Cryptocurrency is an online money system that is used to doing secure business transactions. And in this article, I am going to tell you how to invest in Cryptocurrencies and how it works.
Investing in cryptocurrency is not as straightforward as physical currency. You have to understand it properly before investing in it.
A Complete Guide on How to Invest in Cryptocurrencies
Let’s start the whole discussion step by step in detail.
When Should You Buy Cryptocurrencies?
Even though there is no general deciding factor in picking the time to buy cryptocurrencies, it is advised not to buy when it is at the peak of its increase. Best time to buy is when the price is stable or low.
The tricky part to buy it is knowing when the crypto is in peak mode and when it reached the bottom. To ensure you get it right, make sure you take time to watch the growth pattern. It is important to identify when there is a through and not just a minor dip.
For example, in the graph, the ideal time to invest in that particular cryptocurrency was between 2015 and 2016.
Where to Invest In Cryptocurrencies?
Cryptocurrencies are traded on their online platforms, just like stock markets run stock exchanges. To get the best offering, it is advised to invest in more extensive currencies as they have a more significant market and a higher probability that your trades will be successful.
The most popular currencies are GDAC, Kraken, Bitfinex, and Gemini and they provide good volume to trade Bitcoin and Ethereum with the US dollar through credit cards or bank transfer. The main difference between these currencies are the fees and user interfaces.
For other altcoins, Poloniex is more viable, and it is a diverse exchange that offers over 80 crypto coins but only funds using the Bitcoin or other altcoins.
After selecting the exchange means, you’ll then have to verify your account within 2-3 working days with identification documents like:
- Driver’s License,
- Passport or
- ID Card
This information is vital to exchanges as it enables them to verify your financial information so that scammers can’t use fake credit card details.
How to choose a Cryptocurrency Wallet?
There are several types of crypto-wallets:
- Desktop – you hold your wallet on your PC. I guess you feel safer when wallet is on your personal PC. But do not be mistaken. Almost all PCs are connected to internet and hackers will find their way to steal it
- Online – pretty safe, but only if you choose brand which you can trust. There are cases when even biggest crypto-networks were hacked and all money stolen. I personally would recommend to split money in a few online wallets.
- Mobile – on your smarthone. Stay away, man! Only if you hold there max $50. Smarthone is too easy to lose. 1 second, and it is falling into some river.
- Hardware – that is most serious one. If you are a rich boy, use this method. Buy some special crypto-usb and put in in safe.
- Paper ( yes that exists) – way too easy to lose.
Send and Receive Funds Using the Wallet
After getting your wallet, it becomes easier to transfer the funds. To move cryptocurrency out of the exchange, all you have to do is paste your wallets public key into the extensive website and send it.
If you want to buy, paste the exchange’s public key into your wallet’s transaction contract and confirm. You can also scan QR codes when using mobile wallet apps. Each wallet transaction cost a portion of the cryptocurrency you are selling.
I hope you have enjoyed reading the article, how to invest in Cryptocurrencies. If you have any questions regarding this, you can ask by commenting. I’d like to solve your problems.