Cryptocurrency is a very high-risk market, and you should not invest more than what you’re willing to lose, so this market is very volatile, it is not uncommon to see 20 to 40 % swings every single day, so if you’re on the right side of the trade, it’s pretty easy to know that you can make some quick profits however if you’re on the wrong side then you can lose a lot of money very quickly. There are pretty much two ways they could go about doing this; you could be an investor, or you could be a trader.
Investor v/s Trader
If you choose to be an investor that typically means that you would purchase some cryptocurrency and hold on to it, basically you could be holding on to it for a few months or even a few years and hoping that that value of that cryptocurrency will appreciate. If you choose to be a trader you would typically focus on short-term profit meaning you would purchase a cryptocurrency and utilize the volatility of the market to sell in and out of trades, it goes down to the buy low sell high now you’re probably going to be a mixture of both. This market pretty much revolves around Bitcoin, if you’re not familiar with Bitcoin, you have to read up a bit, and that should give you a head start.
How to buy Bitcoin
There are a few different ways that you can go about doing that, but the way that is to recommend to people new to this market is to go through Coinbase. Coinbase has been around for a very long time, and they’re pretty much the most reliable and trusted source to get Bitcoin. All you have to do is go onto coinbase.com and sign up for an account now you will have to go through a verification process where you verify your identity so don’t be alarmed if it’s asking you for personal information this is required by law once you’ve been verified and have linked up to your bank account and your credit card you can now go ahead and buy some cryptocurrency currently Coinbase offers Bitcoin, ETH as well as Litecoin. You can select how much bitcoins as you would like to purchase, in regards to the payment options if you choose to pay through your bank account the fees will be lower however it will take a few days before you receive your coins that’s why you should typically use a credit card as the form of payment however the fees will be higher.
Bitcoin will appreciate throughout the years however if you want to trade Bitcoin for other cryptocurrencies this is where you would need to transfer your Bitcoin on to an exchange you can imagine the exchange being like the stock market where you would have a brokerage account allowing you to purchase shares of companies. Still, in this case, you are buying coins which are a different exchange.