financialtreat – will explain about How to Properly Invest in Cryptocurrencies that you will get in the following article. let’s look at this article carefully!
Curious about How to Properly Invest in Cryptocurrencies, before we discuss about the method it would be nice for us to know in advance about Cryptocurrency investing. Well, I will try to thoroughly explore what Cryptocurrency investment is.
The types of investments this time are increasingly diverse and of course more sophisticated. Cryptocurrency or crypto investment is one of the investment instruments that is quite popular among many people today, thanks to the sophistication of technology that is increasingly growing rapidly.
Get to Know About Cryptocurrency Investing
This investment is a digital currency that only exists in cyberspace. Cripto investments, especially bitcoin, were first introduced by Satoshi Nakamoto in January 2019. Bitcoin can then be used as a means of payment for various transactions such as purchasing game services and accessories to shopping for other things on goods to use.
From there, buying and selling Bitcoin became more widespread and popular until the emergence of crypto money. In addition to bitcoin other examples of cryptocurrencies are popping up such as ethereum,ripple etc. Here’s a more complete explanation of what Cryptocurrencies mean
Definition of Cryptocurrency
Cryptocurrency is a digital or virtual currency secured by cryptography. With the presence of cryptography, making cryptocurrencies is almost impossible to fake. Cryptocurrencies can also be used for transactions such as payments or transfers from one person to another online.
In addition, cryptocurrency can also be used as a means of payment for online purchase transactions by being exchanged into other currencies such as Dollars, Yen, Rupiah and other currencies. Other advantages of cryptocurrencies are:
- High return
- Universal
- Fast and easy
- Transparent
- Safe and legal
Assets or types of digital money on cryptocurrencies themselves are ethereum, ripple, litecoin, dogecoin, mrai, dashcoin, and so on. It can be said that currently cryptocurrency investment is starting to become the most demanded investment instrument today.
The popularity of crypto investment itself can be seen from the increasing number of cryptocurrency investors, including in Indonesia and the value of crypto assets has soared very high.
Types of Cryptocurrencies today
For those who only know that crypto investment is only bitcoin, don’t get me wrong. Here are some other types of crypto investments that can be tried:
1. Bitcoin
This type of cryptocurrency first appeared and was introduced in 2009 by a party named Satoshi Nakamoto. No one knows whether it is the name of a person, group, or company and no one knows also where they came from.
As of November 2019, there are more than 18 million bitcoins that have been traded with a total market value of around US$146 billion, as investopedia wrote. To date, about 68% of cryptocurrencies are bitcoin.
2. Litecoin
Litecoin is a type of cryptocurrency that was also present at the beginning of digital currencies began to attract the attention of many people.
Jenis cryptocurrency ini tepatnya hadir pada tahun 2011 sebagai mata uang digital peer-to-peer (P2P) which generates new blocks (which make up the blockchain) at a faster speed. So one of the advantages of Litecoin is that it allows users to make transactions faster without the need for a powerful computing system
3. Dogecoin
Dogecoin appeared in December 2013. As the name implies, dogecoin is a cryptocurrency that makes the Shiba Inu dog its mascot. Dogecoin has a much lower value than bitcoin. The use of this type of cryptocurrency is usually used for small transactions, donations, and tipping.
4. BitcoinCash
BitcoinCash was launche in August 2017 and has now manage to become the top five cryptocurrencies. This type was launche due to a group of Bitcoin users who disagree with some of the rules.
They then broke away and created their own digital currency called BitcoinCash. The group also did some improvisations that it said were better than the first cryptocurrency, bitcoin.
5. Feathercoin
Feathercoin is a type of cryptocurrency that is open source. This type of cryptocurrency was create by Peter Bushnell, an IT officer at Brasenose College, Ofxord Univesity in April 2013. Feathercoin also bears a resemblance to Litecoin and is under the MIT/X11 license.
6. Ethereum
Ethereum is a decentralized open-source blockchain system that features its cryptocurrency, Ether. ETH serves as a platform for many other cryptocurrencies, as well as for the execution of decentralized smart contracts.
7. Shiba Inu
Shiba Inu or SHIB was first launched in August 2020. ni is one of the best cryptocurrencies worth investing in in 2022.
8. Terra
Terra is one of the new cryptocurrencies that has made headlines due to its recent success. It is one of the best cryptocurrencies that will be worth investing in 2022.
9. Solana
Solana was launche in April 2019 as a project focuse on the permissionless nature of providing decentralize finance (DeFi) solutions such as payment processing, smart contracts, stablecoins, peer-to-peer lending services, and more.
10. Polygons
is one of the best cryptocurrencies that will be worth investing in 2022 which also aims as a platform to address many of the problems facing the Ethereum blockchain while still providing DeFi solutions.
That is, the platform looks to create an “Ethereum blockchain internet” by connecting an Ethereum-compatible blockchain network and incorporating scalable solutions on Ethereum.
11. Binance Coin
Binance Coin is develope and marketed by the Binance exchange. This digital currency is also use as a utility token to pay for trading and transaction fees at a lower price. It can be trade and exchange for other cryptocurrencies such as Ethereum or Bitcoin.
After we get to know about the next type of Crypto, how do we invest in this Crypto, if you have never invested in Crpto, take it easy, we will give you about how to invest in Crpto. Here’s the explanation:
How to Invest in Crypto for Beginners
The way to invest with cryptocurrency is to carry out buying and selling activities of assets on the exchange. This exchange functions like a marketplace, a platform that brings together buyers and sellers to transfer crypto assets.
The storage of bitcoins or crypto assets is carrie out in a ‘wallet’. The same when we have money, it is store in a wallet or safe, but the difference is that the storage of bitcoins is done digitally.
Wallets are provide by exchanges or investors can have their own wallets. Well, to make crypto asset transactions, investors must choose the ‘pair’ of coins to be transacte. The exchange will provide various pairs on the platform.
An example is Bitcoin / Rupiah (BTC/IDR). However, because bitcoin transactions occur between member exchanges, the price of buying and selling bitcoin between exchanges can vary. Investors can monitor it at any time on the internet to find out where the price of bitcoin is most competitive. The following is the sequence of the process of opening a new account for cryptocurrency investments and transactions:
- Open an account on a Bitcoin Exchange, or Bitcoin exchange.
- Get KYC verification
- Make a deposit (Rupiah & Crypto)
- Choosing a crypto asset pair
- Start order
- Next to make a buying and selling transaction
All stages are carrie out online without having to include personal data such as ID card numbers or cellphone numbers. If you don’t want to use a bank account to withdraw assets, you can transfer assets to PayPal accounts or digital wallets such as OVO and Go-Pay.
Read more financial independence:
- Investing From a Young Age to Achieve Financial Independence
- Acquaintance with FIRE (Financial Independence, Retire Early)
Be Careful with Investment Risks so that The Profit Can Be Maximize
No investment has no risk. So it is with crypto investment. The risk of cryptocurrency itself is high volatile, minimally regulated and the threat of cybercrime is quite high. However, this risk can be minimize if you use an investment platform supervise by the OJK and have obtaine permission from Bappebti (Commodity Futures Trading Supervisory Agency).
In essence, no matter what type of online investment you want to pursue, the main thing is to ensure the legality of the investment platform to avoid fraud.
For the sake of the above review on How to Invest Properly in Cryptocurrencies. The information above provides an overview for you of the development of an increasingly diverse world of investment. Well, hopefully the information above can also make useful information for you.
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