There are over 300 million crypto users worldwide. This translates to approximately 4% of the global population.
Furthermore, nearly 20,000 businesses are taking cryptocurrency as a form of payment.
Is it time for you to invest in crypto?
If you’re interested in digital currency as an investment opportunity, you are in good company. Many of the world’s largest corporations are using cryptocurrency to diversify their portfolios.
In this article, we will walk you through everything you need to know about investing in crypto and how to purchase cryptocurrency on an exchange.
What Is Crypto?
A cryptocurrency is a form of digital or virtual currency. It is cryptographically secured, which is a fancy term that essentially means it can’t be double-spent. People cannot make counterfeit versions of individual coins.
These cryptocurrencies are decentralized networks based on blockchain technology. It is difficult to describe the complexity of these technologies; however, just know that they are designed to be highly secure and immune from external manipulation. Governments cannot interfere with these currencies and manipulate them for their political purposes.
What Are the Advantages When You Invest in Crypto?
Cryptocurrency is an exciting new money paradigm. It removes intermediaries like banks and financial institutions.
This means that it removes the possibility of a failure point in the market. If a bank is sold off, it can signal a crisis around the world. However, cryptocurrencies are more immune to this phenomenon, despite their increased volatility.
Crypto also makes it easier to transfer money from one person to another. There isn’t a need for a trusted third party like a major bank or credit card.
How Do I Go About Buying Crypto Currency?
If you want to become involved in crypto trading, you need to join an exchange. These are similar to traditional stock market exchanges. They feature a variety of different coins that you can purchase at any given time based on the current market price.
You want to look at several major cryptocurrency exchanges because they have different fees, deposit methods, and other forms of customer support. Different exchanges offer more advantages to certain profiles of buyers. You want to find the one that matches your profile.
Once you identify the exchange, you will need to verify your identity. Most exchanges will ask for your email address, a phone number, and some form of identification.
After you have been identified, you can purchase your coins of interest. Many people choose to purchase safer coins that have been around longer, like Bitcoin or Ethereum. Other investing strategies involve placing money into more volatile coins to get a faster return, despite increased risk.
Many coins lie in between these two extremes. If you want to learn how to buy dogecoin, you can find more information here.
Ultimately, you can store your coins inside the exchange you purchased them on. You can also move it to a personal wallet. Many people are transitioning towards decentralized finance services for this purpose.
Investing in Your Future with Crypto
At the end of the day, there are a variety of great reasons to start to invest in crypto this year. Crypto offers a variety of advantages including speed and simplicity compared to traditional finance. Always talk to a financial advisor to ensure that your investment is worth the risk.
If you enjoyed this article about crypto and digital currency, please check out our other articles on iamfeelingblog.com!