We believe most people already know about cryptocurrency. It’s been one of the most viral topics on the internet for a while, and it still catches people’s attention. For those of you who still don’t know about cryptocurrency, you can find out here, in today’s article!
What is cryptocurrency?
Let’s start with the basic information which is about the history of crypto. Cryptocurrency is the evolved form of bitcoin. The difference between them is that bitcoin came from the financial crisis from 2007 to 2008. It acts like digital money that doesn’t relate to the bank or any government, and it can be exchanged with anyone for any reason. Thus, cryptocurrency is the evolution of bitcoin as they used the technology called Blockchain, and it can be spent on real estate, gaming, or music.
The safety of digital currency
Both bitcoin and crypto are considered a digital currency, so when people have to do an online transaction, they tend to be aware about safety. However, as mentioned above crypto uses the blockchain system, so it’ll collect all the data of every transaction. The system will change your information into unhackable code which will increase the safety for users. It’s also open for the users to monitor the transactions, but it’ll not show any other information, so it might be too hard to read it sometimes.
Is crypto really a new currency?
To speak frankly, cryptocurrency is being accepted in just some parts. It depends on your country, and the business you’re going to pay. Also, you have to pay some money in order to add your money into the blockchain system which you’ll be charged a small fee for. This process is to guarantees that your transaction will be completed quickly, otherwise, you have to wait for a long time to proceed.
Let’s get to know for being cryptocurrency users
For investment channels in cryptocurrencies, it’s easy way to do that is investors can trade coins through ‘Digital Asset Exchange’, such as Binance, Coinbase, Bitkub or Satang Pro, etc. These sites are like a stock exchange where investors can trade on the board. The difference is that the crypto market is able to trade 24 hours a day.
The investor’s qualifications can be called ‘anyone can invest’ through the website or application of the trading center that investors are interested in. Even so, investing through a digital asset exchange in a country that is licensed by the Securities and Exchange Commission (SEC) must be over 18 years of age. If investors age between 18-20 years old, they must submit additional documents and have parental consent. Overall, when considering investment behavior or the question ‘Investing in crypto suitable for short-term investors or more long-term investors?’, it could be a golden opportunity for short-term speculators. On the other hand, some coins may be suitable for investors who expect long-term returns.
5 steps for starting invest in cryptocurrency
Step 1: Get to know Blockchain Technology
Blockchain Technology is the first thing every newbie must know and understand deeply before investing. Since it is the working system behind Bitcoin and other digital currencies, which can make transferring a digital wallet occurred. The real outstanding feature of blockchain technology is that it is a system that does not have any intermediary or organization to control it, thus making transactions with cryptocurrencies transparent and safe from editing by anyone.
Step 2: Understand the White Paper
When we are looking for a good fundamental stock, we need to look at the financial statements, or If you want to get a good mutual fund, you need to read the Fund Fact Sheet. Absolutely! If you want to invest in a good basic crypto coin, you need to read the White Paper because it will help you know the purpose of creating the coin you will invest in.
Step 3: Be careful about the price because it can swing
Cryptocurrencies are up and down, and changeable, so they can drop anytime. What you can do is to always be a well-prepared investor, and comprehend and postulate the market trends. For example, try to think about the way the tendency will be in the future, which can be considered from the economy, current events, or new trends.
Step 4: Handle risk effectively
As a new trader, you should know how to cope with risks to reduce potential losses. Risk management can be classified into 2 types which are short-term and long-term. For the short-term trader, you should establish rules to define when you want to sell in order to prevent a minor decline from turning into drastic losses. Second, the long-term investor should consider the price every time before selling.
Step 5: Balance between invest and lose
Whenever you invest it’s necessary that you take your losses into account. Remember that you should evaluate the money you have, and losses you can afford because if you’re over-invest, there are a lot of risks that come after. Also, checking exchange or broker security is essential. Make sure that hackers can’t access your assets.
Suggestions: Cryptocurrencies can be invested in diverse ways. Here are a few examples:
- Blockchain ETFs: this opens new chances to invest in blockchain technology companies.
- Crypto funds: it makes you stake on the price which can be unstable such as Ethereum or altcoins.
- Broker stocks and crypto exchange: this can be a good idea since the stocks relate to the profit and the growth of cryptocurrencies.
Every investment has its own risk, so before investing, you should consider it. If you want more business tips and new trends, don’t forget to visit our website https://www.getunstuckmethod.com and stay tuned for our promotion!