How to Invest in Cryptocurrency in Easy Steps: A beginners Guide to Bitcoin and Crypto Investing.
Cryptocurrencies have emerged as an asset class that provides you with a chance to invest and earn substantial returns. Cryptocurrencies let you buy goods and services, or trade them for profit.
Cryptocurrencies are digital assets that trade on a 24/7 global market. If you’re thinking about adding cryptocurrencies like bitcoin, ether, or dogecoin to your investment portfolio, you have several options for doing so.
Despite the lack of government backing, this asset class has garnered massive popularity in recent years. The probability of handsome returns over a short period has propelled investors to jump onto the crypto bandwagon.
The most popular cryptocurrency, Bitcoin, has had volatile price moves this year, reaching nearly $65,000 in April before losing nearly half its value in May. In recent weeks, the price of bitcoin was back in the $45,000 range (You can check the current price to buy Bitcoin here.)
Since the creation of Bitcoin in 2009, thousands of other cryptocurrencies have surfaced, leading to the expansion of the global crypto market and the acceptance of virtual currencies as forms of payment.
Unlike physical fiat currencies (e.g., the US Dollar), cryptocurrencies are decentralized, virtual currencies that are typically used to purchase goods or services. These assets utilize blockchain technology to ensure that transactions between each party are secure.
Here are several things to ask about cryptocurrency, and what to watch out for.
1. What is cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology — a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Cryptocurrencies work using a technology called a blockchain. Blockchain is a decentralized technology spread across many computers that manage and records transactions. Part of the appeal of this technology is its security.
2. How many cryptocurrencies are there? What are they worth?
More than 10,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on Aug. 18, 2021, was more than $1.9 trillion — down from April’s high of $2.2 trillion, according to CoinMarketCap. The total value of all bitcoins, the most popular digital currency, was pegged at about $849 billion, regaining some ground from recent price lows. Still, the market value of bitcoin is down from April’s high of $1.2 trillion.
3. Why are cryptocurrencies so popular?
Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:
- Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable
- Some supporters like the fact that cryptocurrency removes central banks from managing the money supply since over time these banks tend to reduce the value of money via inflation
- Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems
- Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.
4. Is cryptocurrency a good investment?
Cryptocurrencies have many advantages. For one, you can buy them 24/7, so you won’t be limited to trading during set hours like regular stock exchanges that open from 9:30 a.m. to 4 p.m. ET. Prices also regularly fluctuate by large percentages, opening the door for big returns if that price swing falls in your favor.
Investing in crypto assets is risky but also potentially extremely profitable.
Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.
That’s what’s called “the greater fool” theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
For those who see cryptocurrencies such as Bitcoin as the currency of the future, it should be noted that a currency needs stability so that merchants and consumers can determine what a fair price is for goods. Bitcoin and other cryptocurrencies have been anything but stable throughout much of their history. For example, while Bitcoin traded at close to $20,000 in December 2017, its value then dropped to as low as about $3,200 a year later. By December 2020, it was trading at record levels again.
This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?
How to Invest in Cryptocurrency in Crypto Exchanges or Cryptocurrency Investment Company
Here’s how to buy cryptocurrency — along with an outline of where you can buy it and the different types of investment vehicles you can use for exposure to it.
1. Choose a broker or cryptocurrency exchange
If you’re interested in buying and selling cryptocurrency, the first step is choosing a platform to do so. Generally, you can choose from a traditional broker or dedicated cryptocurrency exchange.
- Traditional brokers: There are a few online brokers that offer ways to buy and sell cryptocurrency, in addition to other assets like stocks , bonds , and ETFs . These platforms tend to offer lower trading costs but fewer crypto features.
- Cryptocurrency exchanges: You’ll have many cryptocurrency exchanges to choose from, each with varying offerings of cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.
As you’re comparing different platforms, it’s wise to consider things like supported cryptocurrencies, security features, fees, storage and withdrawal options, and educational resources.
