How To Invest In The Right Cryptocurrency

The 11 Best Cryptocurrencies To Buy

Going forward, I will describe each coin, its purpose, team, liquidity, price volatility, and other metrics.

In the end, you will have a solid understanding, so that you can decide for yourself which is the best crypto to buy in 2021.

I will start with popular, well-known cryptocurrencies. Ideal for beginners.

Then, I will move on to some more advanced coins.

These coins may generate more profits, but they require you to know a bit more about them.

Plus, they are likely more volatile than the first coins on my list.

If youve already invested in top cryptocurrencies offered on platforms like Coinbase and want to expand your portfolio, then the coins at the bottom of my list might be the best crypto to invest in.

What Do You Need To Invest In Cryptocurrency

While the idea of cryptocurrency can be daunting to beginner investors, the requirements to get started are minimal. If you want to learn how to invest in cryptocurrency, you only need:

Thats it! It is possible to purchase cryptocurrency through a stockbroker as well. In this case, most of your personal and financial information will be on file already. Now that you have what you need, lets start investing.

How Crypto Is Used

Crypto-assets were first developed as a digital form of currency, to be used as money. Some stores accept crypto as payment for goods and services, and some ATMs let you withdraw it as physical money. However, crypto is not legal tender in Australia and is not widely accepted as payment.

Crypto is more commonly used as a speculative, longer-term investment, as most people dont access their balance for everyday transactions.

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Follow The Market From Day To Day

After youve set your eyes on a certain cryptocurrency, its smart that you follow the market on a daily basis to see the current trends. Log into your account every morning before you go to school or work and check how much each currency has changed in value overnight. Then look at which currencies have dropped by more than half their original price.

Once you get the initial information, find out why they may have done this. If its because there was bad news about the company who developed that coin, then consider selling yours too if its low enough. See whether many other people are also following suit with what happened last night. You dont want to be left behind! On the flip side of things, check for updates on coins whose value has increased and try to find out the reason why.

This is a tedious process, but following the market from day to day can help you make better decisions when it comes time to invest in cryptocurrencies. Its important not to be impulsive with your choices always do your research! This will save you money down the line.

What Is A Paper Wallet

To keep it very simple, paper wallets are an offline cold storage method of saving cryptocurrency. It includes printing out your public and private keys in a piece of paper which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user. You do not need to worry about the well-being of a piece of hardware, nor do you have to worry about hackers or any piece of malware. You just need to take care of a piece of paper.

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Total Float And Maximum Supply

Just like with stocks, you have to take the float and maximum supply into account, when making long-term cryptocurrency investments.

One thing that makes Bitcoin such a valuable commodity is the fact that only 21 million coins will ever be created. Once its all mined, there will be no more supply and demand will determine price.

The supply of Ripple is also limited. However, the maximum number is 100 billion coins! That is one of the biggest reasons that price has stayed so low.

Ether on the other hand, will have an unlimited supply. The same amount of Ether will be produced every year. As time goes by, that amount will become a smaller percentage of the total outstanding supply of Ether.

But this ever-increasing supply should keep the price fairly low, especially in relation to a currency like Bitcoin.

These are the types of supply dynamics that you have to understand about each currency.

Understand What Youre Investing In

As you would for any investment, understand exactly what youre investing in. If youre buying stocks, its important to read the prospectus and analyze the companies thoroughly. Plan to do the same with any cryptocurrencies, since there are literally thousands of them, they all function differently and new ones are being created every day. You need to understand the investment case for each trade.

In the case of many cryptocurrencies, theyre backed by nothing at all, neither hard assets nor cash flow. Thats the case for Bitcoin, for example, where investors rely exclusively on someone paying more for the asset than they paid for it. In other words, unlike stock, where a company can grow its profits and drive returns for you that way, many crypto assets must rely on the market becoming more optimistic and bullish for you to profit.

Some of the most popular coins include Ethereum, Dogecoin, Cardano and XRP. Newcomer Internet Computer recently burst onto the scene, too. So before investing, understand the potential upside and downside. If your financial investment is not backed by an asset or cash flow, it could end up being worth nothing.

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Allocate Only A Small Percentage Of Your Portfolio To Cryptocurrencies

You’ll have to decide in advance how much of your portfolio you want to allocate to cryptocurrency. With recent advances, particularly in the price of Bitcoin, it can be difficult to make a rational decision. All investing is ruled by a combination of greed and fear, and it may be hard to keep the greed part under control given the advances cryptos have shown in recent years.

