We hope you enjoyed YAP’s “Internet of Value” 2-part podcast episode on the fundamentals of cryptocurrency. Now that you’ve got a solid background on the topic, you may be interested to invest in cryptocurrency as a store of value. To help you get started, we’ve compiled 5 easy steps to invest in cryptocurrency:
5 EASY STEPS TO INVEST IN CRYPTOCURRENCY
Open a cryptocurrency exchange account
In order to purchase Bitcoin or any other cryptocurrency, you’ll first need to open an account at an accredited cryptocurrency exchange. The most popular cryptocurrency exchange in the USA is Coinbase.
Here are some other popular exchanges:
When you open up your account, you’ll likely need to verify your identity and directly fund your account with Dollars, Euros, or another fiat currency.
Set your budget
As with any investment, you’ll want to decide what proportion of your savings and income you will invest in cryptocurrency. Cryptocurrency is a volatile and high-risk market, so you’ll want to invest disposable income, or money you’re willing to lose. Remember, high-risk investments can lead to big rewards or big losses, so be sure to do your due diligence and research before investing.
Do your research
Now that you’ve decided on a budget, you’ll want to take a closer look at the cryptocurrencies available in your exchange. The easiest way to learn about the latest trends in cryptocurrency is by reviewing a cryptocurrency’s value over time. You can take a look at these trends at sites like https://Coinmarketcap.com and https://onchainfx.com.
You’ll also want to keep up with the latest news to see how current events can impact the future value of cryptocurrencies you want to invest in. Here a couple great sites to check out:
You may also want to look into a coin’s developer communities, and review the available white papers. In addition, most coins are created for a specific purpose or use, so choose a coin that has a use case you resonate with and believe people will find value in.
Lastly, consider following cryptocurrency influencers like Phillipp Nunn, who recently appeared on our “Internet of Value” episode or Andreas M. Antonopoulos, who is arguably the world’s most famous bitcoin and blockchain influencer. Check out other influencers here.
For a complete list of cryptocurrency valuation metrics, review this site: https://onchainfx.com/metrics
For security purposes, you’ll want to be able to safely store your cryptocurrency. There are online and offline ways to store cryptocurrency, each with their own advantages and disadvantages. And so, it’s up to you to decide what works best.
One of the most popular online wallets is the Coinbase Hot Wallet. One of the most popular offline wallets is Electrum.
Here are some factors to consider:
Buy (and hold)!
You’ve set your budget and conducted your research. Now it’s time to buy your cryptocurrency! Each exchange has a slightly different interface, but once you select the quantity of the cryptocurrency you would like to purchase, you can make the actual transaction on the exchange itself.
Remember, Bitcoin started at $0.39 and now it is [insert value at time of reading]. And so most people at the present time do not use cryptocurrency to buy items, but rather to invest as a store of value.
Disclaimer: This blog post is for informational purposes only. It should not be considered financial advice, conduct your own due diligence or consult a licensed financial advisor before making your investment decisions.