Cryptocurrency is a buzzword that refers to encrypted digital currencies that use cryptography for security. These currencies use decentralized control (as opposed to a centralized electronic money/central bank system) and are traded between peers without middlemen like government banks or credit card companies. As such, it is more resistant to wild inflation and corrupt banks.
Is it a good investment?
No, it is not. The technology is complicated and many people are simply looking for a quick way to make money on bitcoin before it takes off. To that end, there are some very simple investment strategies you can follow that will help you achieve your goals without needing to spend countless hours of research.
This guide will take you through these steps so that in just a few short weeks you’ll be making money hand over fist.
Should I buy into cryptocurrency?
You may have seen Bitcoin, Ethereum and other cryptocurrencies all over mainstream media in recent months. And chances are that you’ve heard a ton of conflicting information about whether or not it’s actually worth investing.
You may have also noticed a sharp climb in both Bitcoin and Ethereum prices recently, which has made some people very rich (or at least richer).
If you’re wondering if you should buy into cryptocurrency yourself, we can help. Before we delve into how to invest in cryptocurrency (and where), let’s review what cryptocurrency is first.
The simplest definition of Bitcoin is that it’s a digital currency. It’s also known as cryptocurrency because it utilizes cryptography (hence, crypto) in order to secure transactions and control the creation of new units.
It runs on blockchain technology, a decentralized ledger that stores all of its information across a peer-to-peer network of computers. This means that no single person or entity controls it—not even its original developers.
How do I buy Bitcoin?
Buying cryptocurrency can be a daunting experience for newcomers. However, once you get started, it’s quite easy and much more cost-effective than traditional means of investing. While there are many ways to buy Bitcoin and other cryptocurrencies, we recommend Coinbase as a simple place to start buying digital currencies.
Where can I use my Bitcoins? (cryptocurrency)
After you buy Bitcoins, they’re stored in a digital wallet. This wallet can be installed on your computer or smartphone. Each different type of currency has its own mobile app for buying and selling goods (think Venmo or PayPal but for cryptocurrency).
Some apps even allow you to store multiple currencies in one app so that you can easily switch between them depending on where you are shopping. Mining Altcoins (Ethereum, Litecoin, etc.)
Mining altcoins is an excellent way to start making money with cryptocurrency. The catch? Depending on where you live, profits from mining can be either tax-free or lumped into your income taxes.
With a fluctuating market, it’s smart to research thoroughly and find out which coins have been most profitable for miners in your area. But don’t get too greedy!
Multi-Coin Wallet like Jaxx or Exodus
It’s important to have a place where you can store your cryptocurrencies that is independent of an exchange. The reason for doing so is because exchanges are very vulnerable to hacking and many times do not allow you full control over your private keys.
Exchanges are also notorious for closing accounts without warning or cause, making it difficult to retrieve one’s crypto money. If you want a good wallet I recommend either Jaxx or Exodus.
Recommendations on where to start
The top three coins right now are Bitcoin, Ethereum, and Litecoin. Download a crypto wallet here. If you want to buy any of these currencies, go here or here or check out your local bitcoin ATM. There are also tons of books on cryptocurrencies if you want to read more about it before getting involved—we recommend Digital Gold.