In October 2013, 1 Bitcoin was worth about $196. At the time of writing, the bitcoin price is about $61,548.91. This data shows an over 31,000% increase in the price of Bitcoin in the space of 8 years. The information also proves how rich you can become if you invest in cryptocurrency.
Despite the data given above, many people are still confused about the meaning of cryptocurrency and how to invest in it. By the end of this article, you will understand cryptocurrency investment. You will also learn how to buy Dogecoin, Bitcoin and invest in them as well. Moreover, you will also find out the top-rated Tether casinos that allow people to play using cryptocurrency anytime online.
What is Cryptocurrency?
Cryptocurrency is a digital asset like stocks and bonds with a propensity to lose or gain value. This virtual currency is spent online in a hub that is usually referred to as the cryptocurrency market. There are tens of thousands of cryptocurrencies, including Bitcoin, Dogecoin, Ripple, Ethereum, and Litecoin.
The cryptocurrency market is different from the banking system because you have complete control of your money. The flow of money is not controlled by anybody (individual or organization). Cryptocurrency uses a decentralized system with no central location or server making it challenging to trace.
Each transaction a person makes is recorded in a digital ledger, similar to the physical accounting books. Each of the entries into that ledger is called a block, and we have several of them. The block information is shared to many computers worldwide, and these computers make up what is popularly referred to as the blockchain. The blockchain is a system that helps to manage information within the cryptocurrency market. It also provides security and transparency while taking away the need for a third party.
What to Pay Attention To Before investing?
The constant change in the value of a cryptocurrency has led to a rise in cryptocurrency investment. People can now buy Dogecoin, Bitcoin, and other assets with the sole purpose of investing and making profits in the short and long term. The truth is, you can make or lose a lot of money when you invest in cryptocurrency. The difference is always what you know, how, and when you invest. So before you invest, here are some things you need to know;
Understand what token you want to invest in
The rise in cryptocurrency investment has created a market for online scammers to dupe people. Also, some crypto coins do not show any growth potential and will make bad investments. As such, before you invest in cryptocurrency, you need to research extensively.
Don’t judge by the past performance
You cannot invest in a token because it has grown well in the past. You need to confirm that the growth will continue before you invest. To do this, you need to read expert analysis on the coin and understand the possible pattern it will take in the future – bullish or bearish.
Do not ignore the coin’s volatility
Cryptocurrencies can be very volatile, and ignoring this can be detrimental to your investment. The Bitcoin price, for example, is very volatile and continues to change almost every minute. When you want to invest, make sure you are buying low and selling high to make profits.
Design a risk management system
Before you start cryptocurrency investment, ensure there is a risk management system in place. Proper risk management will help you to last longer and gain much in the cryptocurrency market. One way to manage the risk of cryptocurrency investment is to diversify your portfolio.
Invest only a percentage and not all of your earnings
Cryptocurrency investment is primarily based on speculation. No one can correctly predict the market; as such, it is not wise to have all your investment eggs in one basket.
How To Buy and Invest in Cryptocurrency
If you want to buy Dogecoin, Bitcoin, Ethereum, or other cryptocurrencies, search for a reliable cryptocurrency exchange platform or broker. These platforms will show you their Bitcoin price, and you can exchange your currency for Bitcoin on that platform. The process is the same for other tokens like Dogecoin, Ripple, and Ethereum.
To invest in cryptocurrency, you only need to buy and hold a token till its value increases, and you are ready to sell. There are several coins you can invest in, and some of the viable and profitable options include;
- Binance Coin
- Shina Inu
Cryptocurrency investments are speculative at best but profitable at last. The value of a token depends on the strength of the blockchain and the intensity of investment. As such, ensure you channel only a small percentage (at most 10%) of your investment portfolio to cryptocurrency.