16 Oct
16Oct

Let’s take a deeper look at the phenomenon and the important things to consider before investing in it.

How to invest in cryptocurrency is a question that many of us have asked ourselves. It has arguably been the biggest revolution in the finance industry in the last few decades. You now have the opportunity to boost your investment portfolio beyond the traditional means. All thanks to the extensive growth of digital technology and the financial market.

Some expect cryptocurrency to eventually replace traditional currencies like the dollar. (Source: Pixabay)

Introducing cryptocurrency

The first step when learning how to invest in cryptocurrency is to know exactly what it is. Cryptocurrency is a digital currency based on a ledger that is decentralized and secured by cryptography. An example is bitcoin, the world’s first major cryptocurrency.Here’s a quick breakdown of its components for easier understanding:

  1. Currency: A recognized medium of exchange for goods and services. Money has evolved from the barter system and precious metals to paper notes and digital currency.
  2. Ledger: A medium for recording and validating financial transactions. Think of it as one big spreadsheet.
  3. Decentralized: Traditional financial institutions operate on a centralized ledger that is controlled and maintained privately. A decentralized ledger is not controlled by one institution. Instead, every computer in the Bitcoin system has a copy of the ledger and is involved in its maintenance.
  4. Cryptography: A branch of maths and computer science associated with making and breaking codes. Cryptography is the technology that makes cryptocurrency secure and decentralized.

Now let’s bring it all together. Cryptocurrency is a digital medium of exchanging goods and services based on a publicly accessible ledger in a secure system. The government and banks do not control it. Instead, it’s owned and controlled by everybody in the system.For example, bitcoin is a cryptocurrency created to break free from the government and banks’ mismanagement, corruption, and control of the world’s money. It’s also pseudo-anonymous. Meaning, while the transaction is publicly available on the ledger, the identity of those transacting remains hidden.The bottom line is that cryptocurrency was created to democratize finance. All you need to get into the system is your phone and knowledge of how to invest in cryptocurrency such as is harmony one a good investment. No permission is needed.

Important things to consider before investing in cryptocurrency

Confront your motivations

When it comes to investing, we have different goals that drive our investing decisions. It’s not different for cryptocurrency. Why do you want to invest in cryptocurrency? Are you:– Jumping on the bandwagon?– Lured by the prospect of getting high returns in a short time?– Looking for an alternative investment to the stock market?– Motivated by a more compelling reason like the problems the project is solving?Before even learning how to invest in cryptocurrency, you must first determine why you want to do so and decide if it’s worth the risk or how to invest 10000 dollars quick return.

Do your research

One of the things you will realize while learning how to invest in cryptocurrency is the dangers of the freedom decentralized p2p companies offer. For instance, there are no help desks. If you lose your wallet or send money to the wrong account, your money is gone for good. So you have to be cautious.

With any investment, it’s vital to do your research before making your move. (Source: Pixabay)

Learn all you can about cryptocurrency, blockchain technology, and the crypto projects you’re interested in investing in, like bitcoin, ethereum, and the others. This knowledge will help you make well-informed decisions, including choosing the best crypto exchange for you.Join online cryptocurrency communities to stay informed with new developments and keep up with the latest trends. Make sure you do your research and avoid basing investment decisions on the opinions of others. 

Know their motivations

The crypto world is fast-paced, and most beginner investors become excited and get caught up in the hype. Don’t make investing decisions based on only the price trend and hype around it.It’s crucial to read the white papers of the cryptocurrency projects you plan to invest in. such as what is qtum coin etc. Find out the developers’ motivations because the best cryptocurrency platforms are the ones that solve big problems. It makes sense too. If people are passionate about the cause, they will put their weight behind it.Also, rather than focus on the price of the coin, consider the percentage of the overall market cap that you’re buying. The closer a coin is to the market cap, the higher the demand to sell will be in the future. Limited coins like bitcoin are historically perceived to do better.

Mitigate the risks

Pay attention to these few ways you can mitigate the risks after learning how to invest in cryptocurrency:

  • Know the risks: The cryptocurrency market is highly speculative and volatile. Some people even categorize it as gambling. Don’t invest money you can’t afford to lose.
  • Diversify: The best way to mitigate investment risk is to diversify your portfolio. Resist the temptation to invest in only the popular coins like bitcoins. Invest in other projects to limit your loss if one crashes.
  • Have a strategy: Having and working from a predetermined plan will help you avoid making panic-driven decisions. Make an investment strategy that informs when you enter and leave the market. Also, notice the market trends and plan for them in advance.

Cryptocurrency is a high-risk, high-reward investment. Ensure you do your research, assess your risk appetite, and your financial health is in order before you venture into it. 

How to invest in cryptocurrency

Now that you know what to look out for when learning how to invest in cryptocurrency, it’s time to explore how to invest your cryptocurrency to borrow against bitcoin and earn even more. 

While bitcoin might be the one everybody knows about, there are hundreds os viable alternative cryptocurrencies. (Source: Pixabay)

MyConstant is one of the best p2p platform that you should explore more.As a beginner investor, you might want to begin with an easy-to-use, relatively low-risk platform. MyConstant is one such solution. MyConstant is a US-based multi-market peer to peer lending sites bad credit. It has a proud record of no investor losing their initial investment to date. Instead of just leaving it in your wallet, our crypto lending platform offers you the opportunity to earn up to 7% APR on your cryptocurrency. It adds an extra stream of income to your cryptocurrency portfolio. If you are doutb about that, let’s read more p2p blog.

Invest with MyConstant Crypto Lend

Crypto Lend is MyConstant’s anytime-withdrawal investment account for cryptocurrencies. With Crypto Lend, you can earn interest on crypto 4% APY on Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) by supplying liquidity to lending pools and exchanges. You may also decide to accept your returns in PRV – Incognito’s native token – at 7% APR.Your interest is paid and considered as compound interest investments every second in the same cryptocurrency you use to invest, and you can withdraw anytime for free. MyConstant has also capped investments at $3M to ensure it can cover investor losses in cases where it or its partners are at fault. Futhermore, you can lend money online with following benefits:

  • Pays up to 4% APR on BTC, ETH, and BNB.
  • Option to take 7% APR in PRV (Incognito’s native token)
  • Interest compounded and paid every second.
  • Unlimited free withdrawals.
  • No minimum investment.
  • Available worldwide (non-US currencies converted to USD).

Sounds interesting? Sign up for a free account today and start investing. 

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