How To Invest On Cryptocurrency

What Can You Buy With Cryptocurrency

When it was first launched, Bitcoin was intended to be a medium for daily transactions, making it possible to buy everything from a cup of coffee to a computer or even big-ticket items like real estate. That hasnt quite materialized and, while the number of institutions accepting cryptocurrencies is growing, large transactions involving it are rare. Even so, it is possible to buy a wide variety of products from e-commerce websites using crypto. Here are some examples:

Technology and e-commerce sites:

Several companies that sell tech products accept crypto on their websites, such as newegg.com, AT& T, and Microsoft. Overstock, an e-commerce platform, was among the first sites to accept Bitcoin. Shopify, Rakuten, and Home Depot also accept it.

Luxury goods:

Some luxury retailers accept crypto as a form of payment. For example, online luxury retailer Bitdials offers Rolex, Patek Philippe, and other high-end watches in return for Bitcoin.

Cars:

Some car dealers from mass-market brands to high-end luxury dealers already accept cryptocurrency as payment.

Insurance:

In April 2021, Swiss insurer AXA announced that it had begun accepting Bitcoin as a mode of payment for all its lines of insurance except life insurance . Premier Shield Insurance, which sells home and auto insurance policies in the US, also accepts Bitcoin for premium payments.

Why Invest In Fan Tokens The Future Of Socios Fan Tokens & Similar Crypto Coins

The world has started to demand cryptos with a better use case, and Fan Tokens meet the requirement. Their purpose is to allow holders to interact directly with the team like they never could before. It helps establish a relationship between teams and the fans within a decentralized space allowing holders to become passive participants in their favorite sports.

With Fan Tokens, fans not only gain rewards but have a voice when it comes to making decisions about their teams. So far, their choices are passive limited to the winning music, the message on the sports jerseys or armbands, and the paintings on the dressing room walls. However, as fan tokens become the norm which can happen soon considering the price action experts believe that fans will have a larger say in how the team is arranged when the players are on the field.

Socios fan tokens have seen many upticks after Bitcoin hit the bear bottom of 2022, meaning that these tokens have the power to tap into real-life use cases and make crypto assets more valuable. And since more such use cases will emerge, we will see massive growth in the prices of these cryptos.

Business2Community recently interviewed the CEO of Bitstamp, who had bullish predictions for cryptos that form a community such as fan tokens and meme coins.

What Cryptocurrency Should I Invest In

If you’re a beginner and searching for the best crypto to invest in, then perhaps it might be wise to stick with established projects like Bitcoin, Ethereum, and XRP. However, there are thousands of other cryptocurrencies to choose from – so you should ensure that you conduct your own independent research.

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How To Store Your Cryptocurrency

When we say send it to your wallet, we dont mean you put your Bitcoin into an actual wallet. To store your currency, you need a cryptocurrency wallet, which is necessary to securely store the code that makes up your cryptocurrency portfolio. You can have either a software wallet or a hardware wallet. Software wallets are necessary to enable active trading, as they make accessing your currency much easier. If you sign up for a Coinbase account, you automatically receive a Coinbase software wallet.

Hardware wallets are physical devices they look a bit like USB drives and they are more secure than software ones. You can use them for currency that you dont expect needing frequent or easy access to. Think of a software wallet like a checking account, whereas the hardware wallet is more like your savings account.

Buying Bitcoinwithout Owning Btc

While some years ago it was a very challenging process to buy cryptocurrencies, today there are a range of options, some easier, some more difficult each with different degrees of exposure to Bitcoin as an asset.

Buying Bitcoin on any CeFi exchanges discussed above is obviously the most direct way, but if the risk is beyond your tolerance, there are other ways to get exposure to cryptoassets with less direct exposure.

Today you can now get indirect exposure to bitcoin by investing in publicly traded cryptoassets like Greyscale Investments, a large digital currency asset manager with approximately $46B assets under management .

The first crypto ETFs are also starting to become available with Galaxy Bitcoin and Ethereum ETFs and Purpose Bitcoin ETFs in the Canadian market.

You can buy shares of stock of publicly traded companies that have significant exposure to bitcoin on their balance sheet like Tesla , Square , and notably Microstrategy , which as of June 2021 has 91,326 bitcoins on its balance sheet, which it bought for $2.21 billion, or an average $24,214 per bitcoin.

Finally, you can choose to invest in publicly traded bitcoin mining companies like Riot and Hive. These companies generate profit by mining and issuing new Bitcoin to the blockchain.

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Do You Need A Paper Wallet

The answer to this question will largely depend on your circumstances. If you plan to spend the summer day cryptocurrency trading a few coins, perhaps you dont. Alternatively, if youre in for the long haul, and dont intend to touch any portion of your stash, then a paper wallet is the most secure option available to you. The paper wallets that you can use are as follows:

• For Bitcoin, Litecoin, Dogecoin etc. you can use Wallet Generator.
• For Ethereum and ERC20 tokens you can use My Ethereum Wallet.

