If you’re new to the world of cryptocurrency and want to start investing in crypto, then this beginner guide is for you. In this article, we’ll provide you with basic information on cryptocurrencies and how to invest in them. We will also introduce you to the different types of cryptocurrencies available on the market. Finally, we’ll give you a step-by-step guide on how to buy and sell cryptocurrencies online.
Some Fundamental Concepts to Understand First
Before you start investing in crypto it is important to understand cryptocurrencies are not regulated by governments or banks, so they are on the risky side of the investment spectrum.
Secondly, it’s important to research leading cryptocurrencies and have a grasp of how they work and their potential before investing in them.
Next, you’ll need a cryptocurrency wallet in which to store your coins. Altcoins coins are typically sold and bought using fiat or digital currencies like Bitcoin and Ethereum. You can find cryptocurrency wallets online or in app stores like the Apple Store and Google Play Store.
Finally, it’s important to remember that cryptocurrencies are still relatively new, and their price is volatile – so be prepared for that! However, if you stick with them over time, there’s a good chance that you’ll see returns for your investment.
Some Famous Cryptocurrencies
The top eight cryptocurrencies by market capitalization are:
Bitcoin (BTC) value is $20,018.
Market cap: $413 billion
Since it was the first cryptocurrency, Bitcoin is still the coin that most people think of when discussing virtual money. The currency made its debut in 2009 and has since experienced a roller-coaster of a ride. The cryptocurrency didn’t enter the public mind, nevertheless, until 2017.
Market cap: $208 billion
The second term you’re most likely to be familiar with in the crypto world is Ethereum. The system’s currency, called ether, can be used for a variety of tasks. However, Ethereum’s smart contracts are a big reason why it is so popular.
BNB (Binance Coin)
Market cap: $49 billion
The cryptocurrency known as Binance Coin was launched by one of the biggest cryptocurrency exchanges in the world, Binance. Although Binance Coin was first designed as a token to pay for reduced transactions, it is now being used to make payments and buy a variety of goods and services.
Market cap: $17 billion
XRP, also known as Ripple, was established in 2012 and provides a means of making payments in a variety of different fiat currencies. Ripple can help with cross-border transactions because it uses a trustless method to make payments easier.
Market cap: $16 billion
The cryptocurrency framework that underpins the ADA coin is called Cardano. Cardano, which was made by one of the developers who created Ethereum, also uses smart contracts to help manage identities.
Market cap: $12 billion
Solana is a more recent cryptocurrency that was introduced in March 2020. It boasts of the quickness with which transactions are completed as well as the general durability of its “web-scale” network. The total number of coins that may be issued in the SOL currency is 480 million.
Market cap: $9.3 billion
Dogecoin gets its name from an online meme that features a Shiba Inu dog and was first made as a joke following the run-up of Bitcoin. In contrast to many other digital currencies, which have production limits, Dogecoin offers unlimited issuance. It may be used to transmit money or make payments.
Polka dots (DOT)
Market cap: $8 billion
Polkadot, a digital currency that was introduced in May 2020, links the blockchain technology of several distinct cryptocurrencies. One of Polkadot’s creators is an Ethereum co-founder, and some industry observers think Polkadot has the potential to unseat Ethereum.
Where Can I Buy Cryptocurrencies?
There are a few different methods through which you can buy cryptocurrencies, but one of the safest is through an exchange.
How to Invest in Cryptocurrencies
There are a few ways to invest in cryptocurrencies:
- Buy low, sell high: This is the simplest way to make money with cryptocurrencies. When the price drops after a massive crash, buy them and sell them later when they rise back up in value.
- Start investing in cryptocurrencies like Bitcoin or Ethereum: These are two of the most popular cryptocurrencies on the market and they typically rise in value over time.
- An ICO (Initial Coin Offering): This is a newly emerging way of investing in cryptocurrencies. ICOs are similar to IPOs, but there is one important difference: instead of selling shares of a company, investors buy tokens that give them the right to future benefits from the project behind it.
Before you start investing in cryptocurrencies, you’ll need to make sure you have the necessary financial resources to invest in them. You’ll also need to be comfortable with the risks involved. Though cryptocurrencies are still relatively new and volatile, there is always the risk of losing your entire investment.
Be sure to store your cryptocurrencies securely. Keep them in a safe place like a digital wallet, and make sure you keep up with updated security practices.
All in all, cryptocurrencies are an interesting and potentially lucrative investment option. But like anything else, it’s important to do your research and be aware of the risks involved before you make any decisions.
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