A crypto exchange is a platform dedicated to buying and selling cryptocurrency. Each exchange has its own rules when it comes to the buying, selling, and trading of cryptocurrency.
The best exchange for you depends on your needs, but beginners should look for exchanges that offer simple web and mobile interfaces, educational resources, and readily available customer support.
Depending on the crypto exchange, you can trade one cryptocurrency for another, or exchange fiat money (like the US Dollar) for cryptocurrency, or vice versa. Prices are based on daily market rates.
2. Fund your account
After you’ve chosen a crypto exchange or online broker, you’ll need to fund your account to begin trading. “Although it differs by platform, most crypto exchanges allow users to purchase crypto using fiat currencies such as the US Dollar or the Euro using their debit or credit cards.
Tatibouet adds that you can usually either use Visa or Mastercard bank cards to make purchases.
However, crypto purchases with credit cards are especially risky and some exchanges, such as Coinbase, don’t support them. Some credit card companies don’t allow crypto transactions either. Cryptocurrencies are highly volatile assets, and it may not be the best idea to risk going into debt — or potentially paying high credit card transaction fees — for certain assets.
Another option platforms typically accept is ACH transfers and wire transfers, but the accepted payment methods and time it takes for deposits or withdrawals differs per platform (and not all exchanges accept credit cards).
Plus, the time it takes for deposits to settle varies for different payment methods. For instance, ACH transfers at Coinbase take three to five business days. However, debit card transfers are instant, but wire transfers can take one to three days.
Another thing to look out for is fees. You may run into deposit/withdrawal transaction fees in addition to trading fees. And the fees you pay for funding or withdrawing from your account typically depend on your payment method.
For instance, Coinbase charges a 3.99% fee for debit card transactions, and it charges $10 for wire transfers. ACH transfers, however, are free.
These fees vary per exchange, so you’ll want to pay close attention to each platform’s prices before you get started.
3. Place an order
You can usually place an order with the click of a button on your broker’s or exchange’s web or mobile platform. If you’re planning to buy cryptocurrencies, you can do so by selecting “buy,” choosing the order type, entering the number of cryptocurrencies you’d like to purchase, and confirming the order. The same process applies to “sell” orders.
But when it comes to transactions, the type of order you select affects the price at which your order is executed. There are generally three types of orders: market orders, limit orders and stop orders.
In general, you’ll basically have all the order options available if you were buying any other asset.
“The three most popular order types used by global exchanges are spot, margin, and futures trading,” says Tatibouet. Spot trading is when users place “buy” or “sell” orders on the open market to be filled as soon as the price hits their specific target.
“Margin trading is where users are able to trade in larger quantities than they can afford to by ‘borrowing’ funds from others, with many exchanges allowing a multiple of up to 20 times the trader’s capital,” says Tatibouet. “Finally, futures trading is when two parties agree on a specified price at a specified future date on any supported cryptocurrency.”
4. Select a storage method for your assets
After you’ve purchased your cryptocurrency, you’ll need to find a place to store it in a safe place to protect it from hacks or theft.
This is where cryptocurrency wallets come in. A crypto wallet is a physical device or online software used to securely store the private keys to your cryptocurrencies. Some exchanges offer built-in wallet services, making it easy for you to store directly through the platform. But all exchanges or brokers don’t automatically provide wallet services for you.
How to Invest in Cryptocurrency with a Cryptocurrency Investment Company
Bitcoininvestmentrex is a Cryptocurrency Investment Company / crypto-investment platform focusing on producing passive income on the core assets, such as BTC, ETH, BCH.
Having being voted as the most trusted cryptocurrency investment company, Bitcoininvestmentrex is one of the most popular Legit and Trusted Bitcoin Investment Sites that offers secure, safe, and user-friendly platforms for investors to invest in cryptocurrency and earn profit with ease.
The platform asks you to choose a preferred cryptocurrency, invest as much money as you wish and allow Bitcoininvestmentrex to work behind the scenes.
