With the numerous investment opportunities out there, it can feel like a very confusing area to get into, especially if you have no experience of it in any manner. But cryptocurrency is something that we’ve all heard of, but have formed our own opinions of, whether positive or negative. The fact of the matter is, cryptocurrency, much like any other stock or share, is about playing the long game. No stock or share is guaranteed to be a sure thing, but getting into cryptocurrency through a digital wallet can provide a few advantages for the modern and novice investor. Let’s go through it.
Put simply, cryptocurrency is a digital currency. You can define it as a somewhat organic method of money, the crypto aspect refers to the fact that the money is encrypted by specific algorithms and techniques.
The allure of cryptocurrency is that it can be made easier to transfer funds directly, rather than through a third party like a bank. This is done through public keys and private keys, via a person’s wallet. Because the transaction fees are minimal in nature, this means that we pocket more. What’s more, there is the Blockchain. This is an online ledger that provides a minimal threat from hackers, and can be copied across various computers that run bitcoin software. Bitcoin is one of the more popular, if not the most popular currency out there, but there are others. However, because bitcoin has such an intense focus, this means there are various methods of investing in it…
Investing In Cryptocurrency
Cryptocurrency is, much like any other stock, investable. As you can set up a digital wallet through many different websites, you can get onto the exchanges. With a currency like bitcoin, there are so many different ways to make it a sound investment; there are numerous articles talking about the bitcoin bluff can highlight if a certain method will suit you. But you can get started right away by getting your digital wallet on these exchanges and gaining access to the cryptocurrency marketplace, so you can exchange your currency in return for the equivalent in cryptocurrency.
What’s The Risk?
Like any stock, it comes with its fair share of risk. In order to actually make a decent amount of money from it, you may find yourself investing time, as well as money. This is true of any stock. If you’re someone that’s looking to make a lot of money quickly, it simply doesn’t happen that way, unless you are very, very lucky. It’s more about having a healthy practice in terms of securing your stock. Because various online exchanges have been hacked in the past, it can naturally raise an eyebrow or two.
Cryptocurrency isn’t just about an online method of trading, cryptocurrency is looked upon as a currency that’s able to keep its value, especially in terms of the other currencies that rise and fall. In addition to this, the somewhat anonymous nature of it, as it travels online, can appear to be more transportable than other valuable metals but as it’s outside a centralized framework, this can prove to be a unique currency to invest in.
Cryptocurrencies have become very popular over the last few years. More shops than ever before are accepting this sort of money, and financial experts across the world are recognising it as a potential future for the financial services people use. There are countless success stories surrounding this field, with a lot of people making their fortune through options like Bitcoin and Etherium, but is there room for someone new to join the fold? To help you to figure this out for yourself, this post will be exploring the current state of cryptocurrencies, giving you an idea of how well they can be used to make money in modern times.
Cryptocurrencies have changed investing and global payment markets. The rise of Bitcoin since its beginnings in 2009 has created millionaires. Those that snapped up the currency for a few dollars a decade ago, now have an online wallet worth many hundreds of thousands.
Around 8% of Americans have purchased cryptocurrencies, and with new cryptocurrencies being born every week, the digital coins are clearly going to be a permanent fixture in the investing and digital finance landscape.
Here we break down the main cryptocurrencies currently in existence, dig into their ups and downs, and glance at their benefits and uses. For more information, visit journeytobillions for all things crypto and the latest industry news and developments.
By far the most recognizable name in the cryptocurrency landscape is Bitcoin. Bitcoin first emerged a decade ago, and in the superseding years has only cemented its dominance on the digital currency sector.
At the time of writing, Bitcoin’s price stood at $7,332.89, a drastic increase from 2015’s level of $300. Despite regular fluctuations, the price of Bitcoin has remained high since mid-2016s, rewarding early investors with ample gains
In addition to the financial rewards reaped by investors, Bitcoin has emerged as a functional digital currency. Companies like Microsoft, among others, accept Bitcoin as payment. Select stores and restaurants are also equipped with Bitcoin payment station and will accept the cryptocurrency as tender.
Litecoin was launched in 2011 by former MIT graduate and Google engineer Charlie Lee. Litecoin uses a faster block generation rate than Bitcoin, making its transactions much faster.
The creators decided that there could only ever be 84 million Litecoins. At the time of writing, there were approximately 20 million left to be bought and used. Once used up, should demand continue to surge, the value of Litecoin will only rocket upwards.
Having been launched in 2015, Ethereum is one of the younger cryptocurrencies on this list. But its youth did nothing to limit its popularity. The cryptocurrency quickly established itself as Bitcoin’s younger sibling, surging in popularity to become the second most important cryptocurrency.
Ethereum generated interest by launching a pre-sale in 2014 ahead of its initial coin offering (ICO) in 2015. This buzz translated into sales as investors snapped up ETH once it was made available.
While the price of Ripple is very small (less than $1), there is an exceedingly high number of coins in circulation.
