Bitcoin has been underwritten by many in the mainstream since it came out in 2009. However, it was not always sought after as it is today. Before it’s entrance into the global arena, it was known to underground geeks only who hailed it as futuristic; nobody else would bat an eye. The financial and investment segments were oblivious to its rise into a global phenomenon. It was merely a hardcore geek’s dream currency meant for their dream world. Being confined to a handful of people, none in the outside world had any idea on how to invest in Bitcoin.
More than 13 years into its inception now, Bitcoin is a highly popular investment asset around the globe. Having peaked in value at more than USD 65,000 each, Bitcoin has become one of the biggest assets in terms of market capitalization. It has ushered in a world of Cryptocurrencies. These are now considered asset classes owing to very high year-on-year growth. Finance professionals have now started making big investments in Bitcoin and other cryptocurrencies. A lot of people have followed the suite. This has made the investment in cryptocurrency a real deal and led to billion-dollar industries and infrastructure built around that. With exorbitant returns for the investors, Bitcoin has been benefitting those associated with it.
This article will familiarize you with cryptocurrency investment – how to invest in it and benefit from the excessive returns it offers especially the Bitcoin. However, it is imperative to also keep in mind that Bitcoin is highly volatile and has high risks associated with it.
Investment in Cryptocurrency: Here are a few guidelines and steps to assist you to start your cryptocurrency investment journey with safety and security.
Choose what to invest in: Currently, the market is flooded with hundreds of cryptocurrencies with a new one being introduced every other day. On the contrary to what gurus and other people say, not all of these new cryptocurrencies are scams. However, some of them are potential scams. Therefore, it is critical to choose the right currency to invest in from a sea of cryptocurrencies.
To ease or assist this choice, it might be a good idea to invest in a cryptocurrency that is backed by something solid. For example, the US dollar is backed by the US government which enjoys a good reputation and enables stability to USD value. On similar lines, cryptocurrency is backed by a project or a community e.g. ETH which is backed by a whole blockchain that offers a complete suite of services that run on the token, giving it a strong backing in the crypto world. Thus, it is fundamental to identify and choose a cryptocurrency that has robust use case and community to back it.
Choosing A platform:
In a traditional financial investment, says the stock exchange, the access is provided through brokers. In the crypto world, one has direct access to the exchange without any broker or middleman. Furthermore, in a traditional stock exchange, one has access to a diverse and limited number of specific stocks depending on the exchange you wish to invest in. However, crypto exchanges provide access to a similar list of coins. Therefore, other factors become important when choosing the exchange. Two major factors are security and ease of use. Since money is involved in investment and crypto investment through exchange entails trusting the exchange with money, it is imperative to choose a reputable and secure crypto exchange. Binance is one such example of a secure and reputed crypto exchange platform. Similarly, it is also important to opt for a platform with an easy user interface that provides an excellent user experience. One would not wish to use an exchange that is difficult to operate and requires considerable learning.
Lastly, an investment strategy: Investment, be it any kind, are worthy and beneficial with an end goal in mind coupled with a clear road map. Thus, it is prudent to have a good investment strategy before starting to invest in cryptocurrencies. It would mitigate the risks involved in cases where over-ambition and underselling situation entail huge losses. A number of such investment strategies created by finance professionals can be found online for assistance. One could create their own strategy by learning investment fundamentals. However, the key here is to have an investment strategy.