You've probably been hearing a ton of news about cryptocurrencies like Bitcoin right now. If you've wanted to learn how to get started trading and investing in them, here's your beginners guide to get started! Check out this latest guide from guest blogger, Alex M from Coinpupil.com.
Cryptocurrencies are a new phenomenon that are shaking the foundations of currencies, banking networks, payment transactions companies and what not around the world. Their idea is based on the decentralization of things in which the control is taken away from one small group of people. The aim is to take it from the government, corporate companies, etc and giving it back to the people in a consensus-based environment where everything is decided by the free market.
It all started with bitcoin and its famed blockchain technology that was published in 2008 which the network was started in 2009. Bitcoin was a revolutionary way of not just currency ownership and transfer but also a breakthrough in computing, record-keeping and programming. It paved the way for the world’s first decentralized peer 2 peer money transfer and consensus-based networks.
The currency launched on these platforms were a means to continue participation and giving people incentives to work on the new platforms to make them secure or efficient.
Bitcoin is owned by a definitive number of people around the world. The record of who owns what is kept in the distributed ledger technology called blockchain. There are millions of computers around the world who are acting as record keepers in this consensus-based network and they are updating their system simultaneously together. This makes the entire network extremely safe and secure.
There are other alternate cryptocurrencies out there that are traded with fiat currencies like Dollar and Euro and Bitcoin itself. They include Ethereum, Ripple, Bitcoin’s forks, Litecoin, but most of the other hundreds of coins are traded with Bitcoin. All of this market combined is called the crypto market and is a unique trading market that is in some ways similar to the stock market or foreign exchanges but in many cases, it is extremely different.
WHY INVEST IN CRYPTOCURRENCIES?
The Cryptocurrency trading world has outperformed the stock market and the commodities exchange put together. The reason is that the industry is expanding in a full boom and currently there is nothing slowing it down. There are scores of bitcoin millionaires around the world who have made incredible sums of money just trading in bitcoin and other cryptocurrencies making profit from their rise and decline in prices.
So, this is an opportunity that shouldn’t be missed by any investor. Of course you need to understand the cryptocurrency market before investing in it and that is why you will need the help of a cryptocurrency exchange for this purpose but if done correctly, the crypto world can be a really amazing prospect for earning passive income from home.
HOW TO INVEST IN CRYPTOCURRENCIES?
The crypto trading community has come a long way since its inception a few years back. Bitcoin started this whole phenomenon and eventually it expanded to include other cryptocurrencies as well. Investing in cryptocurrencies is extremely easy. You just need to open an account in a reliable cryptocurrency exchange (Coinbase, Bitfinex, Bittrex, Bitstamp, etc), register on it and then you are ready to buy your first Bitcoin. You can make purchases through your credit or through your bank account.
First buy a small number of Bitcoin and then learn how to use the platform to trade in between different cryptocurrencies. You will realize how simple the technology is yet how volatile the currency is (which means bigger profit margins).
One thing we encourage is to not invest emotionally. Always research and study what you are going to put your money in. This way you won’t be pressured to sell a specific coin if the price goes down. Understanding the coin’s fundamental value is very key. If you don’t believe in a specific coin or understand why it can do well, it is best not to invest in it. It is also a good idea to check the community. Does it have a big reddit community? What are people saying about that coin itself? How is the team? Are they transparent? Do they keep making updates?
Investing in a coin requires more than the coin itself. On top of all that, we are not financial advisers nor do we advise where to put your money. Cryptocurrencies have been a really hot topic recently and we wanted to give you the jist of it. Don’t forget to never put more money into a coin than you are willing to lose.
Alex has been very deep in the cryptocurrency space for the last 3 years soaking in everything there is to know. With such a new industry popping up, Alex is constantly sharing about the latest news and updates in cryptocurrencies on CoinPupil. To learn more about him and his work, read here.