Up to this point, both the current uses and the future of cryptocurrencies are uncertain.

Place Your Cryptocurrency Order

Once there is money in your account, youre ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

When you decide on which cryptocurrency to purchase, you can enter its ticker symbolBitcoin, for instance is BTCand how many coins youd like to purchase. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that otherwise take thousands to own.

The symbols for the 10 biggest cryptocurrencies based on market capitalization* are as follows:

*Based on market capitalization as of June 28, 2021

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Choose A Platform To Buy Cryptocurrencies

One of the disadvantages of buying cryptocurrencies is that you can’t get them in all the usual financial places. Banks don’t offer them and neither do investment brokerage firms.

For the most part, you’ll be limited to buying, holding, and selling cryptocurrencies on dedicated cryptocurrency exchanges.

Some of the largest of these exchanges include:

eToro

Gemini

Further Reading: our Gemini Review.

Unifimoney

Further Reading: our Robinhood Review

Advertiser Disclosure

Wealthfront

If you want exposure to cryptocurrency without actually having to buy crypto, could be the answer. You can gain exposure through two distinct cryptocurrency funds: Grayscale Bitcoin Trust and Grayscale Ethereum Trust .

And of course, you still have access to a large selection of ETFs, such as those for specific industries like self-driving cars and cannabis. When combined with cryptocurrency opportunities, you have access to more investments than ever before. Visit our Wealthfront review for further reading.

You can think of these platforms as brokerage firms specifically designed for cryptocurrencies. Each offers trading in the most popular cryptos, and of course, you should expect to pay a fee for both buying and selling.

How To Get Into Cryptocurrency From Scratch

No one was born a professional into anything in this life. But you can become an expert at whatever you want to be provided you learn extensively in that area. Cryptocurrency experts werent born that way or just turned out that way in one day they learned.

Therefore, as a beginner, the first step to getting into cryptocurrency is to gather knowledge on the topic and how to invest in cryptocurrency. If you are reading this article, you are already on your way to achieving success in cryptocurrency education.

To do this the right way, you need to know how to buy and store your cryptocurrency well, factors that contribute to the market changes, and the risks involved in cryptocurrency trading.

Let us begin by defining cryptocurrencies.

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Create And Verify Your Account

Once youve picked your crypto broker or exchange, its time to create and verify your account.

Exchanges generally require strict identity verification processes. Youll need to submit a copy of your drivers license or passport, and you might be required to upload a selfie to verify that your appearance matches the documents you submit.

It might seem like a hassle, but these steps are essential to prevent fraud and hacking.

You may not be able to sell or buy cryptocurrency until you complete the verification process.

How To Buy Cryptocurrencies

To buy promising cryptocurrencies, you need to use a crypto exchange or trading platform. Here are the different steps you need to take to start your investments:

• Choose a crypto exchange platform or broker: you can find a summary table below of the main cryptocurrency exchange platforms.
• Create an account on the platform: once you choose a platform you will then have to create an online account. You will be required to send or upload some credentials to verify your identity and ensure the security of your account.
• Make a deposit of money: you can make a deposit via several online payment methods and from a secure environment. The deposited capital will be used for cryptocurrency transactions.
• Buy cryptocurrencies: finally, all you have to do is choose the cryptocurrencies you want to invest in and buy the quantity you want.

Compare the best cryptocurrency trading platforms online:

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Before You Invest In Crypto

Experts say its smart to keep your crypto investments under 5% of your overall portfolio. Crypto prices fluctuate wildly by the day, and experts also say youd be smart not to invest more than youd be OK losing if the market dropped out altogether. Crypto investments should also never get in the way of other financial priorities like saving for emergencies, paying off high-interest debt, and saving for retirement using more conventional investment strategies.

Major Companies Are Engaging With Cryptocurrency

Some of the biggest and most dominant companies globally are now engaging with cryptocurrency – which once again, proves beyond doubt that this industry is here to stay in the long run.

For example, Tesla – which is one of the largest companies globally with a market capitalization of over$1 trillion, invested $1.5 billion from its balance sheet in late 2020 into Bitcoin.