How Much Money Do I Need To Start Investing In Cryptocurrency

In theory it takes only a few dollars to invest in cryptocurrency. Most crypto exchanges, for example, have a minimum trade that might be $5 or $10. Other crypto trading apps might have a minimum thats even lower.

However, its important to understand that some trading platforms will take a huge chunk of your investment as a fee if youre trading small amounts of cryptocurrency. So its important to look for a broker or exchange that minimizes your fees. In fact, many so-called free brokers embed fees called spread mark-ups in the price you pay for your cryptocurrency.

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Make Your First Transaction

When your account is funded and youve researched which cryptocurrency you want to buy first, its time to initiate a transaction and buy your first cryptocurrency. This is typically a straightforward process. If youve ever purchased a stock using a major brokerage website or mobile app, you will likely have a familiar experience.

Hybrid Exchanges Or Hex

Hybrid exchanges have the best features of both decentralized and centralized exchanges. A hybrid crypto exchange is still in a developemental phase. It has the liquidity feature just like the centralized platforms and maintains the anonymity and security, like the decentralized exchanges. One of the most notable features while transacting through HEX trading is that, there are no taker fees and gas fees involved here.

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How To Buy Cryptocurrency

You may be wondering how to buy cryptocurrency safely. There are typically three steps involved. These are:

Step 1: Choosing a platform

The first step is deciding which platform to use. Generally, you can choose between a traditional broker or dedicated cryptocurrency exchange:

• Traditional brokers. These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features.
• Cryptocurrency exchanges. There are many cryptocurrency exchanges to choose from, each offering different cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.

When comparing different platforms, consider which cryptocurrencies are on offer, what fees they charge, their security features, storage and withdrawal options, and any educational resources.

Step 2: Funding your account

Once you have chosen your platform, the next step is to fund your account so you can begin trading. Most crypto exchanges allow users to purchase crypto using fiat currencies such as the US Dollar, the British Pound, or the Euro using their debit or credit cards although this varies by platform.

Some platforms will also accept ACH transfers and wire transfers. The accepted payment methods and time taken for deposits or withdrawals differ per platform. Equally, the time taken for deposits to clear varies by payment method.

What Are The Risks Of Investing In Cryptocurrency

It is all good and well to focus on the many benefits that you can take advantage of when you invest in cryptocurrency.

However, seasoned traders will always consider the risks of an asset class before proceeding with an investment.

And as such, in the bullet points outlined below, we take a closer look at some of the main risks to consider when you invest in cryptocurrency.

• Speculative: Many investments in the cryptocurrency markets are highly speculative. This means that the overarching focus is on short-term price increases as opposed to long-term value.
• Volatile: A direct result of the speculative nature of cryptocurrencies is that this marketplace can be extremely volatile. Moreover, the smaller the market capitalization that a cryptocurrency has, the more volatile it becomes.
• Rug Pulls: The term ‘rug pull’ refers to a cryptocurrency project that was created with the sole intention of scamming investors. A recent example of this was Squid Coin, which resulted in investors losing millions of dollars.
• Hacks: Another risk to consider before you invest in cryptocurrency is that hackers will often favor this asset class. The biggest threat in this respect is if your wallet is remotely hacked – your entire balance can be stolen in a matter of seconds.

Moreover, to ensure your cryptocurrency tokens remain secure – consider using a heavily regulated broker like eToro.

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Best Fan Tokens To Invest In

Our top list includes some new crypto assets at a low price point related to fantasy sports and gaming, current Socios fan tokens, and the native coin of the Socios fan token ecosystem:

• Paris Saint-Germain Fan Token
• Alpine F1 Team Fan Token
• S.S. Lazio Fan Token
• Santos FC Fan Token
• FC Porto Fan Token
• AS Roma Fan Token
• Atletico De Madrid Fan Token
• Inter Milan Fan Token
• Manchester City Fan Token
• FC Barcelona Fan Token

Earn Yield On Your Eth Through Lending

• Pro: Passively grow your investment through lending and earn regular yield payments.

• Cons: Staking returns on ETH are not as lucrative as other tokens, and 32 ETH is required to become a full validator.

Investing is just as much about growing capital you already have, as it is about acquiring new assets. You can earn a yield on any ETH you already own through a number of methods, such as lending, staking and DeFi. The easiest method, which can be done through an exchange, is via lending, also known as crypto savings accounts.

These accounts allow you to deposit your ETH coins in return for an annual percentage yield which is paid out as additional ETH. Returns are generated by lending out your ETH to other users who pay interest on the loan, which is paid out to you as yield. Borrowers must deposit capital in order to take out a loan, which is used to protect your funds in the event of the borrower defaulting on the loan.

