Thanks to the growing worth of cryptocurrencies, such as Bitcoin, you can buy a lot more than a pizza. Or you can buy a ton of pizzas. It’s your choice.
Like most people, you’ve heard the buzz about crypto and even shared a few memes about it without knowing what it is. All you know is that people suggest investing in it. Well, we’re here to give you the inside scoop on investing in crypto, and we’ll then explain why it’s such a good idea. But, man, imagine all the pizzas you’re about to have.
But Wait...What Is It?
In order to make thoughtful decisions when investing in cryptocurrency, it’s essential to understand what it is, as these factors affect its nature. A cryptocurrency is a digital payment form with no centralized entity controlling it. That means no banks or mysterious branches of government.
Every transaction of crypto is tracked and verified through a blockchain. A blockchain is like a digital checkbook that keeps up with transactions in code. Oh, also, everyone has access to this checkbook.
It’s essential to keep in mind that there is a limit to cryptocurrency. People who understand the systems use major processing systems to uncover new crypto until reaching the limit. This process is called ‘mining.’
What Does This Have To Do With Anything?
Understanding the making and nature of crypto will help you make better investing decisions. Crypto is an excellent investment opportunity, but it does come with risk.
Because crypto’s value lies within the people’s hands, not a bank, its value is volatile. So no matter the crypto you invest in, there will be rises and falls. Investing in crypto can be an emotional investment for some people, so remember to keep your cool. Don’t let your emotions crash if there’s a fall in value.
The Different Types Of Cryptocurrency
There are thousands of cryptocurrencies you can invest in, thanks to the popularity of crypto. everybody wants a piece.
Because we don’t have the time or energy to review the thousands of crypto options, we’ll hit a few of the most popular types. If you’re new to the game, carefully compare your options before investing.
Bitcoin
Ah, yes. The famous Bitcoin. It was the first crypto created, and we still don’t know who made it. Weird, right? The creator remains anonymous while using Satoshi Nakamoto as their secret name. Investors often gravitate towards buying Bitcoin because it’s been around the longest and currently holds the highest value.
Dogecoin
We can’t believe it’s not just a meme, either. Dogecoin is one of the most popular investment opportunities on the crypto market.
If you consider yourself a meme and pop culture connoisseur, you’ve probably considered investing in Dogecoin. While we’re not saying it’s a lousy cryptocurrency to invest in, we do suggest proceeding with caution when investing in something because it’s popular and quirky.
Ethereum
This cryptocurrency sounds like something Superman would be allergic to, and it’s become extremely popular with online investors. Ethereum is a blockchain platform that uses its unique coding language called Solidity. Ethereum blockchain users can create and use applications known as ‘dApps.’. They are then charged varying fees for using these apps based on how much processing power each application uses.
Should I Invest Or Not?
We know you’ve been waiting for some sign from us letting you know if you should invest or not. We’ll give you the green light in a school zone.
This signal means to go right ahead but proceed with caution and rational thinking. For example, don’t blow through the school zone going 200 mph. Instead, do your research, and know your limits! Investing in crypto, while it can reap significant rewards, sometimes feels like gambling. People find themselves in trouble when they walk into a Las Vegas casino with zero prior knowledge and experience of the card game they’re about to play. Do your research to understand the intricacies of the blockchain, your digital wallet, and how to perform transactions. If you’re interested in mining, understand the hardware and computing power you need to succeed.
The Pros Of Crypto
Our aim isn’t to scare you. Instead, we’re like the fun, encouraging grandma who wants the best for you while protecting you. Take a breather because cryptocurrency has numerous advantages—one of the significant benefits is the currency’s overall transparency.
The blockchain (the ever-expanding checkbook) is public. Each transaction is recorded in detail and fixed. Scammers can’t mess with it because it’s written in stone- a digital computer stone. As long as you have a reliable device and strong internet connection, you can access cryptocurrency wherever, whenever. While we don’t suggest it, this means you can invest in crypto during a 2 am Uber ride. And even though there’s risk involved when investing in crypto, there’s also considerable potential for appreciation, which is especially true for newer cryptocurrencies with an expected growth trajectory.
Keeping Up With The Modern World
So much of the business world is starting to get the hang of crypto. Because of this, your current crypto investments will create future opportunities.
Did you know Microsoft accepts crypto as payment for games and other digital content? Twitch, the popular streaming service, also accepts multiple forms of cryptocurrency. Heck, you can even use Bitcoin at Whole Foods! As technology develops, you’ll be at the frontline of exciting advancements due to your crypto investments. It’s essential to keep up with the hottest news in crypto technology for this reason.
Beware Of Scams
Sorry, we’re going to give you another scare, just for a second. Beware of crypto scams or cryptocurrencies with no real backbone.
