How to Buy Cryptocurrency
If you want to jump on the train and buy cryptocurrency, this guide will teach you all about how to invest in a cryptocurrency. As far as some of the cryptocurrencies like Bitcoin and Ether have run this year already, the shocking truth is that the typical individual walking around still does not know what a digital currency actually is. Even the majority have never fully understood the leading alternative currency Bitcoin. This is what makes it so exciting. A whole world of potential still awaits for investors in the likes of Ethereum, NEM, Ripple, Litecoin, and yes Bitcoin, along with the other dozens of cryptocurrencies that have arisen in only the past several years.
This amazing new currency and asset class only started back in 2007, around a decade ago, with the rise of Bitcoin. The world’s first and still-leading digital currency has appreciated from less than a penny per share to over $5,000 as of last week (now just over $4,000 per BTC). Ethereum has similarly enjoyed a meteoric rise this year alone of from $8 per coin to over $400 apiece at one point. To say that these assets offer an intensely magnetic appeal to get rich is no exaggeration.
Not all of these offerings are true currencies though. Some of them are more like commodities. Others are quite like energy. Some are businesses existing on block chain technology. Yet each of them is a digital asset in one way or another. Looking at them this way helps to figure out what they are worth today, what they will be worth tomorrow, and whether or not you should actually plow your hard-earned investment dollars, euros, pounds, or Swiss francs into them in the first place.
STEP 1: Buying Cryptocurrencies – Obtaining A Wallet
The first key step in entering this brave new world is understanding at least something about the crypto-economy. Getting your “hands on” some Bitcoin is an excellent and almost necessary way to get started. You first need to establish a Bitcoin wallet in which to keep your digital currency. You have multiple options, but we would go with Coinbase.
After you have accomplished this, purchase some Bitcoin from a seller or an exchange and then send it over to your own wallet. Today there are dozens of Bitcoin exchanges from which you can reliably and safely buy the kingpin of digital currencies, along with literally hundreds of sellers. It is critical to start out small. Maybe buy a fraction of a BTC for $25 to $50 and become comfortable with an exchange or a particular seller. You can always purchase larger amounts later on and not suffer any penalties for buying fractional amounts upfront.
STEP 2: Buying Cryptocurrencies – Choosing a Trading Platform or Cold Storage?
Next you really need to establish an account at one of the exchanges or cryptocurrency trading platforms, but if you don’t plan to trade and are investing on the long run, you should consider Regal. The majority of the larger ones offer accounts at no cost. You only require an email address to get started. The largest on earth is now Poloniex.com. Other good ones include Kraken, Bittrex, Livecoin, SpaceBTC, and CoinDesk.
The most important criteria in picking out a good exchange or trading platform is to go for one with a lot of volume on it. This will permit you to buy or sell any digital currency with ease on demand and not have to wait for a counterparty to eventually show interest. Once you have this account established, you can move your Bitcoin from the wallet to the trading platform exchange. This will permit you to begin your buying and selling of the major digital currencies offered. Remember how important it really is to start out small.
If you want to keep things simple and safe, we suggest you get in touch with Regal Assets Dubai. Not only are you able to invest in cryptocurrencies with fiat but you are also insured by Llyod’s of London for the market value of your crypto worth. Based in Dubai, they will store your cryptocurrencies on a physical wallet in the famous Almas Towers vault.
Buying Cryptocurrency – Be Aware of The Volatility
You also need to be well-aware of and yes comfortable with the intense volatility which the digital currencies experience quite regularly. It is possible for Bitcoin or Ethereum to run up even 50 percent in a single week. That is the fun part. When they plunge by that much in three days, it hurts. This is why you have to understand that there is phenomenal risk in these new digital assets. No other asset class anywhere (not even silver) features the amount of risk and volatility that these currencies do. They are completely unregulated and plagued by fraud, scams, danger, and theft. This is why comparing the market to the “wild west” is no exaggeration. It makes the chase rewarding, dangerous, and thrilling all at once for new investors.
All this is to say that no one should attack investing in the alternative currencies with blinders on your eyes. Listening to those who have gone down the path ahead of you, experts and analysts, is essential. This will save you much heartache along the way and possibly thousands of dollars as well.
This is not to discourage you. Real investors in the major cryptocurrencies have experienced 5,000 percent price increases in a matter of six months (this year with Ethereum, in fact). Others have watched in glee as their investments rose by mind-numbing gains of triple, five-fold, and seven-fold in a matter of only from weeks to months. You will not find another (legal and completely legitimate) investment opportunity that can realistically double its value in one to two weeks’ time frame anywhere on earth.
Still the lesson in caution cannot be overstated. Just as many investors have bought in one of the major digital currencies on a high and lost their proverbial shirts on paper, cut their holdings, and then gone off to lick their proverbial financial wounds. Last week’s Bitcoin buyers at over $5,000 per BTC are now down around 20 percent in only a week at today’s around $4,000 per BTC prices. These price swings are more often the norm rather than the exception with the cryptocurrencies, even the ones that have been around since the early days or even beginning of the digital currency universe appeared.
Yet the truth is that the cryptocurrencies remain the single greatest opportunity in all of the history of money to jump in on what is still the ground floor to possibly make an enormous fortune in the coming few years. Just so long as you are mentally, financially, and emotionally well-prepared for the greatest risk in the history of money as well, you will be alright. Make sure you get in touch with Regal Assets to receive your free cryptocurrency investment kit.
You can also check out this video on how to buy crypto below: