Cryptocurrencies such as bitcoin and ethereum have caught the fancy of many speculators in recent years. These digital currencies are now regarded as one of the hottest investment commodities presently available. The exchangeable, immutable cryptographic tokens will soon become non-manipulatable hard money for the entire world. Their advocates are seen evangelically proclaiming that bitcoins and other varieties of cryptocurrencies will soon substitute dollar, euro, etc., for developing the first free and hard currency of the word.
Owing a bitcoin is similar to having a share in this revolutionary venture. If a bitcoin—or any other cryptocurrency for that matter—ever replaces a central bank’s monetary reserves or becomes the most dominant currency for international trades, the value of a single bitcoin will be way ahead than 10,000 dollars.
If you buy a cryptocurrency, you will indirectly bet on this new form of money and its success. In the recent past, many investors have been absolutely successful by speculating in bitcoin and other cryptocurrencies. Now, here are a few interesting facts about cryptocurrencies that everyone who’s interested in investing in it should know.
Hard-hitting facts that tell the evolution of the digital currency
- Since 2011, a leading cryptocurrency—bitcoin—demonstrated an increase of nearly 25,000 percent in its value.
- Since May 2016, Ethereum’s value surged by close to 2,700 percent; that is indeed one of the fastest rallies any cryptocurrency has managed to demonstrate until now.
- If the entire cryptocurrency landscape is analyzed, the entire market cap has risen by nearly 10,000 percent since mid-2013.
- Last and latest—a bitcoin just touched first $5,856.10 mark on November 10 and then over $7000 mark week later on 2017. It’s a matter of time when it will hit $10000 mark and more.
All these numbers surely let you trust this new asset because no other investment commodity has ever been able to show such a remarkable vertical take-off. So if you understand the potential benefits of this new form of money and believe in this innovative vision, today will be the best day to begin your investment journey in cryptocurrency. That is exactly why we are giving you this ultimate guide to understanding how investments are to be made in the digital-currency landscape.
What makes speculators invest in cryptocurrencies?
The three major reasons why it is always advisable to invest in digital currencies are given below.
- First, you need to invest in cryptocurrencies because you will need to hedge your entire net-worth against the dollar’s fall—this assumption is given by many investors and trade pundits.
- The investment can come as the result of your support to the glorious, social vision that is driving the concept of cryptocurrencies—the vision of having free and hard money for the entire world.
- Last but not least, because you will completely understand and like this technology.
Which all Cryptocurrencies should you buy?
The ecosystem of the digital currency is still evolving, or it may be confusing for any first-time speculator; it is a market where you will find many opportunities to make a lot of profit. Every day, you will find some new coins getting established while few old ones dying completely. Every day, you will experience some of the most established digital currencies falling heavily while some rising vertically.
As an investor, you, first need to build a pretty strong portfolio. Few more crypto currencies came into circulation eventually, with Bitcoin retaining its leading position. Put simply, in the past, if you needed to invest in cryptocurrencies, you could have done that through bitcoins only, period! While apart from bitcoins, the initial years of digital currencies even saw the rise of penny stocks—referred to as altcoins—on a few shady online markets
Nevertheless, this has changed now. While in 2017, a bitcoin is still a dominant cryptocurrency, its total share in the crypto-market has plunged from 90 to nearly 40 percent. And many speculators and analysts saw this coming as the rise of ethereum and as the bitcoin community’s self-tearing done because of the blocksize issue.
So if you ever needed to speculate in cryptocurrencies, bitcoins will be the staple of every portfolio. But if you’re looking forward to building a more reliable crypto-portfolio today, you will find in it a number of coins such as:
- Ethereum Classic
Now, if you ever wanted to have a totally balanced portfolio at a single point in time, it will be a great strategy to reflect the ten most valuable currencies first. For instance, some can be fit for smart contracting such as ethereum classic or ethereum; while then there are others that can let you experience scaling payments such as dash or litecoin; likewise, there are some coins, such as BitShares or ripple or NEM, that seem to be decentralized or less open as bitcoins.
So that is precisely why you may want to read about all of these digital coins at length, and then decide which one of them can be a true asset for your portfolio—which one of them can simply suit your needs and budget.
Demystifying the process of buying a cryptocurrency
While a few years ago, it was purely an Odyssey to lay your hands on cryptocurrencies—but now you have a full gamut of options that have seriously simplified the way virtual currencies are traded today.
Exchanging traded notes
We will begin with the ways through which you can buy a bitcoin. However, there are a few investors who face a lot of problems when it comes to storing this popular virtual currency. But as bitcoins are rising, more and more exchanges and brokers are trying to set up a financial product based on this digital currency. With the development of a bitcoin-based financial product, more investors find it simpler to buy this specific variety of crypto coins. Apart from bitcoins, there are no individual investment products that cover many cryptocurrencies today. However, the development work in this regard is in full swing.
Buying bitcoins is the real deal
There is so much written and said about how should anyone buy bitcoins—but the presence of a lot of information, it seems, has created a lot of consumers, and that is why there is a need to clear the air. There are two ways of buying bitcoins; you can either buy them through exchanges and put them to your bitcoin wallets, or you can directly trade them through brokers or dedicated marketplaces.
So we hope this beginner’s guide has given you a basic understanding of how should you go about investing in digital coins—especially bitcoins. Now, if you truly want to invest in buying digital coins, you should keep tabs on the evolutionary journey of revolutionary virtual currencies. And the best way of keeping track on these currencies and knowing when to invest in a bitcoin or any other digital currency is by getting in touch with a credible broker who gives you the best deals.