How to invest with Cryptocurrency.
It’s incredible the number of people you hear saying “If only I had bought Bitcoin when it was £1 a coin…”. Yeah – you and me both! I don’t know anyone who bought Bitcoin when it was in its infancy and I myself only jumped on that bandwagon when it was at the £11,000 mark, so pretty late to the party on all accounts! But enough about the “if only’s”………………you came to this page to gain an insight into how to invest with Cryptocurrency……….. (and I’m guessing here)…………in the hope that investment leads to a small fortune?
We need a time machine
Imagine you could travel back to 1985 just like Marty McFly and Doc Brown, the possibilities would be endless! Your financial future would be exactly what you wished it were right now. But when it comes to investing in Cryptocurrency many of us feel we have entered a world of utter confusion. I’m a member of numerous social media groups full of so called “crypto experts”, but not one of them seems to know what they are doing and have no track record what so ever to support their claims when they predict where the market is going to go next. With over 22,000 Cryptocurrencies out there, coupled with countless ones being added to the offering all the time, your options are pretty much endless.
Cryptocurrency has taken the financial world by storm, offering exciting investment opportunities that were once unimaginable. With digital currencies like Bitcoin, Ethereum, and others gaining mainstream acceptance, it’s crucial to understand the fundamentals of investing in this volatile yet potentially rewarding market.
Understanding what Cryptocurrency is.
Before diving into the world of cryptocurrency investment, it’s essential to grasp the underlying concepts of what Cryptocurrency actually is. Basically it is a digital (or virtual) form of currency that relies on something fancy called “cryptographic technology” for secure transactions. Ok hold on. I need to explain that that is.
Think of it as a set of tools and techniques used to secure information and protect it from unauthorized access or tampering. Imagine you have a secret message that you want to send to a friend. You don’t want anyone else to be able to read or alter the message along the way. Cryptographic technology provides a way to achieve this.
At its core, cryptography uses mathematical algorithms to convert plain text into an unreadable form called ciphertext. This process is known as encryption. The encryption process requires a special key, similar to a password, which only you and your friend know.
Once the message is encrypted, it can be safely sent over the internet or any other communication channel. Even if someone intercepts the message, they won’t be able to understand its contents because it’s in an encrypted form.
When your friend receives the encrypted message, they use a complementary key to decrypt it, transforming the ciphertext back into the original plain text. This process is known as decryption.
The strength of cryptographic technology lies in the complexity of the algorithms and the keys used. Advanced encryption algorithms are designed to be extremely difficult to crack without the correct key, providing a high level of security for sensitive information.
In the context of cryptocurrency, cryptographic technology is used to secure transactions, verify the integrity of data stored on a blockchain, and ensure the privacy of users. It plays a crucial role in protecting digital assets and maintaining the trustworthiness of the entire system. I hope that cleared that one up for you. Now where were we…
Walk before you can run
I used to loath doing research. I just found it to be so dull and boring. But overtime I learnt the value in understanding what you’re spending both your time and money on. Thorough research is key to successful cryptocurrency investment. It’s really hard to stay on top of everything all the time but I use two primary sources to stay in touch with the Crypto World, namely CoinMarketCap and Coffee & Crypto.
Choosing a Cryptocurrency Exchange
To start investing in cryptocurrency you’ll need to choose a reliable exchange. I encourage you to research different exchanges based on factors like security measures, fees, supported cryptocurrencies, user experience, and customer support. However, if like me you like it when other people do all the hard work, you could take my advise and pay Coinbase a visit.
Honestly, I have used a number of recommended exchanges before, but I find Coinbase just so easy to use. Like virtually every exchange out there, it comes with an App that makes investing practically seameless. Once you have funded your account (which is dead easy) you are then able to purchase any Cryptocurrency that the exchange supports. Now a word of caution here…………………..well not so much caution more me clarifying a point. It took me a while to realise not all Cryptocurrencies are available on every exchange. Don’t ask me why because I have no idea.
Show me the money (that’s in my wallet)
As with conventional money, you’ll need somewhere to store your Crypto. Yes you can leave it on an exchange, BUT if that exchange gets hacked (which does and has happened) then you can kiss your Crypto goodbye. You really should get yourself a Crypto Wallet to ensure it’s as safe as can be. If you’re not sure which to get then I welcome you to read about the one I have and the one I think everyone should have, the Ledger Nano X.
All sound good but what coins do I buy?
So you have your exchange all picked out, a fancy new wallet that looks like a USB stick on steroids on it’s way to you in the post………………but what crypto do you buy? Maybe you should go for Bitcoin seeing how everyone talks about it…………….or maybe that really weird sounding crypto that the so called expert on Twitter is convinced is about to make him a millionaire overnight? Welcome to the crown jewel of crypto.
So how do I decide what Crypto to buy? I let someone else tell me. That’s right………..I could do a mountain of research and decide for myself…………..but the reality is I don’t know if I’ve done ALL the research I need to or checked every aspect of a company before I am satisfied I have done as much as I need to. So instead I decided to become a member of Copy My Crypto.
It’s a members only group where the guy who runs the website (James McMahon) will send you a video email each day with an insight into where the market is, what factors could influence it and what coins he has his eye on. He also tells you what coins he has in his portfolio and why he holds them. Then ever so often he’ll send an exciting email telling you to buy XXX as after doing all the necessary research, he’s concluded that it’s got fantastic potential and to get on board NOW. Only his member are privy to this information. So check out his page and sign up to be led by the hand through this confusing and overwhelming world of Crypto.
Is this the end already?
Before we say our goodbye’s, big disclaimer time. Investing in ANYTHING comes with risk (as you know) so please, please do your homework and understand those risks before you regret it.
Investing in cryptocurrency can be an exhilarating and potentially profitable endeavor. However, it requires careful research, strategic thinking, and the willingness to adapt to an ever-changing landscape. By understanding the basics of cryptocurrency, conducting thorough research, choosing the right exchange and wallet, and staying informed, you can begin your journey into the world of cryptocurrency investment with confidence.
Remember, it’s essential to start with only what you can afford to lose and to always seek professional advice when needed. With patience, perseverance, and a thirst for knowledge, you can harness the potential of cryptocurrencies and potentially shape your financial future.
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