Cryptocurrency has been succeeding overwhelmingly and the only ones left behind are those who are still unaware of it. Figures even show that in United States alone, only 24% are familiar with cryptocurrency and majority of them are still on the verge of deciding whether to give it a go or not. With this, it is safe to say that majority of the population in the world are likely unfamiliar with Bitcoin too, let alone the ways to get in on the action.
Considering to invest in Cryptocurrency? Just like how it is to invest in traditional stocks, research helps if you want to increase your chance of excelling in this field. To help you get started, below are some tips to consider:
- You have a lot of cryptocurrency options to choose from. Create a list of your top choices; and for every possible cryptocurrency to invest in, do your research thoroughly.
Know that all cryptocurrencies have their corresponding website dedicated to their alternative coin, a.k.a. altcoin. Apart from this, helpful, subjective, and informative discussions are already widely available in a lot of forum sites like Slack and Reddit. If you want to be more familiar with the community, company, and technology behind the altcoin you are eyeing on to invest, these forums and their website can immensely help.
Many investors are investing in every ICO (Initial Coin Offering) they can so as not to miss out. This has unfortunately given cryptocurrency a bad name. A number of the companies holding an ICO are taking advantage of the investor community just to build a product. Well, if you are unfamiliar of ICO, it is like a means for a cryptocurrency startup to raise money intended for the business. The investors get to see a landing page where a list of founders is shown and from there, they would decide whether or not to invest in the cryptocurrency company. Because of this bombardment in ICO, the SEC was triggered to stepped in to protect investors, especially the newbies. The solution they saw was for every investor to make sure he invests in an altcoin that has a community, a technology, and a team that are already established (take Siacoin for example).
- Study the trend in the market and perform fundamental analysis considering all the data you have researched.
Cryptocurrency trading can be likened to investing in traditional stock market where market trends can be relied on. Just make sure you take note of the market trends of the cryptocurrency coin you are eying on depending on the volume being traded and its market cap. For instance, Bitcoin at the moment has a market cap of around $72 billion. Market cap information can be researched fortunately. More often than not, these are shown in websites like Coin Market Cap along with the current altcoins being traded. You may also visit Coincube where it lets you invest in the top 20 altcoins by default automatically unless you specify which altcoins to invest in.
- You can buy and sell or trade your Bitcoins for altcoins for an exchange.
You can do this through an exchange like Bittrex wherein it lets you send your Bitcoin assets to a wallet there and once all is ready, the trade for other altcoins can begin. As you consider doing this, always bear in mind to try to invest in altcoins you have sufficiently researched about. Also, make sure you are investing what you are only willing to lose. Remember that this is a volatile market; losing everything within seconds is really possible. If this sounds interesting to you but you have no Bitcoin assets at the moment, ther are ATMS nowadays that allow you to put in cash and they will deposit Bitcoin into your wallet as an exchange. You may also visit websites like Coinmama or Coinbase to buy Bitcoin with your cash or credit card.