Investing in Bitcoin, Ethereum, and other Cryptos
Crypto-currencies have been all over the news lately and if you knew about this a few years ago you probably made a lot of money. Needless to say, this new technology/currency doesn’t seem to be disappearing anytime soon. Before you get started it is important to have some background information regarding cyrpto-currency investments.
The three most popular cryptos are Bitcoin, Ethereum, and Litecoin. There are also thousands of smaller less popular coins that trade on exchanges as well. Initial Coin Offerings (ICO’s) are becoming more and more popular, and new coins are coming out regularly. This is a new and exciting time to get started.
Now we will not go into too much detail regarding the technology behind these currencies, rather this will outline how to begin your investment journey. If you want to learn more about arbitrage or other trading styles feel free to explore the other pages on this site.
Bitcoin, Ethereum, and Litecoin are the three most popular crypto-currency coins that are trading. This is important to know because these crypto-currencies are carried by most wallets and exchanges. The first thing you need to do is to get a trustworthy wallet established. This is the easiest way to convert native fiat currency into crypto-currency. Trustworthy wallets will verify your identity, and are held to some financial standards by the government. This helps to ensure your money is safe, but also to protect against money laundering ect. Coinbase is the most popular wallet/exchange right now and it is very easy to use. This is a great place to get comfortable investing in Bitcoin, Ethereum, and Litecoin and others.
This is an ever changing investment environment and it is mandatory to stay on top of your money. Keep up with the news, and follow the momentum. This might help you find other opportunities in other coins as well. Continue to research the underlying technology and allow this to help guide your crypto-currency investments. Sites likes Coinmarketcap.com make it easy to follow trends and track your current investments.
Step 3: Exchange Trading
Now that you have done all of your research and you have your first wallet/exchange set up (most people start with Coinbase), it is time for the final step. Getting on a full exchange opens up many new doors. If you want to speculate in micro currencies or if you want to trade actively this is a necessary step. You can also learn more about arbitrage trading which is common between many exchanges. There are many exchanges out there, and depending on what your looking for some might be a better fit than others. Once you have your first wallet set up you can use an exchange like Exmo. This is an international exchange which offers liquidity and great tools. Another popular exchange is Changelly. They make is extremely easy to convert cryptocurrency. CEX.IO is another extremely trusted exchange, and it can be used worldwide. Like Coinbase, they are extremely easy to use and you have access to the entire crypto market. You can fund from your bank account or credit card as well. Take a look at a few different exchanges before making your final decision, but CEX.IO come highly recommended by many. For a full review of CEX.IO including pricing, customer support, saftey, and a full summary, read our blog posting here.