There has been growing interest in online currency, or cryptocurrency, for some time. Millions of people all over the world have already taken advantage of Bitcoin, Ethereum and other digital money. But for those people uninitiated in using Blockchain technology, what does this all mean? Can anyone stand to make money from buying and selling digital currency?
Bitcoin, in particular, has seen its fair share of ups and downs in recent times. However, regardless of some bad press, interest in online currency hardly seems to be waning. There may not be a better time to get involved with digital trading, however, some people are still sceptical regarding the risks and returns of crypto. With that in mind, it is worth looking at some of the more encouraging trends in online trading.
Cryptocurrency is largely anonymous
One of the huge benefits of investing in online currency is anonymity. While stocks, shares and other assets are out in the public eye, cryptocurrency is much more private. Being able to trade in anonymous stock is very appealing to a lot of people. It is completely digital, too, which gives you a further level of protection physical money avoids.
You can, however, also store currency in a 'paper wallet', which is an offline method of storing your investments. For additional security, this is a good step to take.
Cryptocurrency is flexible
If you're flexible as far as investing is concerned, you can buy cryptocurrency privately, or you can use exchanges. More and more exchanges are setting up shop online. However, navigating and taking the time to understand online currency exchanges may be more demanding than many individuals expect.
That is why many people choose to use bots to buy and sell on their behalf. While asking a service to invest for you might seem tricky on the surface, it has become a quick and easy way to start building a portfolio; many investors use comparison sites such as Top10CryptoBots to start automating their investments.
Whether you are taking advantage of online trading robots, or continuing to read the markets on your own terms, ensure you fully research your options, to find the best one that works for you.
There’s more to crypto than Bitcoin
A common misconception is that all cryptocurrency is Bitcoin, and vice versa. This is far from being the case. More and more currencies are emerging through Blockchain mining, meaning that a wealth of choice is driving people to dive into trading.
Litecoin, ERC20, Ethereum and Dogecoin are just a few of the alternative online currencies currently being mined. Traders can use digital wallets to store their currency for future spending, too. These wallets are great for a variety of coin, meaning flexibility, again, is a huge benefit.
Isn’t cryptocurrency volatile?
One of the most-publicised problems people have experienced with cryptocurrency is that it is famously volatile. This means that, due to the nature of the product, online currency is likely to spike and drop in value multiple times in a short period: it can be tricky to balance. You may be investing in Bitcoin at a peak in one moment while facing selling in a dip at the next.
This complexity hasn’t put people off trading, in fact, many people see the volatility in a positive light. While it does mean that trading in some currencies carries a high risk, there is the genuine thrill of being able to sell when you hit a short-term spike.
Ultimately, trading in crypto can be considered high risk. That is why it is crucial to buy low, at least to begin with, so that you can get used to how the markets work.
How to get started with cryptocurrency
Getting started in online currency is as easy as finding a reputable exchange. Once you have set up your digital wallet, you can use these platforms to find various types of currency available for sale. You will either be able to keep your chosen currency in your wallet or float it on the exchange.
Researching Bitcoin and other currencies, meanwhile, isn’t as complicated as it seems. There are many tutorials and forums online which discuss what to look for in the markets. You can also get free tips and advice from communities such as Reddit. There isn't such a thing as a 'paid club' when it comes to cryptocurrency exchange.
Is now the best time to invest in online currency? It seems that interest is far from waning, which is only a good sign. Take your time reading up on the basics, and start exploring a few exchanges at your leisure.