Cryptocurrency is an online money system that is used to doing secure business transactions. And in this article, I am going to tell you how to invest in Cryptocurrencies and how it works.
Investing in cryptocurrency is not as straightforward as physical currency. You have to understand it properly before investing in it.
A Complete Guide on How to Invest in Cryptocurrencies
Let’s start the whole discussion step by step in detail.
When Should You Buy Cryptocurrencies?
Even though there is no general deciding factor in picking the time to buy cryptocurrencies, it is advised not to buy when it is at the peak of its increase. Best time to buy is when the price is stable or low.
The tricky part to buy it is knowing when the crypto is in peak mode and when it reached the bottom. To ensure you get it right, make sure you take time to watch the growth pattern. It is important to identify when there is a through and not just a minor dip.
For example, in the graph, the ideal time to invest in that particular cryptocurrency was between 2015 and 2016.
Where to Invest In Cryptocurrencies
Cryptocurrencies are traded on their online platforms, just like stock markets run stock exchanges. To get the best offering, it is advised to invest in more extensive currencies as they have a more significant market and a higher probability that your trades will be successful.
The most popular currencies are GDAC, Kraken, Bitfinex, and Gemini and they provide good volume to trade Bitcoin and Ethereum with the US dollar through credit cards or bank transfer. The main difference between these currencies are the fees and user interfaces.
For other altcoins, Poloniex is more viable, and it is a diverse exchange that offers over 80 crypto coins but only funds using the Bitcoin or other altcoins.
After selecting the exchange means, you’ll then have to verify your account within 2-3 working days with identification documents like:
- Driver’s License,
- Passport or
- ID Card
This information is vital to exchanges as it enables them to verify your financial information so that scammers can’t use fake credit card details.
How to choose a Cryptocurrency Wallet?
Choosing a Cryptocurrency wallet is itself a lengthy topic. So I want that you read the following step by step tutorial on how to choose a Wallet.
Send and Receive Funds Using the Wallet
After getting your wallet, it becomes easier to transfer the funds. To move cryptocurrency out of the exchange, all you have to do is paste your wallets public key into the extensive website and send it.
If you want to buy, paste the exchange’s public key into your wallet’s transaction contract and confirm. You can also scan QR codes when using mobile wallet apps. Each wallet transaction cost a portion of the cryptocurrency you are selling.
I hope you have enjoyed reading the article, how to invest in Cryptocurrencies. If you have any questions regarding this, you can ask by commenting. I’d like to solve your problems.
Ernesto Lee is a Blockchain expert, you can also hire him or ask questions related to cryptocurrency. He is a real expert and can guide you really well.