Cryptocurrencies are some of the hottest assets in the market today, and people are clamoring to find out how they can get in on this trend and make some money.
If you’re not familiar with cryptocurrencies, let’s start with an overview of what they are and why they’re so valuable right now before we dive into how you can get in on the action. First, what are cryptocurrencies? Cryptocurrencies are digital currencies that use blockchain technology to verify transactions and create units of currency that can be used as payment options around the world. What makes them so valuable right now?
Invest in a hardware wallet
While a software wallet offers decent security, it isn’t invulnerable. In fact, if your computer is compromised by malware or keyloggers, you could very well find that thieves have cleaned out your digital wallet. Hardware wallets like Trezor and Ledger protect your information much more effectively than software wallets.
If you’re planning on investing in the best cryptocurrencies on a regular basis, hardware wallets are a must-have accessory.
Start trading with small amounts
The crypto market is not as liquid as traditional equities and asset markets, meaning that it is much harder to buy/sell cryptocurrency at a good price. Start trading with small amounts of money that you can afford to lose, thus eliminating some risk. Secondly, trading requires time and attention – if you’re day trading the best cryptocurrencies, then hours of time each day need to be dedicated to monitoring your trades.
Thirdly, trading in cryptocurrency isn’t straightforward – there are risks involved with many different types of best cryptocurrencies (involving bitcoin as well), and it’s important for you to research which ones will suit your needs best before placing trades.
Store your cryptocurrencies offline
While blockchain technology is designed to be decentralized with no single point of failure, storing your cryptocurrency on an exchange is a very bad idea. Exchanges are well known for getting hacked and losing customer funds.
If you do store your cryptocurrency on an exchange, I recommend using 2-factor authentication (2FA) for extra security. Having 2FA enabled means that in addition to entering your password, you’ll also need another piece of information from your phone (this is usually a 6-digit number).
Invest in Bitcoin
If you’re not convinced that cryptocurrency is valuable, Bitcoin has been a good thing to invest in recently. For anyone who got on board before Bitcoin was worth $1,000, they’ve made money—and lots of it. In July 2017, Bitcoin was trading at just under $2,700 per coin.
When I started writing on Medium in August 2017, it had already jumped up over 25% in value and was sitting at around $3,500 per coin.
Both Coinbase and Binance are two of the largest cryptocurrency exchanges in terms of volume, meaning that if you’re looking to get involved in trading digital currency (including but not limited to Bitcoin) you’ll need a way to convert fiat currency into crypto.
Luckily, both companies have excellent beginner-friendly tutorials on how to open accounts, deposit funds, place orders and buy digital currency. Once again, I can’t tell you which exchange is better because they both do things differently.
Try them out for yourself and see what works best for your needs! And remember: don’t store more best cryptocurrency than you’re willing or able to lose. Things are volatile and risky enough as it is.
Use Changelly or Shapeshift
If you’re looking for an easy way to buy the Best cryptocurrencies, Changelly and Shapeshift are two good options. Both exchanges allow you to use a credit card along with wire transfers, and eventually PayPal.
The fees will vary depending on what you’re buying, but both exchanges feature zero processing fees. Note: Coinbase only offers bitcoin, Ethereum, and Litecoin at present; if you’re interested in buying other coins directly with your bank account see our guide on how to use your bank account or credit card to buy cryptocurrency. You can also check out our list of all set up exchanges here or read more about how we tested many different types of accounts here.
Keep an eye on upcoming ICOs
If you’re thinking about buying some cryptocurrency, then you should think about getting in early.
The price is typically still low at an early stage of a project’s life, and increasing demand can send prices soaring—especially if there are investors waiting for an opportunity to get in on your favorite new coin.
It can be time-consuming, but keeping tabs on upcoming ICOs and planning ahead can help you save a good chunk of money when it comes time to purchase new digital tokens. Many coins have a whitepaper that describes what they hope to achieve with their technology; pay special attention here and see if your interests align with that of the coin or token.
Join Communities like bitcointalk and Reddit r/ethtrader
These are two of my favorite communities. They’re great for getting information on all of your questions and keeping up with current events. It also helps a lot if you have any technical issues, as there is an entire community devoted to answering such things.
There are also plenty of places on Reddit and bitcointalk where you can buy, sell, and trade the best cryptocurrencies. On these sites, make sure that your transactions are secure and that you check reviews before using any service (especially exchanges). When dealing with best cryptocurrencies in general, always make sure your computer is protected from viruses by installing anti-virus software first!
Do your research
While you’re doing your research, you’ll likely find that some best cryptocurrencies are more popular than others, so you should pick one or two of those to start with.
There are platforms like CoinMarketCap where you can see all sorts of information on each coin. In fact, they even have a section specifically for new cryptocurrency investors.
At the very least, do your own research on Reddit and YouTube reviews and make sure you have at least a couple of resources to turn to if something goes wrong. In general, buying tokens early is a safer bet but it also has higher chances of failing completely as most ICOs fail in their first 6 months from inception and only about half make it past that point.
Spread your investments out over time
You can never be sure which crypto will be a good investment or if you’ll get lucky and have one really take off. But you can make things more likely by spreading your investments out over time. Don’t try to buy all of something at once. S
tart with small amounts, such as $20 or $50, and only add more when you’re comfortable doing so. That way, you’ll lose less money if it doesn’t work out than if all your money is in one coin that takes a turn for the worse. If things go well though, know that you could stand to make serious bank—and maybe even enough cash to pay off some debt or fund a big purchase.
we hope that you like this article about the best cryptocurrencies to invest.