The total cryptocurrency market value is projected to grow almost 5 times over by 2030 to an estimated 4.94 billion dollars according to one recent survey. Investing in crypto now could be the opportunity of your lifetime.
If you want to learn how to start investing in cryptocurrency you need to do research and make measured decisions. Buying Bitcoin, investing in Ethereum, or buying other cryptocurrencies is easy, but it is also easy to slip up.
These 6 helpful tips will ensure that your crypto investments get a smooth start before heading into deep waters. Investing for beginners can be scary. Get the guidance you need right here by reading on.
1. Know the Different Kinds of Crypto
There are cryptocurrencies with all sorts of strange and hard to pronounce names. Dogecoin for instance developed as a joke and soon took off. There are also cryptos such as Unobtanium, PutinCoin, and TrumpCoin.
These thousands of smaller, and weirder, cryptocurrencies are not the best for initial investors. The big two to pay attention to are Bitcoin and Ethereum. Another major rotating crypto usually vies for the third most popular spot.
2. Choose Your Method of Storage
Once you purchase cryptocurrency you need to find a place to store it. The easiest solution is to either set up an account on a major exchange or get a crypto wallet. You can also store crypto on a hard drive but this is risky.
The advantage of having a crypto wallet is that you can purchase cryptocurrency at a Byte Federal Bitcoin ATM, not just only through an exchange or third party. Try experimenting with all three storage options.
3. Remember Your Password
Everyone has heard the stories online about a potential crypto big-shot who forgets their password and misses out on their fortune. Don’t end up like one of these people. Write your password down and store it somewhere safe.
Nothing is more infuriating than knowing you have access to thousands, if not millions, of dollars in crypto somewhere only to realize you can’t access it. Sometimes it’s the simplest tips that save you the most trouble.
4. Know How Much You Can Lose
Investing for beginners is much like gambling for beginners. If you don’t put too much money on the table, you can’t lose very much. Set a limit for how much you want to invest until you figure out how the market works.
5. Analyze Market Trends
If you invest some money in crypto and forget about it, it will probably increase in value but you won’t learn anything. After you have made your investment, analyze market trends and see how the economy influences crypto prices.
After a few years of analysis, you may start to see patterns you can utilize to make educated buying or selling decisions. The more you notice, the greater chance you have at success.
6. Don’t Forget to Pay Taxes
When cryptocurrency first started it was a vastly unregulated marketplace. In recent years the government has pulled in the reins of crypto marketplaces and started to watch them like a hawk. So has the taxman.
When tax season comes around you need to include your crypto earnings as capital gains. If you forget to do so don’t be surprised if the IRS comes a-knocking looking for their share.
Know How to Start Investing in Cryptocurrency
Investing in Bitcoin and other cryptocurrencies can seem overwhelming, but it doesn’t have to be. Getting off to a good start by learning how to start investing in cryptocurrency right away is a great idea.
Use the 6 tips in this guide to ensure that your initial investment experience is a good one. Keep at it and keep learning all you can about crypto and you may even hit it big. For other amazing articles like this one hunt around on our site.