My Crypto Investment Strategy
Cryptocurrency is a form of payment that can be exchanged for goods and services. Many companies issue their own currencies, known as tokens, and these tokens can be traded for the goods or services they offer. Think of them as if you were buying slot machines or casino chips. You will need to convert real currency into cryptocurrency to access the services. Sources: 3
In general, a cryptocurrency is a digital currency that is encrypted and decentralized. Bitcoin, the first and best-known cryptocurrency, is based on blockchain technology, a permanent decentralized ledger system. Although Bitcoin is the most popular and valuable cryptocurrency, it has also led to the creation of thousands of alternative old coins. The next variants of Bitcoin are Bitcoin Cash, Bitcoin Diamond etc. Others that focus on privacy are Monero and Zcash. Sources: 4
Ten years ago, most people would have laughed at you when I said that you could hold part of your investment portfolio in cryptocurrencies, a kind of virtual currency backed by various cryptographic and computer-generated means. You see, there was a time when you couldn’t invest at all if you had never traded a single Bitcoin, Ethereum or Litecoin in your life. It’s not just cryptocurrency these days, it’s not just for day traders and nerds. Indeed, many traditional companies integrate cryptocurrencies in some form into their platforms or use them as a means to bring other types of products to market. Sources: 2
At the moment you can choose from a nice selection of cryptocurrency savings accounts. In the near future, you can sign up for the world’s first Bitcoin Rewards credit card offered by Blockfi. The Blockfi Bitcoin Rewards Credit Card works in a similar way to a traditional reward credit card, with a 15% refund on purchases made with Bitcoin as a reward currency. Sources: 2
Investing in CME Group, which operates one of the largest bitcoin futures exchanges, is a great way to capitalize on the growth of digital asset trading. As we mentioned earlier, Square and PayPal offer their users cryptocurrency services, so they are well positioned to benefit from the increasing use of Bitcoin and other digital assets. Sources: 0
If you plan to invest in cryptocurrencies, these tips can help you make an educated choice. Cryptocurrency exchanges offer the opportunity to buy and sell digital currencies, and according to Coinmarketcap.com, there are over 500 exchanges to choose from. Do your research, read reviews and talk to experienced investors before you move in. Before you invest a dollar, learn about the exchange of cryptocurrencies. Sources: 6
Cryptocurrencies are a good investment if you want to deal directly with the demand for digital currency and associated projects and companies. But, like most investments, cryptoinvestments involve a multitude of risks and huge potential profits. Investments in cryptocurrencies and blockchain projects do not come with the same focus when investing in cryptocurrencies. There are certain risks in the cryptocurrency market that are not as widespread in traditional financial markets such as equities and bonds.