Bitcoininvestmentrex has a strong support team available 24/7, the middle time to solve a user’s case is around 10 minutes according to its Intercom chat
While there is not a customer service phone number, you can live chat with a member of the Bitcoininvestmentrex team on the website.
Bitcoininvestmentrex Users Benefits
Passive income is the greatest benefit of this platform. You invest in Midas, and weekly dividends land in your account every week. Whether you are a novice or continually growing your retirement portfolio, you know you are making money.
You can tailor your investments to the percentage of profit you wish to earn, reducing or increasing your risk depending on the price of the investment plan and its guaranteed dividends.
Bitcoininvestmentrex employs a defensive strategy to minimize risks and protect your portfolio from the volatile nature of cryptocurrency, by converting your coins to stable assets that will increase capital appreciation and profit preservation.
Bitcoininvestmentrex Investments vs Competitors
Bitcoininvestmentrex Investments uses cryptocurrency to curate a specific investment opportunity. You learn how to make money with cryptocurrency instead of investing blindly in a random coin.
Some differences between Bitcoininvestmentrex and competitors:
- The platform has higher guaranteed yields to get paid to customers
- Bitcoininvestmentrex is friendly and wants to educate its community
- Focusing on the long-term strategy investment
There are guaranteed yield portfolios that offer weekly profits. You can plan for purchases, retirement, college tuition, and other expenses using your initial investment.
The platform deposits your dividends at the maturity of your plan based on your guaranteed dividend. Because of Bitcoininvestmentrex Investments you to compound your profits in its unique platform, you continue earning higher and higher dividends.
You can buy into gradually increasing investment models. As your initial investment rises, you earn higher dividends.
Bitcoininvestmentrex Investments hosts a community of users who can share information, help others and market the platform organically. If researching investments seems daunting, you might feel more comfortable discussing strategy with experienced users.
While the customer support could be a little more robust, Bitcoininvestmentrex provides guaranteed dividends, a large selection of investment plans, and a library of cryptocurrency information. You can focus on long-term investments, planning for a large purchase, a rainy day, or even retirement.
Fees are low, and you can grow your net worth without becoming a cryptocurrency expert — Bitcoininvestmentrex fills that role for you. Plus, Bitcoininvestmentrex is open, honest, focused on the long-term, and cares about the performance of your investment.
Since its inception, Bitcoininvestmentrex has launched many products, which include Yield Automated Portfolios (indexes that product yield) and BTC/USD low-leverage trading algorithms.
The core principles of Bitcoininvestmentrex are:
- Seek for long-term
- Sincerely care about clients
- Be open and honest
Those are the fundamentals that allowed us to survive during crypto-winter.
How to Invest in Cryptocurrency with Bitcoininvestmentrex
The following steps will guide you in getting started with crypto investing on Bitcoininvestmentrex.
- Choose your preferred Bitcoin investment plan
- Make your investment deposit to the digital address provided for you
- Fill out the registration form with your transaction ID, Rex Code, and submit.
- Your account will be successfully created after confirmation of your investment deposit by the support team.
- Now you can enjoy the benefits of cryptocurrency investing and start earning profits.
Advantages of Cryptocurrency Investments
The biggest advantage to investing in cryptocurrency is its upside potential. If Bitcoin replaces gold as a store of value, each coin would be worth over $320,000 (market cap of gold / total Bitcoins issued). Some investors are calling for Bitcoin to reach $1 million, as it will be a better and more accessible store of value than gold.
Ethereum has similar upside potential. Anyone who wants to perform a financial transaction with DeFi is required to pay Ether tokens to do so. For example, if you want to exchange tokens on Uniswap, buy an NFT, or get a loan on the blockchain you must pay an Ethereum transaction fee. Also, investors are locking up their Ether to earn interest through DeFi (and soon Eth2), so Ethereum tokens will become more scarce as more use cases are developed.
This content should not be interpreted as investment advice. Cryptocurrency is a volatile market, do your independent research and only invest what you can afford to lose.