Returns of around 4% APY are common, although this number could rise as high as 15% once the Ethereum network upgrades to a proof-of-stake network, thus increasing the networks reliance on ETH coins.

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Is Cryptocurrency A Good Investment

Investing in cryptocurrency is not for everyone. The prices of cryptocurrencies can be volatile, which makes this type of investing likely a poor choice for conservative investors. If you are willing to assume greater risk as an investor, then investing in one or more cryptocurrencies may be right for you.

Brief Intro To Cryptocurrency

If this is your first time investing in cryptocurrency, its helpful to understand the basics. Otherwise, you could end up making uninformed decisions that lead to bad investments.

Lets get started with a brief refresher on crypto and answer some commonly asked questions.

· What is cryptocurrency?

Cryptocurrency is essentially digital money. However, its different from other digital payment systems, like credit cards, because crypto doesnt require banks to manage and approve transactions.

Instead, all cryptocurrency transactions are recorded on a distributed digital ledger called the blockchain. This technology makes crypto transactions highly secure, transparent, and immutable. That means no one can change the data on the blockchain not even a bank or government.

Cryptocurrencies like Bitcoin are used to store value and pay for goods and services online. But crypto has expanded beyond digital payments as well. Platforms such as Ethereum and Cardano are launching pads for thousands of that support everything from decentralized banking to gaming platforms and NFT marketplaces.

· Why invest in cryptocurrency? What makes it a good investment?

Do you believe in a decentralized financial system that gives users control over their own funds? If so, investing in cryptocurrency is an excellent way to contribute to that goal.

· How much money do I need to start investing?

· Whats the difference between investing and trading?

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Choose A Cryptocurrency To Invest In

Perhaps the most challenging part of the process when thinking about how to invest in cryptocurrency is knowing which digital asset to buy. As we noted earlier, there are thousands of cryptocurrencies active in the market, so the research process can be challenging.

A good starting point is to focus on established digital tokens that have a solid market capitalization. Although still volatile, these digital assets will be a lot less speculative than small-cap projects with a minute valuation.

For example, it goes without saying that Bitcoin is by far the most established and recognized cryptocurrency. The digital asset has since surpassed a total market capitalization of over $1 trillion, making it more valuable than blue-chip stocks that have dominated their respective sectors for many decades.

You then have solid cryptocurrency projects like Ethereum, Chainlink, Litecoin, EOS, and Cardano, all of which carry multi-billion dollar market capitalizations. At the other end of the scale, you have crypto assets with a market capitalization of just a few million dollars with very few people aware of what the project does or who is behind it.

Ultimately, when thinking about how to invest in cryptocurrency, you need to be prepared to do lots of research before you enter the market. There are a number of retail investor-friendly platforms that provide invaluable research and educational materials, including but not limited to Coinbase, Kraken, and Binance.

Determine How Much Crypto To Buy

How much crypto should you have in your portfolio? Ive written an entire feature on the subject, but heres the TL DR:

I asked two seasoned wealth advisors for an exact number, and their two answers were:

• Maybe 10% so if crypto tanks, you can still retire but I still wouldnt recommend it.
• Get $100,000 in safe investments first, because if you secure $100,000 in safe investments by the time youre 35, and keep depositing another $100 monthly, youll retire a millionaire.

Not surprisingly, seasoned wealth managers arent big fans of crypto because it doesnt fit into an asymmetric risk profile. Its too unpredictable you cant build a 99% guaranteed wealthy future around it.

Bottom line? Start small. Stick with 10%, or better yet 5%, of your portfolio.

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What Is Cryptocurrency How To Invest In Cryptocurrency

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies dont have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

Pros Of Investing In Cryptocurrency

• Because the price of cryptocurrencies is not highly correlated to other investment classes, like stocks and bonds, having a small exposure to this potentially high-growth space can improve risk adjusted returns.
• Some experts compare crypto to gold: both are fungible and durable because theyre hard to destroy, scarce due to finite supply, and their purchasing power is not defined by any central authority.
• Thanks to the decentralization and transparency of the distributed ledger, its difficult to compromise the network integrity behind cryptocurrencies.

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Why Are There So Many Cryptocurrencies

Cryptocurrency is an emerging area with more than 19,000 crypto projects in existence, with very few barriers to entry. Last year, in particular, witnessed a crypto market boom, with thousands of new crypto projects added.

While some crypto function as currencies, others are used to develop infrastructure. For instance, in the case of Ethereum or Solana, developers are building other cryptos on top of these platform currencies, and that creates even more possibilities .

Cryptocurrencies Have An Unproven Rate Of Return

Trading in cryptocurrency is kind of like gambling. Because its exchanged person-to-person without any real regulations, theres no pattern to the rise and fall of its value. You cant figure out the changes or calculate returns like you can with growth stock mutual funds. There just isnt enough data, or enough credibility, to create a long-term investing plan based in cryptocurrency. Dont play poker with your financial future here.

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