can fluctuate drastically. An excellent example of a meme coin with drastic fluctuations in price is Dogecoin. Its value rises and falls based on what influencers say about it.
Do Your Own Research
It is easy to get swept up in cryptocurrency mania. The internet is full of so-called cryptocurrency gurus who happily give you their latest predictions. However, no one can certainly know how the markets will move even with trusted financial institutions, like the stock market. So there is even less certainty with cryptocurrency. Be wary of people who promise you great returns on your cryptocurrency investments.
According to the experts at SoFi, “There are several different types of cryptocurrencies available today – all with different attributes and designs. There is no consensus superior coin, so we recommend researching and determining what you feel holds the most future value.”
Only Work with Reputable Exchanges
One of the first things you need to learn in researching how to buy crypto is where to buy the cryptocurrency from. When digital currencies first appeared on the scene, exchanging fiat currencies for cryptocurrencies was a security risk. It was easy for exchanges to get hacked. There are several reputable cryptocurrency exchanges, including Coinbase, PayPal, and some banking institutions. There is no benefit and no reason to go with an unreliable option.
Store Your Cryptocurrency on a Physical Wallet
A physical cryptocurrency wallet looks like a USB drive. You can purchase cryptocurrency on an exchange and then transfer it to your wallet to be stored. You can buy a hot or a cold wallet. A hot wallet has an internet connection, so you can move your coins and spend them wherever Bitcoin is accepted. A cold wallet is not connected online. Physical wallets are portable and provide you with the most cryptocurrency protection long-term.
Are You Ready to Invest in Cryptocurrency?
Cryptocurrency has been around for more than a decade. It has experienced volatility, but stocks and other investment vehicles also experience volatility. A cryptocurrency is a great tool that can help you diversify your portfolio.
