Cryptocurrency has taken the world by storm, and with the prices of Bitcoin and other crypto assets currently soaring high, this trend isn’t going to slow down any time soon. While many have been skeptical of cryptocurrencies in the past, the acceptance by some large companies and investors has opened up the doors for smaller investors who now have more confidence in trading in cryptocurrencies.
One of the challenges that many who are new to cryptocurrency trading face is getting started – as in finding the right trading platforms, digital wallet, and, of course, the right digital asset to invest in. Keeping that in mind, here we are going to take a quick look into the factors that investors need to consider if they are new to crypto investing.
The first thing that you need to consider when deciding to invest in Bitcoin or any other cryptocurrency for that matter is to choose a reliable digital wallet. This will be used to keep your digital assets safe from prying eyes. According to experts, it is advised to keep at least 80% of all your digital assets safe in a wallet. For those of you who do not know, a client wallet is basically a software application that you can download on your computer and is designed to hold all of your digital assets on your PC.
There are quite a few options when it comes to wallets when it comes to cryptocurrency, which is why new investors need to get familiar with all of the options that are available. For instance, another example of where you can keep your digital assets safe is a paper wallet. This where you print out the software access key so that you can get access to your digital assets when needed. Another example of a wallet is known as a hard wallet, and as the name implies, is a hardware device where you can keep your digital assets safe offline.
The fact that a hard wallet keeps your crypto safe offline offers a better level of security for your assets. The good news is that whichever option you choose to go with, you are going to find plenty of options, all of which come with their pros and cons. As a rule of thumb, it is always best to weigh and compare the different types of crypto wallets and wallet providers before you make a decision.
This is another important question that needs to be answered before you can start investing in cryptocurrencies. Choosing the right currency or token can make all the difference in the profits that you are able to garner from your investments over a short-term and long-term period.
It is also important to take into consideration the possibility of scams when you decide to do day trading. Before choosing an option, do your due diligence and carry out the proper research into the creators behind the cryptocurrencies that you are interested in. The following are some things you need to know about the various cryptocurrency choices.
This is another excellent option for those who are interested in investing in cryptocurrencies. It is based on Ethereum and is a decentralized and distributed computational power. This means anybody is able to make money by renting out their computing power or selling the software.
This is considered by many to be a next-generation Blockchain technology that doesn’t utilize the term blockchain. What makes it unique is that it addresses many of the difficulties that Blockchain systems encounter, such as rising transaction costs, etc.
Of course, we all know about BTC, which is widely considered to be the genesis of blockchain tech. Currently, it also enjoys the highest market cap, which is what makes Bitcoin so attractive to new investors. For more on the options and the best ways to start with cryptocurrency investing, visit the Bitcoin Era app.
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