Cryptocurrency has been showing immense scope ever since its first form of it, Bitcoin, was introduced in 2009. Bitcoin was presented at a value of nothing and now stands at a whopping USD 20,341.80. It has not only shown exponential digital money growth previously but is also expected to grow significantly in the coming years.
However, there are still plenty of sceptical investors who are not sure whether cryptocurrency is worth their time and investment. Some people, who have, after careful consideration, chosen to invest in crypto, don’t know where to start.
While some may just choose to do extensive research and embark on this journey themselves, some choose to do so through a third-party app, such as Bitcoin Circuit.
What is cryptocurrency?
Cryptocurrencies are digital currencies that function on a public ledger system, popularly known asblockchain technology. Every time a new transaction gets processed, a new block gets added.
To get started with crypto, you will need to collect your identification documents, bank account information and a stable internet connection.
After this, you just need to register with a valid crypto exchange if you wish to take that route when trading. Then, get a bitcoin wallet, for which you may choose to have a hot or cold wallet, and link it to your bank account or other payment methods. Now, all that is left to do is start trading and manage your investments as you analyse the turnovers.
How much is cryptocurrency worth?
Although the first cryptocurrency, Bitcoin, took the world by storm, there have been several close competitors to it since then. At present, there are over 16,000 cryptocurrencies in the market, according to sources.
All these cryptos have different values. However, the original crypto, Bitcoin, has a market capitalization of $900 billion, which makes it the largest cryptocurrency in the market at present.
Ethereum, also known to bethe second largest cryptocurrency hasa market capitalization less than $500 billion.
Although the total market cap of all cryptos cannot be calculated accurately, no data can be presented as proof. However, some do predict that the total size of all the cryptocurrencies in the market may total up to a surprising $3 trillion.
Are cryptocurrencies an intelligent investment?
Cryptocurrencies are popular because they are a thing of the future. It has often been predicted that all exchanges will be made through cryptos several decades down the future. As the popularity and customer base of cryptos just continue to grow, this prediction is more on its way to becoming a reality than ever.
Cryptocurrencies are extremely efficient in the sense that they are available to use for global exchange on all days of the week at all times. Most importantly, the cryptocurrency transactions are well-known for utmost security and privacy.
The question of whether it is a good investment or not depends on what your intention is with the investment. Most investors will choose to keep their holdings for a limited period, collect certain profits, and cash out their digital assets, usually by selling them off.
However, it is essential to keep in mind that cryptocurrencies are greatly volatile assets, and their value does not follow any set pattern. Thus, you must make informed decisions when planning to invest in such currencies.
How does one buy cryptocurrency?
Cryptocurrency can be purchased through several different methods. However, the simplest and most popular way of going about this is by going through a broker or an exchange.
The individual looking to purchase cryptocurrency must have a valid account, the necessary personal identification documents and bank account information. After these technical formalities are over, you can place your order and start trading.
Although crypto transactions are generally safe, the laws and regulations surrounding this digital currency are still evolving. Therefore, it is always best to stay cautious when dealing with crypto.
Although it has been over a decade since cryptocurrency came into existence, there is still very limited information surrounding this new marketplace. Thus, it is especially difficult for new investors to understand. While most people take advantage of exchanges and brokers available online, many choose to be more independent. Whatever the case might be, always remember that crypto is an extremely volatile business. Finally, you should only invest as much you can afford to lose.