In this article the author aims to explain what cryptocurrencies are and how you can easily start investing in up-and-coming cryptos such as Fantom (FTM) or Seesaw Protocol (SSW). The article also explains how to invest in Cryptocurrency if you are a beginner.
Cryptocurrencies have become a great way to invest money and beat inflation. The cryptocurrency market reached a height of $3 trillion last year and financial giants like JP Morgan and Deliotte have invested huge sums of money in cryptos like Bitcoin (BTC) and Avalanche (AVAX).
However, for those who are new to cryptos investing can seem daunting and highly technical.
Cryptocurrency is a form of electronic money. This form of currency makes use of blockchain technology, which is considered secure due to its ability to establish distributed consensus amongst parties. Cryptocurrency blockchains are similar to traditional bookkeepers’ ledgers, except that the ledger is electronic and anyone who has access to it can also act as the bookkeeper.
Investors from all over the world have invested in cryptocurrency and are continuing to do so. While Bitcoin (BTC) is undoubtedly the most well-known digital currency, thousands of others already exist.
Investing in cryptocurrency can take a variety of forms, from purchasing cryptocurrency directly to investing in cryptocurrency funds and companies.
Because cryptocurrency investing is risky, it’s critical not to invest more money than you can afford to lose.
How to Invest in Cryptocurrencies
If you want to invest directly in cryptocurrency, you can do so through a digital wallet and using an exchange.
An example of a cryptocurrency wallet is Trust Wallet, which can be used to turn fiat currency, such as USD, into cryptocurrency. The first step would be to set up a TrustWallet account on your phone or computer using the app or website. Once your account is set up you can select to buy a cryptocurrency such as BNB (Binance Coin) using your credit/debit card.
Once the transaction is complete (which may take a few minutes to process), you will now officially be a cryptocurrency owner, and the BNB amount you purchased will appear in your Trust Wallet.
But this is only the beginning. Now that you have BNB you can use this cryptocurrency on an exchange like PancakeSwap. Exchanges are a place where many different cryptocurrencies can be exchanged for one another. For example, you could exchange BNB for EverGrow (EGC) on PancakeSwap.
You can invest in a single cryptocurrency or a portfolio of cryptocurrencies. Conduct research to assist you in making a decision.
What You Should Know Before Making a Cryptocurrency Investment
Investing in cryptocurrency is regarded as a high-risk endeavour. Cryptocurrency prices, even the most established ones, are significantly more volatile than the prices of other assets such as stocks. Cryptocurrency prices may also be affected in the future by regulatory changes as the cryptocurrency market is still widely unregulated in most countries.
Despite this, many investors are attracted to the potential upside of investing in cryptocurrency. If you decide to invest in cryptocurrency, it is critical to conduct thorough research on any digital coin prior to purchasing it.
When purchasing cryptocurrency, keep an eye on transaction fees, as they can vary significantly between currencies. At the moment, Bitcoin (BTC) and Ethereum (ETH) have the highest transaction fees because their technology is somewhat outdated, and their blockchains have become congested as their popularity has increased.
New cryptocurrencies such as Solana (SOL), Fantom (FTM) and Seesaw Protocol (SSW) have much lower fees and transaction times, hence their recent popularity.
Picking the Right Crypto
Because the cryptocurrency space is rapidly evolving, it’s also critical to keep an eye on new developments that may affect your crypto holdings.
One method may be to go for proven and established cryptocurrencies such as Bitcoin and Ethereum. Although these cryptocurrencies do swing wildly, they are the two leading cryptocurrencies by market cap, accounting for more than half of the entire cryptocurrency market. However, as previously mentioned, their fees are very high and transaction times very slow.
Another strategy may be to invest in new and slightly riskier cryptocurrencies such as Fantom (FTM) or Seesaw Protocol (SSW). These new cryptocurrencies provide a chance for much greater return than established cryptocurrencies as they are still growing. History has repeatedly shown how new cryptocurrencies can surge by huge percentages. Solana (SOL), for example, rocketed over 40,000% last year alone.
Seesaw Protocol (SSW) is a new cryptocurrency that has just embarked on its presale period. Once again history has shown how getting into a cryptocurrency very early and before its initial coin offering can reap huge rewards, although it carries a higher risk.
Given the inherent risk of cryptocurrency as an asset class, it is critical not to invest more money in crypto than you can afford to lose.
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