You already heard a lot of buzz about cryptocurrency but you continue to ignore it because you are not aware of the technology behind it and how it can help make more money. It is time that you consider buying cryptocurrency but before that, you should know things about it.
What is blockchain?
The technology behind crypto is blockchain. The blockchain is considered a secure database by design. Satoshi Nakamoto introduced it in 2008 but it was implemented in 2009. The blockchain basically serves as a public ledger. By using blockchain technology, there is no intermediary or third party needed. This makes the technology decentralised. On top of that, blockchain is secure because of cryptography – a technology that will not allow for any changes or alterations of transactions. The transactions made are authenticated and free from errors.
You have to know that there is no better time to buy cryptocurrency than now because the market cap skyrocketed. With its publicity, many people are interested in investing now. However, before you start investing, you need to consider the following tips:
Invest in what you can afford to lose
The most important rule here is to only invest in what you can afford to lose. You have to keep in mind that investments are never a sure thing. This is especially true in the crypto market. Remember that the coins are very volatile and can go to zero in a blink of an eye.
The amount you want to invest will depend on how much you have and your risk tolerance. However, for beginners, you should start conservatively – maybe 10% of your total money. As you become familiar, you can increase the percentage if you deem necessary.
Do your research
In anything, you need to do your research. You have to be aware that there are many crypto coin or tokens you can consider. This will make investing a tough decision. However, you can effectively weed it and identify the bad ones from the good ones. This is only possible with the help of research. You should utilise the post of people online to get the gist of the crypto market. Always invest in something that you believe will succeed.
Register and set up your wallet
As soon as you identified a good crypto investment, the next thing that you should do is to register and set up your wallet. Your wallet is where you will store your coins while the exchange platform is the place where you will buy, sell and trade your coins. The good news is that there are many exchanges and wallets that you can choose from. If you want your coins to be safe, you should keep a physical wallet.
When it comes to investing in crypto, you should think long-term. The blockchain technology is young. This means that you should expect growth in the coming years. You are now capable to make your own currency and create smart contracts with the help of blockchain guides.