Bitcoin and other cryptocurrencies have grown over the past few years from something that only a select few people were interested in into household names. An increasing number of people around the world are now investing in Bitcoin and other cryptocurrencies such as Ethereum. Bitcoin is the first cryptocurrency on the scene and has been around since 2009, when it was worth less than $1 per coin, compared to today’s worth of tens of thousands of dollars per coin after a lot of investment.
Bitcoin and other cryptocurrencies are showing no sign of slowing down and are only expected to become more popular over time. Since they are quite easy to invest in, with lots of accessible options for investors available, it’s no surprise that investing in crypto is on a lot of to-do lists. So, what do you need to know to get started?
How to Purchase Cryptocurrency
To get started with buying cryptocurrency, the best option is to sign up for a cryptocurrency exchange such as OKX. Choosing the right cryptocurrency exchange is important as there are several different options available today, some of which might be better for one type of investor than another. For example, if you are new to the world of investing in crypto then you may want to consider an exchange that is user-friendly and easy to follow, allowing you to learn as you go along. On the other hand, if you know a bit about crypto or have invested in it before, then a more advanced exchange with advanced investing and trading features might be a more ideal option for you.
Options for Paying for Crypto
When it comes to buying crypto, you’ll find that most exchanges allow you to purchase it using most common fiat currencies such as US dollars or British pounds. There are also exchanges that are crypto-to-crypto exchanges, so if you already own some cryptocurrencies, you can trade these for others. A fiat-to-crypto exchange is the best choice for those who are new to buying cryptocurrencies. You will usually need to deposit some money into the exchange first using your debit or credit card, and then use it to purchase the desired amount of the cryptocurrency that you want to invest in.
Getting a Crypto Wallet
Regardless of the crypto coin that you decide to buy, or how much you want to invest, it’s crucial to ensure that you are storing your coins securely. Most exchanges will allow you to store your crypto on the exchange, but this is not always a good idea for several reasons. While the coins you’ve purchased are yours, keeping them stored on the exchange means that you don’t completely own them. Along with this, you could be putting them at a higher risk of hacks and cybercrime. A separate crypto wallet that you can transfer your coins into and store them is the best option. Setting up a wallet is easier than ever these days, and there are several options to choose from including hardware- and software-based wallets.
Why Invest in Cryptocurrencies?
Now you know the basics of getting started with investing in cryptocurrencies, it’s time to consider if going ahead with it is the right option for you. There are lots of reasons why people are investing in cryptocurrencies more and more, but these are some of the top ones:
Cryptocurrencies have become open and available to just about anybody over time. Compared to back in 2009 when you had to program your own wallet to invest, and therefore had to be a bit of a tech geek to get anywhere with it, these days, anybody with a smartphone can download a crypto exchange app and start investing.
Low Starting Costs
Compared to some other investment types, cryptocurrency investments can have quite a low-cost outlay. Despite the fact that Bitcoin and many other popular crypto coins like Ethereum are worth thousands of dollars per coin, you don’t have to begin with purchasing one coin. If you wish, you can spend as little as ten dollars on a fraction of a Bitcoin that will grow in value along with the value of one coin.
Many investors today are looking for a flexible option when it comes to the investments that they make, and cryptocurrency is the ideal choice. Bitcoin and other crypto coins are highly liquid, allowing you to easily make transactions and forego the need to wait around for the demand to match your offer. Along with this, you can be more flexible with trading times compared to options such as the stock market, for example, as the cryptocurrency market is open around the clock.
The fact that you can remain completely anonymous when making transactions is a big part of the appeal of cryptocurrency. It means that in comparison with other investment options, cryptocurrency is a highly secure option that is worth considering. Today, we live in a world where data breaches and the theft of consumer data is only becoming more and more commonplace. And as the world becomes more reliant on cashless transactions and online payments, it’s only set to happen more. With crypto, blockchain technology, rather than human IT professionals, keeps your financial information secure.
Although using your cryptocurrencies to pay for the goods and services that you buy has not yet become as mainstream as other options like paying with a debit or credit card, there is a growing number of companies around the world today that are allowing customers to use cryptocurrencies such as Bitcoin to make payments when buying something. In some countries, you can use Bitcoin to pay your bills. As Bitcoin and other cryptocurrencies only become more and more popular, it’s likely that crypto payment options are soon going to be just as normal as Mastercard and Visa.
If you are looking for a new investment option, then Bitcoin and other cryptocurrencies are flexible, accessible, secure, and only set to become more popular and valuable in the future.