Ripple’s major draw is the lightning-fast transaction speeds, which makes it ideal for investors and users who wish to quickly change currencies. Users buy and sell Ripple for a faster alternative to traditional currency trades, which can sometimes take multiple days to clear. Ripple transactions, on the other hand, can be completed in as little as four seconds.
Besides a faster avenue to buy and sell foreign currencies, Ripple is also a much cheaper method. Buying Ripple and selling it in exchange for foreign currency avoids bank fees associated with currency transfers. Among its many backers are Accenture and Google Ventures.
How You Make The Money
There are a number of different ways to make money through cryptocurrencies, though most people only know of one; mining. This involves using computers, servers, or special devices called ASICs to solve complex problems in return for the cryptocurrency. The problems get harder as more coins are mined, making it extremely difficult to mine enough once they become popular. Along with this method, you can also look into trading with cryptocurrencies, and this will work very much like a FOREX system. Of course, like any investment, some risk comes with whichever approach you choose, and this makes it worth doing your research.
Can Money Be Made?
As mentioned above, mining a cryptocurrency becomes more challenging as time goes on. This has left options like Bitcoin almost impossible for normal people to mine, instead leaving the job to those who can afford huge arrays of powerful computers. If you’re able to find a new currency to mine, it should be a lot easier, but you will have to hope that it becomes popular in the future to enable you to make some money back. Trading will always be an option, though you will have to learn the market like the back of your hand if you want to be successful with it.
Getting Some Support
Like any emerging field, cryptocurrencies can often be confusing, leaving new investors feeling overwhelmed. In reality, though, you have everything you need to learn about this field waiting for you on the web. Using online resources you can learn about trading software called Bitcoin Trader, current market trends, and a host of other information which will be useful to you as you move through this complicated environment. As time goes on, resources like this are only set to improve, making it easier and easier to get your hands on the information you need to become an expert cryptocurrency miner or trader.
With all of this in mind, you should be feeling ready to take on the challenge of making money out of cryptocurrencies. To answer the question in the title, you can most certainly make money in this field. Of course, though, you’re going to have to work hard for it, and you won’t have much room to make mistakes. This field isn’t a kind one, and a lot of people have lost money while trying to work with it.
There’s no doubt that you’ve heard of cryptocurrency trading by now. Ever since the advent of the digital age ushered in cryptocurrencies to the market a few years ago, it has taken the world by storm. All over the globe, people are looking to mine coins, gain profitable positions in cryptocurrency, and then trade that crypto to further improve that position.
If you’re looking to get started with cryptocurrency trading, but are unfamiliar with the whole concept, then you’re in the right place. In this article, we’ll take you through Cryptocurrency Trading 101 — what it is and how it works.
What Is a Cryptocurrency?
First things first: let’s focusing on understanding what exactly a cryptocurrency is.
In short, cryptocurrency is a type of internet-based exchange. It’s unlike every other “real” currency in two major ways. Firstly, there are no physical manifestations of cryptocurrency. You can’t cash out your crypto stores, ever.
Second, cryptocurrency is not moderated or owned by a single government source. So while the United States dollar is moderated by the United States government, and backed up by the Federal Reserve, that’s not the case with cryptocurrency.
The ramifications of this are twofold. One, because the cryptocurrency is not government moderated, it can skyrocket in value and be much more volatile in the market than any traditional foreign exchange.
Second, because there isn’t anything in a Federal Reserve backing it up, that also means that its value can drop like a rock and you can lose your shirt if you’re heavily invested in it.
The second point is precisely what puts many people off cryptocurrency. They’re worried about losing their money by investing in a faulty currency.
How Are Coins Mined?
A cryptocurrency coin is mined by using a computer’s processing power in order to solve complex algorithms. At the end of each algorithm is a coin. That’s why many organizations and companies have set up massive computing stations that work day and night on mining coins, in the hopes that the coins found will outweigh the costs of fueling the processing power.
Typically, an individual mining coins on a single workstation simply isn’t going to work. Far too much processing power is required for far too long for it to be a legitimate income source.
How Do You Do Cryptocurrency Trading?
Cryptocurrency trading is significantly easier to get started with than most folks think. The reason being, there are many different platforms that take all the heavy lifting out of the process.
Simply deposit some money from your “real” bank account, select which cryptocurrency you want to purchase, and voila. You now have a certain amount of crypto coins that you can trade on the crypto exchange market as you see fit. Get started today by taking a look at this TradeSanta Binance Review.
The extensive use of cryptos has created much confusion in the mind of investors. It is not because they are so volatile, rather, it is because scammers are always trying to take advantage of illiterate investors. For instance, if you buy cryptos from an unregulated site, you might not get anything in return. They will take your money and there is nothing you can do. You need to prevent yourself from making such transactions and only then will you be able to secure your crypto fund.
The elite investors in the crypto industry follow some common investment rules. With the help of those rules, they are keeping their funds safe. Let’s find out some of the details about how professionals manage their funds and make some serious profit.
