Ever since Bitcoin exploded in 2017, people began to take interest in the crypto space to learn more about it. Some want to invest in this promising and amazing technology. And others just want to make a quick buck.
But regardless of your motives, you’ll need to learn about cryptocurrency first before you start investing in one. Lucky for you, this article is here to help.
What is Cryptocurrency?
In a nutshell, cryptocurrency is a digital asset secured by cryptography. The first decentralized and most famous one would be Bitcoin.
Blockchain technology built Bitcoin, and its popularity is mainly because of its decentralization, which allows a certain level of security.
Alternative cryptocurrencies (also known as altcoins) rose on the blockchain, too, since Bitcoin became popular, which can have many functions. A good example is Ethereum, which has smart contract functionality.
Where to Buy Cryptocurrency?
The most popular place to buy cryptocurrency is Coinbase. But there are alternative places like Changelly, Gemini, Binance.US, Bittrex, and Kucoin.
Where to Conduct your Research?
Thorough research is a must in the crypto space. So, below are some of the places crypto enthusiasts use when researching new crypto assets.
Your go-to place for anything related to crypto would be CoinMarketCap. This site lets you see the current price, total supply, historical charts, and market capitalization of assets like Bitcoin and Ethereum.
The next thing you should look at is the company website. It is where you’ll get the general information about the asset you are interested in and the company’s whitepaper.
You can also go to subreddits that focus on cryptocurrency topics on Reddit. Besides memes, you can find plenty of posts discussing market trends and people asking questions about cryptocurrency.
Social media is a swell place to get cryptocurrency information. You can follow influential people in the crypto space and see their next moves and what assets they think are a good investment.
Some Tips Before Buying Your First Crypto Currency
Before you start investing in crypto, you need proper management of your finances first. It’s essential to have an emergency fund with you, a manageable debt, and a diverse investment portfolio.
Other than that, below are other things you need to keep in mind.
Understand Your Investments
As with any investment in your life, it’s also essential to understand your crypto investments. Many cryptocurrencies, like Bitcoin, are not backed by any assets or cash. That means many crypto-assets rely solely on the market. So, understand what you are getting into before letting go of your cash.
The Past is Past
New investors make the mistake of thinking that the past performance of a crypto asset will dictate its future. Yes, Bitcoin grew to be much more. The question is, will it continue in the future?
As an investor, you should always look toward the future of your investment, not its past.
Watch the Volatility
Crypto assets are as volatile as they can get. So much so that they can drop in the blink of an eye without you knowing why. An experienced investor can take advantage of this by buying low and selling high. But beginners might do the opposite, which leads to them losing money.
So, take note of the volatility and keep up with news and trends to predict the value of your crypto assets.
Cryptocurrency is one of the most promising technologies today, especially when it comes to financial investments. But this doesn’t mean that you can just jump in and hope for the best. So if you want to learn more about crypto, go to https://kryptovaluta.info/en to equip yourself with more knowledge before you go investing on your first crypto asset.