Cryptocurrency as an idea absolutely revolutionized how finance works and it completely changed the investments game. Cryptocurrency was created thanks to a type of technology called blockchain, without this technology there would be no way for cryptocurrency to exist. Blockchain technology was invented for the sole purpose of being able to trade Bitcoin, although it now has other uses, this was why it was developed. Cryptocurrency defined as simply as possible is that it is a medium of exchange, just like any other medium such as the US Dollar or the Japanese Yen. However, it differs from these as it is purely digital, cryptos have no physical form, they exist only online. Whilst this may make it seem like cryptos are not safe, they’re secured by a special technology and use complex encryption techniques to verify any transfer of coins. If you’re wanting to get involved in investing in crypto since it has become mainstream then you’ve probably seen that the internet is overwhelmed with questions like which is the best cryptocurrency to invest in or wie kann man bitcoin kaufen, this can make it extremely confusing as there is often conflicting information online. To help you get involved we’ve made a handy little guide so you can find out all the ins and outs of investing in crypto and it’ll all be in one place.
How many crypto currencies are there?
This is a great first question and a great place to start with your research on crypto currency. You’ll need to be aware of what crypto currencies there are and how many there are so you can shop around to find the most suitable investment. Many cryptos that have been introduced have already failed, but in total there has been almost 7000 different cryptocurrencies. Obviously, it won’t be possible to do research on all of these different cryptos nor would it be worth it. There are ways to pick a crypto to invest in without having to research them all making it easier to make a great investment.
What are the most popular crypto currencies to invest in?
Bitcoin absolutely dominates the crypto market; it was the first crypto currency to be introduced and it seems unlikely that any other crypto will become as successful as Bitcoin. It was introduced back in 2007 and since then has had massive growth. Two big milestones for Bitcoin were when Tesla, the company owned by the celebrity Elon Musk, added Bitcoin to their balance sheets and when El Salvador decided to make Bitcoin legal tender. Various companies across various countries are now accepting Bitcoin as a legitimate form of payment like PayPal, you can now use Bitcoin to purchase flights, groceries or your weekly takeout pizza. Bitcoin is now valued at $1 trillion making it a safe crypto to invest in. The next most popular crypto currency to invest in is Ethereum, it was introduced after Bitcoin so isn’t as valuable but it is the only other crypto on the same level as Bitcoin. Since more people have started investing in it, it has forced Bitcoin’s market share down from around 75% to less than 50%. Ethereum is projected to grow rapidly so now is a good time to make an investment, if the predictions are right then you’ll have the chance to make a big profit from Ethereum.
Where do I buy crypto currency?
Once you’ve decided what crypto you want to invest in then you need to know how to buy and where the safest places to buy crypto are. Many new start ups have great offers but if you’re investing a lot of money into crypto then you may feel skeptical trusting a new company with your money. If this is the case then you’ll be better off using an already established and trusted site, the most secure site that has been around for years with few issues is Revolut. On Revolut you can invest in the biggest cryptos like bitcoin and you can also invest in many of the smaller cryptos like DogeCoin, whilst not as successful as Bitcoin, many investors have still made huge profits.
What are the risks associate with investing in crypto currency?
Like any investment there is a high level of risk. The currencies are extremely volatile, just because a currency is trending upwards and is predicted to be stable, doesn’t mean this is the case or that it is safe. The external environment that affects currency is completely unpredictable, this was made obvious when a group of reddit users caused a hedge fund to declare bankruptcy by manipulating the market. However, if you’re wanting to invest your money and willing to take a risk then this is no different to any other investment and right now cryptos are the hot thing to be getting involved with. The other big risk is that there is a lot of crypto related scams online due to its popularity, if you fall victim to one of these scams then you could end up losing all of your investment money. However, this hasn’t put people off from investing and you’ll likely have seen many success stories in relation to crypto. People worldwide took the risk, avoided the scams and managed to make a fortune from their investments.