Want to know more on how cryptocurrency investments make money?
Here’s how to start investing in cryptocurrency and what you need to watch out for. This beginner’s article will guide you on how to buy cryptocurrency safely without losing your hard earned cash. Having appreciable knowledge on cryptocurrency in general and best investment strategies are key drivers in maintaining a profitable portfolio in the crypto space. The topics covered are best discussed below:
Cryptocurrency for Beginners
What is Cryptocurrency?
It is encrypted and decentralized digital money that acts as medium of exchange. Cryptocurrency relies on blockchain technology and therefore it has no central authority managing it in comparison to the case of the U.S. Dollar, the Euro, Rouble or the Yen. Cryptocurrency transactions are recorded on public ledger and stored on crypto wallets. Bitcoin is the first and most widely traded dominant digital currency since 2009, founded by an unknown individual popularly referred to Satoshi Nakamoto. Another example of cryptocurrency is Ethereum developed by a programmer called Vitalik Buterin in 2013. This is the second most popular cryptocurrency after bitcoin. There are over 1900 cryptocurrencies in circulation including Decimal coin (our cryptocurrency), Litecoin and Ripple. All other cryptocurrencies apart from Bitcoin are often referred to as Altcoins (thus combination of alternative and coin).
Understanding the Workings of Cryptocurrency
A fair amount of knowledge is needed in the understanding of how to create a cryptocurrency and how it works. Purchasing it like any other assets such as stocks or precious metal comes with its associated risk. There is therefore the need for beginners to have an appreciable knowledge on the workings of cryptocurrency. The distributed public ledger technology is often used to track and record all the transactions held by currency holders. Most cryptocurrencies rely on blockchain ledger technology; blocks linked together to form cryptocurrency transactions of the previous chain). These transactions cannot be altered once new transactions are recorded to the existing network hence making it more permanent and transparent. Units of cryptocurrencies are created through solving computational mathematical algorithms otherwise called mining. Cryptocurrencies such as decimal coin, bitcoin among others are sometimes purchased through peer to peer platforms and cryptocurrency exchanges.
Benefits of Crypto Investing
Thinking of investing in cryptocurrency for the first time in 2022? Cryptocurrencies such as Bitcoin and Ethereum have seen massive growth since inception. For instance, if you had invested in crypto with $1000 in 2019, you would have earned more than 133% on your crypto investment. To make money with cryptocurrency, the following potential benefits are highlighted:
Cryptocurrency offers the best opportunity for growth for one’s crypto assets comparatively over time much higher than stocks. Bitcoin, Ethereum and DEL coin offer more options for beginners to invest because the rate of returns are quite huge.
Offers the option to be Crypto Investor and Crypto Trader
Investing in Bitcoin or cryptocurrency in general offers beginners the option to either choose to be crypto investor or crypto trader. It is important for crypto beginners to learn how to trade cryptocurrency. Otherwise, knowing the difference between crypto trading and investing is the essential part of any beginners` guide in crypto. If the goal is to remain profitable in crypto, beginners are required to develop certain strategies as expected outcome most times vary. Therefore, knowing the difference between crypto investing versus crypto trading will guide beginners how to sell cryptocurrencies, how to manage their expectations, emotions and potential risks. Expected outcomes for crypto investment are in the medium to long term while that of learning cryptocurrency trading is in the short to medium term. Crypto trading offers best returns, while dips and fluctuations don’t affect long term profitability of crypto investing. This is the main reason why one should learn to trade cryptocurrency. Buying and holding crypto assets require holding such crypto assets for months to years. While that of crypto trading requires holding such positions for a few minutes to some days. To get started with crypto trading, the most important step is creating, verifying trading accounts and making deposits. Trading isn’t a get rich quick scheme, therefore hard work, patience and great skills need to be exercised at all times. Beginners interested in learning crypto trading are urged to build knowledge, develop trading strategy and ensure crypto assets diversification.
Cryptocurrency is Decentralized
Cryptocurrency is free from central governments controls thus giving absolute power to the user. Cryptocurrency transactions are equally irreversible once they are sent off through them.
Fast Processing Time
Crypto offers the fastest processing time in just a matter of second.
Is it Safe to Invest in Cryptocurrency?
Investing in volatile assets often produces crazy returns with accompanied risks. Thus investing in crypto offers extreme gains and also the risk of losing. Cryptocurrency is not entirely safe due to some factors, however crypto is here to stay. Beginners are therefore cautioned to weigh the pros and cons associated with cryptocurrency before investing. There is increasing mass adoption of cryptocurrency ranging from professionals to institutions making it the most rewarding investment against inflation. However, cryptocurrencies are associated with the following under listed risks. Therefore beginners must exercise extreme care when carrying out transactions or about to invest or trade. These include:
Sudden sharp change in prices;
- Mistakes are also costly and irreversible in some instance;
- There also exists the risk of being scammed by heartless individuals;
- The risk of losing private key, if that happens one would not be able to access his virtual assets;
- Frequent government’s crackdown.
Best cheap Crypto to Invest in
The best penny cryptocurrency worth investing at the moment is the DEL coin. This is because the Decimal coin runs on a decimal chain. It is a blockchain that helps to create and integrate dapps, smart contracts and including tokens on the most popular IBC. Other penny tokens priced below $5 include:
- Polygon (MATIC);
- RIPPLE (XRP);
- Cardano (ADA);
- Decentraland (MANA);
- Shiba Inu; and
- Stella Lumens (XLM).
How to Invest in Cryptocurrency
The best approach to investing in Decimal Coin (DEL) without getting scammed is to buy the coin through the listed exchange. The DEL coin is sold at CEX, DEX, P2P and Card. First of all, one needs to have a verified crypto exchange to instantly buy DEL coins either in Rouble or Euro or USD. The simplest steps required to invest in cryptocurrency much especially decimal coin (DEL), are outlined below:
Step 1: Open an account with either CEX or DEX exchange. Provide the exchange with your personal information that is uploading a copy of your ID for help in checking anti-money laundering activities.
Step 2: Make a deposit into your account at least starting from $20 upward.
Step 3: Go to the trading panel of the exchange, search for DEL coin.
Step 4: Click ‘Trade’, an order panel will pop out on your screen. Input the amount you want to stake.