Investing in digital currency
Cryptocurrency investments are prospering as we enter 2021. In the first weeks of January, three of the largest cryptocurrency tokens posted huge gains which drove the market’s total value to $860B. The once unknown phenomenon has gained acceptance from U.S. and global governments and financial giants. Remember in 2017 when crypto coins were trading as a high asset around the world even though they were considered new and volatile? For example, in December of 2017, the market capitalization doubled by hitting $629B. Then when we entered into 2018, where crypto coin investments began falling.
Historically, cryptocurrencies were not designed to be part of the investment market, just an interesting medium of exchange to principal currencies like the dollar, yen, and euro. As you know, investing in cryptocurrencies is something that you can’t get from a bank or even a brokerage firm.
Should I Invest?
Cryptocurrencies are continuing to make inroads into being a strong medium of exchange. As the years have passed, hundreds of cryptocurrencies have come and gone. Now, bitcoin emerges as the standard-bearer of this currency exchange. What does this mean for your investment evolvement? Let’s just say that if you have not added a few cryptocurrency brands to your portfolio, whether you are a neophyte or a seasoned investor, now is a good time to look into crypto tokens like bitcoin and Ethereum. One of the important queries by Bitcoin pros and newbies is how to smartly invest in cryptocurrency investments in 2021. As an enticement, here is an example of your bitcoin return if you invested in December of 2020. In December 2020, bitcoin cryptocurrency investments were at a significant high. If you chose to invest in bitcoin with a $1,000 investment, bitcoin was being traded at $23,606. This means that your return would come back to you at a 230% return, meaning that you made 3,296.67.
This is not to goad you into investing in cryptocurrency tokens or coins, but if it helps, big names in the retail industry and financial giants like Visa and Mastercard are investing more in cryptos.
How Do I Start?
Let’s look at a couple of tips that make investing in cryptocurrencies a good speculation:
i. Wait until the price of bitcoin is on a downward bearish trend of what is considered stable. Is there a perfect time? – No. You just never know when an upward trend will be followed by a downward trend. In 2020 bitcoin came tumbling down hard. But what is typical of bitcoin investing is that the downward trend rocketed up again quickly. Cryptocurrency is being viewed as investing in gold because they are a relatively fixed asset at a time when the global dollar is flattening out. Bitcoin and other digital currencies remain an unknown factor against rising inflation. They fall and rise, fall, rise, rise. This is the financial secular trend of digital currencies. As we have mentioned, the previous patterns of investment prices are about the adaptability of the market in favor of bitcoin exchanges, cryptocurrency, and blockchain technology that helps to fuel its rising prices.
ii. Don’t put all your eggs into the bitcoin investment strategy. Start your investment with a small amount. How much should you invest? There is no exact amount needed to invest in bitcoin or other digital currencies. No one can predict what bitcoin investments will do in 2021. For this reason, a low dollar-cost average investment strategy is best. You can invest as low as you want or as much as you want. Again, invest small at first. Buying smaller units of investment is called “satoshis.” Remember to become an informed buyer or trader. There are over 1500 cryptocurrencies. When you get ready to buy into any of them, choose those that you have been researching in its market volatility.
iii. Set-up A Wallet In order to buy bitcoin, you must set-up a virtual wallet. Yes, a wallet is what it sounds like. Your virtual bitcoin currency is stored in it. There are brand names you can use to establish a wallet that is accessible with your computer, tablet, or smartphone. Other types of wallets include mobile wallets and desktop wallets. Open an account with the coin of your choice, deposit fiat, and purchase the cryptocurrency.
