The Modern Day Gold Rush

As a result of the recent popularity of Cryptocurrencies and Blockchain technology over the last couple of years, the daily global trading volume has increased by a tremendous amount. At this time two years ago, the daily volume across the market was at 133.8MM. Today this number stands at 16.28B, which is over 100 times the amount it was previously.
With the rise in daily volume, there has been (and continues to be) a large influx of new users joining this modern day gold rush. Many new users (if not all of them) are unaware of the research and dedication which are necessary to be a successful investor in the cryptocurrency ecosystem. In this blog post, we intend to show 8 most frequently asked questions about investing in cryptocurrency along with our analysis on how to answer them.

8 Most Frequently Asked Questions About Investing in Cryptocurrency

Below are some of the most frequently asked questions asked by new investors in the crypto ecosystem. While our answers are intended to be helpful, we do not intend for them to be used as investment advice. In the digital asset world, it is suggested that investors do as much research prior to and during their investment process. Without further ado, here is our list:
  • How do you buy cryptocurrency?
  • How much money should I invest?
  • What is the best cryptocurrency to invest in?
  • When is the best time to buy or sell?
  • What drives the price of many cryptocurrencies?
  • How can I prevent my cryptocurrency from getting hacked/stolen?
  • Where can you find additional information on cryptocurrencies?
  • Why aren’t more people investing in cryptocurrencies?

How do you buy cryptocurrency?
The answer to this question may vary depending on geographic location. The easiest and safest method is to register an account with an exchange that allows fiat (dollars, euros, etc.) to be purchased directly for cryptocurrency. In the United States, Coinbase is one of the most popular fiat to crypto exchanges that allows users to purchase Bitcoin, Ethereum, Litecoin and Bitcoin Cash. A quick google search can lead you in the direction of the best fiat to crypto exchange available in your country. If the investor would like to go different route to purchase cryptocurrency, there is also the option of purchasing via a Bitcoin ATM (or BTM for short) as well as Local Bitcoin/Local Ethereum which is a person to person “meetup” service, where fiat is exchanged for crypto right in your own immediate area.

How much money should I invest?
As a word of advice, it is recommended that investors invest as much as they are willing to lose. To begin, cryptocurrency in general is still very much a speculative asset, and as a result, different digital assets experience an extreme volatility within the market. Factor in scamming and hacking and investors will quickly understand that investing in cryptocurrency is something that should be taken seriously and with the proper due diligence. As many in the community say, “with great risk comes great reward!”.

What is the best cryptocurrency to invest in?
The answer to this question will depend on the user. While there is no “can’t miss” cryptocurrency to invest in, Bitcoin is a great place to begin as it is one of the most popular cryptocurrencies available with a large share of the global market. Digital assets with real world use cases are just one of the many examples of the various assets you can invest in. Again, the research is the key to make the most practical decision. An informational website such as Coinmarketcap.com has a bit of information on the various cryptocurrencies available for research purposes.



When is the best time to buy and sell?
As the old trading/investing adage goes, “buy low, sell high”. Once again, this is a question best answered by each individual investor. Fundamental Analysis (intrinsic value measuring) and Technical Analysis (identifying trends and patterns on an asset’s chart) are two methods traders in the ecosystem like to use as it gives them an educated prediction on how a particular crypto-asset will fare in the market. Another tip is to set specific entry and exit points for both short-term and long-term trades to assist your decision making process.

What drives the price of many cryptocurrencies?
At this moment in time, exchange listings on popular exchanges and partnership agreements drive price points up by the largest percentage. In addition, technical improvements, use case expansion and addition of a team member from a well-known company or industry can result in a positive correlation. Many of the cryptoasset-related message boards, social media platforms and discord/slack servers can keep investors and traders up-to-date with the latest information.

How can I prevent my cryptocurrency from getting hacked/stolen?
In order to have full control over your various cryptocurrencies, you must own the private keys for your assets. While online exchanges do seem like reasonable places to store your assets, they are susceptible to hacking, fraud and sometimes incompetence. If it is decided an online exchange will be used for storage purposes, 2 Factor Authentication (2FA) is strongly recommended. A hardware, online or paper wallet allows the investor to be in absolute control of his/her funds. In addition to the above, investors are urged to never reveal their private keys to anyone as this will allow hackers to empty out your wallet. Therefore, investors should always use common sense when dealing within the ecosystem as scams can be found on every corner.

Where can you find additional information on cryptocurrencies?
As it was previously mentioned in the post, crypto-related message boards, social media platforms and discord/slack servers can keep investors and traders up-to-date with the latest information. Additionally, there is a number of helpful web pages and online wikis available to help the beginner gain a fundamental understanding of the ecosystem.

Why aren’t more people investing in cryptocurrencies?
At this point of blockchain and cryptocurrency adoption, we are in the tail end of the early adopter stage and beginning to enter the early majority stage. Many top businesses, investment banks and even local/national governments have expressed interest in crypto and the blockchain. Consider yourself in a good company if you have already made an investment into this ecosystem. The fun is on the way!

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