Choose your broker very carefully
The first thing that you need to consider is the quality of the broker. If you deal with a scam broker you might lose a huge amount of money. For this reason, the top investors in the world love to deal with bigX. They are well regulated and have developed a strong track record in the financial industry. Read more about finding a good broker so that you don’t end up being scammed. One of the easiest ways to find a scam broker is to analyze their portfolio.
You can easily do this by accessing their website. In most cases, scammers fail to keep the contents updated on their website. It more as they deal with a static website with zero potential updates. The scammers just set the trap and wait for the rookies to make some serious mistakes.
You need to assess the market condition to ensure a profitable deal. Dealing with the cryptocurrencies requires strong knowledge of some of the most important parameters in the trading industry. For instance, you must have technical knowledge so that you know when to buy and sell cryptocurrency. If you take trades or deal with crypto-based on emotions, it won’t take much time to lose your savings.
Learn about the different stages of the market trend so that you can open or close the trade at the perfect time. Though it might sound a little complicated it is one of the easiest ways to ensure profitable deals.
Be prepared to lose trades
If you want to make money by trading crypto, you need to know losing is very common. It’s more like trading the stock market. No one can say they can make money 100% of the time by trading stocks. Just like this, being a crypto trader, you must be prepared to deal with the losses. But this needs to be done in an organized way. If you take too much risk and try to earn a huge amount of money by taking a leveraged account, you might lose a big trade.
The maximum risk you should take in a single trade should never exceed 2% of your initial investment. By following this simple rule, you will be able to accept the loss and this will help you to make better decisions.
Control your emotions
Learning about emotional mistakes in investment business is a great way to become a skilled investor. Taking steps with emotions always results in big losses. Some of you might think the professionals never become emotional. In reality, they often lose control of their emotions, but they manage to control the loss by using stick money management.
Emotional trades might cost you 1% loss but it should be never more than that. Find trades with high risk to reward ratio so that you don’t end up with a poor recovery factor. Be a smart trader and act as a professional business person. Always evaluate the risk before you invest even a small portion of your capital.
Mention the word Bitcoin to many people, and the response will range from rolling eyes, shrugged shoulders, and possibly an exasperated ‘No idea mate’, to knowing smiles, a conspiratorial wink and a ‘Yes mate, I’m on it’.
Which tribe do you follow?
First released in January 2009, Satoshi Nakamoto’s vision was to create a digital currency, without the need for what you may call ‘a middle man’, such as a banking institution, that could be sent from a digital wallet from one owner to the other, across the internet. In short, an alternative currency, cash for the Internet.
One of the purposes of the inception of Bitcoin was to take power back from the financial central authorities, who most of us trust, fairly blindly, with our hard earned cash, by creating a digital payment system powered by the people, not the institutions.
So what exactly is a Bitcoin
Well it’s really just virtual money. You can’t put it in your pocket, and buy a round of drinks with it at the pub, and you won’t be getting a Bitcoin out of the cash point any time soon.
It’s just online cash, a computer file, and your wallet in this case is just a digital one, like an app on your computer or smartphone.
Yes you can use Bitcoin to buy products and services, by sending them to other people in payment, but unlike our normal methods of online payments, there is no third party involved taking a fee, such as Paypal or Western Union.
How Do You Obtain Bitcoins
You can buy Bitcoins using real money from https://swyftx.com.au/b uy/btc-bitcoin/, or you can let people pay you with Bitcoins to increase your assets.
Every transaction is traceable, making it an extremely secure currency, and people can’t spend Bitcoins they do not own or renege on a transaction. No money laundering opportunities here!
But you can spend your Bitcoins anonymously, a bit like your secure passwords, nobody would know your account details, unless you told them.
Back in the day, there were many different types of commodities used as currency, with not an extreme coupon insight. Cocoa beans were considered very valuable by the Aztecs. Salt, tea and peppercorns have also been used for bartering and payment purposes. So these days, anything that has a value, such as Bitcoin’s virtual value, can be used as currency.
With Bitcoin, there is no need to worry about Bank Holidays or any other time delays which may affect your ability to send or receive money, you are in charge.
It doesn’t matter when, or where you are in the world, you can buy or sell products and services immediately, and you won’t have to part with any of your personal information whilst making the transaction, a great defense against identity theft.
All transactions are transparent, and available for everyone to see, although your personal information is not available. Nobody can manipulate your account or hack into it as it is cryptographically secure.
As with any investment, do your research and get the facts before you dive in. Bitcoin is still all a bit new, and it’s a strange concept to many people, but then so was decimal coinage not so long ago!
Crypto Made Simple
Although initially complicated, cryptocurrency trading is made simple by the trading platforms available to use on the market. Now, you have no excuse not to get on one of those platforms and start reaping the benefits of crypto trading for yourself today!
For more finance advice, be sure to check out the rest of the articles on the website!