I’ll be honest with you: I don’t know about bitcoin or cryptocurrency. But I do have a lot of friends talking about it, and making me feel like I’m missing out on something. So, after some digging, I found a few videos that cover the best strategies for investing in cryptocurrency.
First: What Is Cyrptocurrency?
According to Investopia, “A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.”
Bitcoin was the first cryptocurrency, which is why you hear that name tossed around like a generic term. It’s like the Xerox for copiers.
Cryptocurrency has gotten a bad rep because it can be used for illegal money laundering or tax evasion.
You can convert cryptocurrency into cash (you know, so you can buy stuff) but it’s not like you can go to an ATM machine or bank to do it. Companies like Bitcoin have a way to do it on their app/website. You can also sell it on a cryptocurrency exchange, such as Coinbase or Kraken. According to Banks.com, “This is the easiest method if you want to sell bitcoin and withdraw the resulting cash directly to a bank account.”
So, now you know what it is, and how you can get it to become cash in your pocket. The next question is: What are some smart strategies for investing in cryptocurrency?
Below are two videos from Bitcoin Tips that might be helpful. The first features Bitcoin Sorority and their thoughts on investing in cryptocurrency. Hosts @Cryptofinally and @missqueencrypto talk about how they like to invest in Bitcoin, altcoins, and what kind of exposure they have to the crypto market. Learn about portfolio diversification, and limiting exposure to the wrong projects.
The second video is a bit deeper, focusing on the pricing and some smart strategies they use — and which can help you. Hosts CryptoFinally and Bentwan tell you to be careful with the influencers and media you listen to when it comes to crypto. The two talk media and the effect this can have on your investing and trading habits. They give you tips for navigating the crypto world while seeking out the right information.