You may have seen the media buzz around cryptocurrency and are interested in getting involved. Before you rush out and buy some, though, make sure you understand the technology behind it. How it works, what you’re getting into, and the very real risks associated with cryptocurrency investment.
As with any investment, the more you know beforehand, the better off you’ll be in the long run. Cryptocurrency has taken the investment world by storm, with Bitcoin’s 1000%+ increase in value in 2017 alone making millions of people want to get involved and try their hand at investing. Here are some things to know before investing in cryptocurrency.
Where Can I Buy Cryptocurrency?
There are a lot of places to buy digital currency such as Coinbase, WazirX, Zerodha, etc. Coinbase being as one of the most popular. You can use that platform for converting your fiat into crypto (such as bitcoin), or you can keep it simple by trading one type of coin for another (for example: BTC/ETH). To really diversify, I’d recommend using Binance if you want to buy coins on an exchange.
What Does HODL Mean?
The term HODL is shorthand for hold on for dear life. HODL comes from a 2013 forum thread on Bitcointalk that was trying to describe why investors didn’t immediately sell their bitcoin holdings when they surged. The author wrote, “I type d that tyitle twice because I knew it was wrong once I typed it.”
Others jumped into the thread saying they had made similar mistakes with FUD (fear, uncertainty, doubt) and LYWD (love your wife).
Why Are Bitcoins Worth Anything?
When you first start hearing about Bitcoin, it’s likely you’ll see it as a cheaper way of purchasing items anonymously over the internet. And while that’s true, there are a host of reasons why Bitcoin has worth it. For starters, there are 21 million bitcoins out there (never more, never less), which means no central bank can create more when they feel like it.
There are currently $16 billion worth of them. People buy them because they think others will want them too, so they can trade goods and services with each other without involving third parties like banks or credit card companies. Cryptocurrencies also solve another problem: double-spending. Double spending occurs when someone spends their money elsewhere after they’ve already spent it on something else.
So, Should I Invest In Cryptocurrency?
If you’re looking for a new way to invest, cryptocurrency is quickly gaining popularity. As more businesses begin accepting Bitcoin as payment for goods and services, more investors are also looking at ways to get into investing in digital currency. If you’re considering taking advantage of cryptocurrency, there are some things you should consider first.
Cryptocurrency can be an exciting investment opportunity with a lot of growth potential. Although, it comes with risks like any other type of investment. It’s important that all investors realize that while they can profit from these investments they are putting their money at risk just like when they put money into other types of investments like stocks or bonds.
Other Ways To Invest In Cryptocurrency
Whether you decide to purchase tokens or coins, there are still other ways you can get involved with cryptocurrencies, but they may not be as lucrative as trading. Some of these include Mining, Investing in a Cryptocurrency Startup, and Staking.
What Are The Risks in Cryptocurrency Investment?
If you’re going to put your money into cryptocurrencies, you should understand that there are many risks. It’s definitely not a get-rich-quick scheme. A beginner should avoid investing large sums of money because it’s easy for prices to tumble as fast as they rise.
Although cryptocurrencies are growing increasingly common, most people don’t realize how complicated these investments can be. If you want to make sure that your cryptocurrency investment is sound, you need to learn more about blockchain technology—and specifically, cryptos like Bitcoin—before you buy any coins or tokens.
So, let us know what you guys think about this article and investing in cryptocurrency.