Easy guide to buying cryptocurrencies
Disclaimer: This article is being left short to prevent information overload for beginners
Cryptocurrencies have been nothing if not exciting for many investors. While with buying you'd convert your current currency; US Dollars, Engling Pounds, Euro and many more into cryptocurrencies. They have natural appeal: they have gone up a long way, and investors are lured by the apparently chunky returns on offer. Their volatility also offers lots of opportunities for those looking to trade on price movements. If you want to try your hand, here are the steps you need to take.
You can decide to own units of cryptocurrency. With a unit of cryptocurrency, you have to pay in full for the price of the asset.
1. Setup your account To buy cryptocurrency, you need to buy and sell via an exchange. This means you need to create an exchange account and store the cryptocurrency in your digital ‘wallet’.
If you simply want to trade cryptocurrency you just need a brokerage account, rather than accessing the underlying exchange directly. The broker will be exposed to the underlying market on your behalf. This is usually quicker and easier to set up.
2. Decide which currencies you want to buy You should be able to any cryptocurrencies – including bitcoin, bitcoin cash, Ethereum, Ripple XRP, Litecoin, Dogecoin, Safemoon – and new currencies are being added all the time. With so many around, it can be best to choose those that you know something about, and become an expert in their price movements, rather than taking a broad-brush approach.
3. Decide on your buying strategy You need to make sure you know and understand your market. The pricing of cryptocurrencies depends on a whole host of factors. In the past 12 months prices have been influenced by concerns over government regulation, media coverage of the sector and the fortunes of the US Dollar - as well as statements from influential business people or government ministers. The more people become involved in cryptocurrencies, the more influential these different factors will become.
Easy guide to buying cryptocurrencies
Disclaimer: This article is being left short to prevent information overload for beginners
While with buying you'd convert your money into cryptocurrencies, selling crypto is the exact opposite. You would get Dollars, Euros, Yens etc. in return for your digital assets. It's often referred to as cashing out, since you'd be getting cash and getting rid of your cryptocurrencies. If you currently have your cryptocurrency in your digital wallet you should be aware of the value of your cryptocurrency. You simply just click the sell button usually place next to your crypto wallet. Without a few minutes/hours your cash value is in your account.