The Beginner’s Guide To Cryptocurrency–Investor Version

When some investors first hear the term cryptocurrency, they think it might be something like PayPal. Many are surprised to find it’s a brand-new digital currency. Here’s a beginner’s guide if you’re thinking about investing but don’t have all the information.

Understand What It’s About

You need to know everything that you can about what you’re investigating.

Buying traditional stocks means reading annual reports and SEC filings, including the 10K form. It provides an overview of every company’s financial statements and risk factors.

Cryptocurrency is different. Cash flow or hard assets don’t back it. Crypto relies on the market becoming more bullish and optimistic.

Look To The Future

Looking only at the past performance of this digital currency can be a mistake. For example, Bitcoin was only worth pennies at one time.

Investors should be looking toward the future. Focusing on what any asset has done previously is never a good idea. Traders and investors need to look toward possible future gains.

Manage The Risk

You’ll need to manage your risk with cryptocurrency. It’s important to develop a process that can be different for each individual. For a long-term investor, this can mean hanging onto the asset regardless of the price. These people generally have a long-term mentality.

Short-term investors needed specific rules. Here’s an example. They might decide to sell when the investment falls below 10%. This way, a small decline doesn’t become a big loss.

Watch Your Budget

Make sure you know your budget when you’re investing in cryptocurrency. If you can’t afford to take a loss, you shouldn’t be investing. These types of speculative assets can bring big returns. However, you need to be ready for big losses too.

Make sure you look at the security of the broker or exchange you’re using. Investing in a crypto wallet to hold any of your coins offline might be a good idea.  

Other Ways to Invest

Cryptocurrency is the most popular way to get involved. Here are other investment options:

• Crypto futures are a way to place wagers on the price swings that Bitcoin goes through. This market is fast-moving, and you can win or lose big.
• Blockchain ETFs. This is a great way to invest in this new technology. It’s important to remember that some of these companies do different kinds of business. Not everything will be crypto-related.

People ask how much money they need to get involved with cryptocurrency. Usually, there’s a minimum that’s as low as $10. Some crypto trading apps might even have lower numbers.

An investor looking to get started with cryptocurrency should try Ethical Ijara.  This company is changing the homeownership process. They are using a decentralized crypto token that is rooted in rent-to-own real estate. ETHi is secure because it is based on this model. Returns that investors get come from the rental payments that tenants make. That means your tokens will grow over time and provide a good ROI.