Then you have companies like Overstock, Paypal, Microsoft, and Starbucks – all of which allow you to spend Bitcoin on their respective products and services.

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Whats The Best Crypto Wallet

Many websites offer to give you a digital wallet for free, so the only thing you need to do is pick the one you like best and create an account.

Some of those wallets even help you to buy cryptocurrencies through them. Most trading apps and cryptocurrencies exchange websites allow you to link them to your digital wallets account, which means you only must do what the app or platform tells you to have the funds in your digital wallet.

Looking for the right crypto wallet on the market is not easy if you dont know where to look.

All wallets are meant to meet certain goals, so its critical to pick one that suits what your goals are. We want to help you in this journey as much as we can, so here are the best crypto wallets for you and what each one of them is best for:

• Coinbase Wallet -Best wallet for beginners
• Mycelium Wallet -Best wallet for mobile users
• Exodus Wallet -Best wallet for desktop users

Cryptocurrencies Smash Through Stock Market Gains

While cryptocurrencies are inherently risker than traditional stocks, the former continues to generate significantly higher gains.

For instance, over the prior five years, the S& P 500 has increased by 94%. Moreover, the NASDAQ Composite has returned 144% over the same period.

• In comparison, consider that over the past five years, Bitcoin has increased by more than 3,600%.
• Bitcoin isn’t the best-performing cryptocurrency though, as many other tokens in this marketplace have generated even higher growth levels.
• For example, Ethereum has increased in value by over 7,000% during the same period, while as noted earlier, BNB is up 10,000%.

When you look at some of the best Metaverse coins in the market – gains are even more impressive. For example, Decentraland and its MANA token have grown by over 25,000% since launch.

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Ripple Lawsuit: Settlement This Month

Experts have said that a Ripple Lawsuit settlement could happen this month. Heres why that matters to XRP holders.

We are rapidly approaching a key date in the Ripple Labs lawsuit.

According to legal experts, a settlement may be reached as soon as the end of April. The developers of XRP are widely thought to have the upper hand in a potential trial, which has led some to speculate that the SEC may be willing to settle.

Although no dates have been set in stone, there are several reasons to think that a settlement may be coming as soon as this month. In this article I will explore a few reasons why we might get a settlement soon, and what a potential settlement would mean for XRP holders.

What Kind Of Settlement Would We Be Looking At

In its filing, the SEC sought to have Ripple pay out US$1.3 billion plus interest that is, the proceeds from the XRP coin offering plus a bit more. If the two parties settle, then they will likely agree on an amount much smaller than that. Settlements usually involve some level of compromise by both sides.

Additionally, many experts think that Ripple is winning in the pre-trial hearings that are now ongoing. They often cite Ripples wins on depositions and witnesses as evidence that a trial would likely go its way. Given that Ripple has this leverage over the SEC, it would seem likely that the two parties would settle for a relatively small amount.

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How To Buy Cryptocurrency On A Decentralized Exchange

The question, what type of exchange to use depends on a number of factors. What is your risk tolerance? What are your investment goals and timelines? What is your investment or trading strategy? How important is security, privacy, or decentralization to you?

There are a lot of variables and trade-offs to consider, and no one-size fits all answer. One thing is for certain: crypto investing can be risky so do your own research, and do not make investments without strong conviction.

If you want to learn more about how to safely invest in CeFi and DeFi exchanges, our Crypto Investment School course has a comprehensive curriculum taught by crypto investors whove got real-world experience.

How Do You Start Investing In Crypto

Buying crypto has never been easier. You can purchase it on your smartphone or computer.

Youll need to set up an account with an online exchange or crypto broker to get started.

Youll also need to research the specific cryptocurrency you want to buy to make sure its a good fit for your investment portfolio and risk tolerance.

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What Makes Cryptocurrencies Different From Fiat Money

Fiat money money like the American or Canadian dollar is issued by the government, meaning theres a central authority that controls its value, interest rates, and supply . Many view this degree of government involvement in the mechanics of the free market as manipulation and as an archaic attempt to manage a vast and complex economic system. A noble intention at best, a catalyst of hyperinflation that makes wealth building very difficult for the average person, at worst.

Cryptocurrencies, on the other hand, are decentralized all transactions are done peer-to-peer or through smart contracts and theres no authority overseeing them. Many people consider this a massive advantage over traditional money, because it gives them full control of their assets.