By If you’ve been on the web for the last four or five years, chances are you’ve heard the terms Bitcoin, Crypto or Blockchain. If you haven’t then perhaps it’s time you come back to the light from whichever cave you’re currently hiding from technology in?
If you’ve already invested in Bitcoin or cryptocurrency then this article probably won’t interest you. This piece is for all those parties out there who are considering getting a slice of the crypto pie.
Of course, you’ve probably heard the old chestnut that the best time to purchase Bitcoin was eight years ago but another answer to that question would be is the fact that the best time is today. As one Bitcoin is divisible to up to 100 million places, there are more than enough BTC’s to go around. This means first-time buyers are able to purchase as much or as little as their heart desires.
But one doesn’t have to feel as if they should be obliged to only purchase the famed Bitcoin as there are tons of other cryptocurrencies available out there for first-time buyers to consider.
So why buy Crypto?
Why invest in this digital currency that has had the world talking for the last few years?
While some people buy into these digital currencies as a way to invest others might use it only to make discreet online purchases. Some people use it as a digital savings account and others use it as a hedge against the ever-present inflation present in many countries around the globe.
In a nutshell, there is no ONE right reason to buy crypto. If you’re someone like me, buying a small amount is actually the best way to fully understand it.
The type of crypto you might be more exposed to depends on where in the world you might live. For example, people in Asian countries are all about ripple (XRP) and ethereum (ETH) while in less developed countries such as Nigeria or Venezuela, the popular currency is Dash.
What should I know before I buy crypto?
There’s no wrong coin to purchase but there are certain coins that one should probably avoid as a first-time investor. One needs to be wary of these cryptocurrencies that pop up and promise the buyer guaranteed return. When you hear the phrase “It’s guaranteed to go up” this should serve as an alarm bell.
If a friend or family member has recently copped it in a big way from an investment one should feel as if it’s the time to jump on the same “gravy train”. In fact, this is sure sign that you should look elsewhere for your first purchase.
If you’ve been considering diving into the world of cryptocurrency a get rich quick attitude is the wrong one to have. Of course, many currencies will increase with value over the coming years but many will depreciate and some will even die out.
Cryptocurrencies and the advent of discreet digital transactions are still in its infancy and thus volatile. As a general rule the smaller the market cap of a currency (i.e the price per coin multiplied by its total circulating supply) the more volatile it is.
Why? Because smaller market cap coins bear lower liquidities which means that even smaller purchases or sales can drastically alter its price and of course have a smaller community of traders. Then there is Bitcoin. The father of cryptocurrencies. Many consider BTC to be the gold standard of cryptocurrency as it’s the been around for the longest and has millions of users.
Where To Buy Crypto?
In addition to deciding on which cryptocurrency to invest, one also has to consider where to purchase from. There are myriads of sites where you can purchase coin from and you have to carefully consider your choice before adding to your wallet.
If you don’t have a credit card, for example, there are many resources at your disposal. Sites which enable users to use to purchase cryptocurrency via PayPal, bank transfers/EFT or even via good old cash. Alternatively, you can purchase crypto via exchanges such as Coinbase, via apps like Circle or Wirex, the only hoop you’d face here is providing identification documents. Be sure to check that you’re not being overcharged by using Coinmarketcap or Satoshi Pulse for up to date prices on all the big cryptocurrencies.
If you’re looking to purchase BTC, BCH or ETH, all you have to do is hit up Google, type in your desired currency plus the coin name and boom, you’ll have the correct price instantly!
Beware of certain sites that charge premiums. Sites like Localbitcoins.com will charge up to 7% over the market price. Some portals also charge for credit card transactions. Aside from less developed countries with minimal crypto penetration, one should not be paying more than a small percentage of the market price.
Where does one store the crypto?
With most sites that sell coin, when you purchase any amount, the funds will be deposited into a built-in site wallet associated with your account. Now, one could leave these funds in the wallet until the day comes that you want to sell. This is not recommended. Firstly, until you start using it, by either sending small amounts to friends or family or purchasing products and services, only then will you be able to fully appreciate the value and versatility of cryptocurrency.
Also, should the site be compromised in any way, let’s say it suffers a hack, then you’ll, unfortunately, lose everything. What makes cryptocurrency so unique and perhaps one of it’s best selling points is the fact that unlike money stored in your bank account, it is only yours once it is stored in a wallet that you hold the only key to. No one, friend or enemy, government or bank can seize or freeze it!
Check out the popular bitcoinwallet.com which is a popular choice with over 3 million users to date! Other popular wallet choices include Edge and BRD. Of course, if you’re someone who’s intending to hold onto your precious coin for a long time, then a hardware wallet is a great option.
All in all, if your intention is to invest in cryptocurrency, don’t invest more than you can afford to lose and do your research!
Once you’ve taken the plunge, however, and start putting coins in your wallet then you’ll only begin to appreciate the potential of cryptocurrency.
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