We’ve all witnessed the rollercoaster ride of Bitcoin in the past few years and at around $38,000, the number one digital currency is riding the wave. If you acquired 100 Bitcoins way back in 2014 and forgot about them, you would certainly be sitting on a nice chunk of change today, and when Elon Musk buys $1.5b, you know things are on the way up. If you have finally decided to get into cryptocurrency to diversify your portfolio, here are a few tips.
- Do your homework – In the words of Warren Buffet, ‘never invest in something you don’t understand’, which means you need to start at the bottom and work your way up to the point where you have a good understanding of how the crypto markets work. There are certain aspects of digital currency that are different from fiat currency; the currency is not controlled by banks or governments, rather it is managed with an ‘open ledger’ system that is decentralised.
- Understanding Blockchain – This is the infrastructure that powers all digital currencies and it is critical that you fully understand how blockchain technology works. A simple explanation is that every block of data is interconnected with the previous block and the only way to buy or sell cryptocurrency is to add another block to the chain. Some experts say blockchain in unhackable, although there have been a few hacks over the years, which were quickly plugged.
- Pooling with Experienced Crypto Investors – Some investors would hire a digital marketing agency to run a PPC campaign that is aimed at experienced crypto traders and allow them to take a commission on the profits they make for you.
- Bitcoin – The undisputed king of cryptocurrencies, Bitcoin was the brainchild of Satoshi Nakamoto, a person cloaked in mystery; Even to this day, this person is unknown, remaining anonymous, communicating only on a crypto forum. Some experts believe Satoshi is a group of people, others think he should be awarded the Nobel Prize for Economics and if you know who he (or she) is, you could make a fortune. You have many hours of research ahead of you, just on Bitcoin alone, not to mention the other digital currencies (Altcoins) and armed with this knowledge, you can begin trading Bitcoin. Click here for tips to reduce your spending, which will give you more to invest.
- Use a Crypto Broker – If you join forces with a leading broker, you have access to their state-of-the-art analysis software, plus the best markets (exchanges). It is important to diversify your wealth and to start with, keep your investment low, at least until you gain some hands-on experience trading cryptocurrency.
We are definitely moving towards a cashless society and Bitcoin is looking like the future in terms of a global digital currency, and let’s not forget that Bitcoin is more than just a cryptocurrency, it is also a payment system that is anonymous.
Providing you do the research and become knowledgeable about cryptocurrency and how the exchanges work, there’s no reason why you can’t generate more wealth by trading crypto.