Because crypto is both popular and unregulated, tons of people are trying to develop their form of digital currency. Some people are even paying celebrities and popular influencers to promote their currencies. Just because you love Snoop Dogg doesn’t mean you need to invest in a cryptocurrency Snoop Dogg starts promoting. Please read up on the specific cryptocurrency, the makers, and its overall potential for growth. While there’s always the chance for appreciation, not all 12,000 (or how many ever) cryptocurrencies will gain traction. So don’t throw away your money.
Diversify Your Investments
To take your crypto investments to the next level, diversify your investments. Put some eggs in the Bitcoin basket, others in Ethereum, and a couple in Snoop Dogg’s favorite crypto. Diversifying your investments adds excitement and creates a safety net. If one cryptocurrency tanks one day, your investment in another could grow. You’re out less money than you would’ve been if you’d fully invested in the crashing currency.
Think outside of the crypto box when learning about investment opportunities. For example, could you look at stocks? What about investing in a rental property? Make cryptocurrency only a piece of your life’s investments. Then, stand back and watch how quickly your net worth increases when you create multiple passive income streams.
Learn From Others
Gain knowledge and inspiration from successful crypto investors. There are plenty of people with happy endings that can teach you how to create your own. You might even know a friend or family member who invested in cryptocurrency. Chat with them about their obstacles, insight, and current challenges.
Books
Take a break from the digital world to crack open a book about crypto. Plenty of books will teach you the history of crypto, how blockchains work, and what to do to become a successful investor.
Learn more about Bitcoin by reading Mastering Bitcoin: Programming the Open Blockchain by Andreas Antonopoulos. Grab the latest edition for time-relevant Bitcoin info.
Cryptoassets by Burniske and Tatar gives an easy-to-understand background on cryptocurrency. As a future investor, it’s crucial that you understand the history of the industry.
Bitcoin From Beginner to Expert by Christian Newman is an excellent book for building your foundational knowledge of crypto and blockchains. In addition, it’s a great starting point for those still discovering the crypto world.
Podcasts
If books aren’t your jam, there are many podcasts about crypto for your listening pleasure.
To hear from experts in the crypto world, listen to Unchained by Laura Shin. This podcast is excellent for beginners because it introduces you to big names to study.
Listen to the first few episodes of the Hash Power podcast by Patrick O’Shaughnessy for a better understanding of blockchain’s technical and theoretical creation.
Moon or Bust, part of the Benzinga podcast group, chats about new terms and cryptocurrencies in the market. If you’re curious about a new, popular currency, there’s a good chance they’ve discussed it.
Developing Your Skillset
Investing is the gift that keeps on giving. By building your skillset now and investing in crypto, you’ll only continue to grow your skills. (And your wallet.)
The skills you’ll need to invest in crypto and be able to grow include adaptability, discernment, and discipline. You’ll also get pretty good at pattern recognition and foreshadowing.
Adaptability
Too many of us adopt a life of rigidity. Instead of taking calculated risks, we avoid danger altogether. While this option is safer than a more spontaneous approach, you’re missing out on the fun and growth opportunities.
Instead of hiding from the crypto market, learn how to adapt alongside the market. New techniques and technologies are emerging daily, and you need to keep up to succeed. Also, the strategy you used last week may not work this week. Don’t panic. Figure out a new approach. Keep up or fall behind.
Discernment
Have you ever listened to a person talk about intuition and discernment? You probably thought they were speaking gibberish. But, well, they make some excellent points.
Approach crypto with judgment. Learn how to weed out the nonsense and promotional gunk. So much of the crypto world is about persuasion, so it’s essential that you develop a sixth sense of what will work. Needless to say, you will make poor decisions. Everyone in the crypto world does. So don’t let it get you down! Dust yourself off and try again!
Discipline
Imagine if we only had to work out once and eat a salad to look like a supermodel. But, unfortunately, that’s not how life works.
Learn the steps to take to achieve the desired result. Then, continue taking those steps even if it becomes discouraging, boring, etc. Some people have overnight success with crypto, while others find success after months of hard work. Keep an accurate trading journal. Review your transactions and investments. Stay on top of the numbers. Being disciplined will keep you grounded in the chaos that is in the crypto world.
Investing In Crypto Is Investing In Your Future
Are you tired of hearing the talk without walking the walk? Then, it’s time to start investing in your future by investing in crypto.
Research the intricacies of blockchain technology and explore your options for cryptocurrency. Keep your wits about you when investing because discipline, discernment, and adaptability will take you far.
Making your first crypto investment is thrilling! Byte Federal is here to help you start banking smarter in the crypto world. Check out our crypto ATM locations, and contact us today with any questions.
