If you’ve ever seen a cryptocurrency chart, you know that the numbers don’t go up in a straight line. It’s more like a heart monitor after someone’s been running on a treadmill for too long—jagged, wild, and erratic. The price of cryptocurrencies can fluctuate significantly in the span of just 24 hours.
This volatility can be intimidating to investors who want to buy cryptocurrency but are concerned about market risks. Cryptocurrency is still young. Bitcoin has only been around since 2009, which is barely enough time for investors to adjust to its existence, let alone learn how they feel about it as an investment opportunity.
Moreover, there are no regulations governing the cryptocurrency market yet. A lot of the volatility here comes from the fact that people don’t have much context for evaluating cryptocurrencies. So before you jump in head first, let’s make sure you know what you’re getting into. Here are six things you should know about cryptocurrency.
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You Can Buy Cryptocurrency With a Credit Card
People all over the world are jumping on the crypto bandwagon and buying cryptocurrencies with credit cards. It’s a great way to have the opportunity to buy digital currencies from your favorite websites, build up a portfolio, and make some extra cash at the same time. But before you do it— here are five things you should know about cryptocurrency trading—it’s important that you read this brief first.
- You can use your credit card to buy cryptocurrency, but let’s be real: That credit card might get declined. So if you’re excited to start trading in cryptocurrency because of how easy it is, relax. You’re going to have to use another method of payment like wire transfer or even PayPal (which is a little tricky because there’s no telling what fees they’ll charge). And then you’re going to have to wait for that payment transaction after it clears through your bank account, which could take days or weeks.
- Some people may worry about being hacked by unsavory websites when sending money online; however, modern technology makes it incredibly easy for identity thieves and hackers alike (whether human or automated) to find out where you live and which websites you frequent online; thus, there are far fewer scams than ever before thanks in large part because of the increased protection from advanced security systems like two-factor authentication (2FA), two-step verification (2SV) or multi-factor authentication (MFA).
- The value of cryptocurrency can fluctuate dramatically week over week and month over month; however, this isn’t always a good thing since it often happens in times when financial markets are unstable. This causes volatility in prices on traditional stock exchanges when markets fluctuate and in times when major governmental decisions or regulatory changes come into play, causing price fluctuations.
You Can Use the Cryptocurrency You Buy to Buy More Cryptocurrency
You can use the cryptocurrency you buy to buy more cryptocurrency. Cryptocurrency is a digital currency, meaning it’s a form of currency that exists in the digital space. While cryptocurrencies have been around for years, they’re getting more attention as we move into an era of mass tokenization.
When you purchase cryptocurrency, you’re purchasing an asset that is meant to be held for some time in order to (hopefully) increase in value before being sold off and cashed out.
You can exchange your Bitcoin or other cryptocurrencies for cash on exchange markets by making deals with other users looking to get rid of their crypto holdings, but that’s not what most investors do with their holdings. Instead, many investors trade their cryptocurrencies for other types of cryptocurrency.
It’s Easy to Convert Your Cryptocurrency Back Into Real Money
You may worry that if you purchase cryptocurrency, you will have trouble selling it back for real money. This is a valid concern—there are certainly risks to its use as a currency.
However, there are some simple ways to convert your cryptocurrency back into fiat currency. The easiest way is to sell it on an exchange using the earlier order books. In this way, you can set the price you are willing to sell your cryptocurrency and wait for someone to buy it.
You can also use the cryptocurrency itself instead of fiat currencies in making purchases from retailers who accept them as payment (and there are more and more of these every day). These methods of converting cryptocurrencies into fiat currencies make them simple and easy to use as well as secure alternatives to traditional fiat currencies.
Blockchain Technology Is Revolutionary
Blockchain technology is a distributed ledger that is transparent, immutable, and secure. It is the foundation of cryptocurrencies.
It has been likened to a spreadsheet that’s been copied thousands of times across a network of computers. Now, imagine that this network is designed to update this spreadsheet regularly, and you have a basic understanding of blockchain technology.
Whatever piece of information is recorded in one place on Blockchain can be seen in every other place since it’s recorded simultaneously, creating an unbroken chain that’s public and easy to audit. Blockchain also ensures transactions are completed accurately and efficiently while being completely transparent with identities remaining anonymous — nobody needs to know who bought what from whom or how much anything costs unless they want the world to know.
This revolutionary technology allows for information verification without intermediaries (like banks). It offers complete transparency because anyone can see all records at any time, so there’s no longer any way for someone to easily cheat the system for their own benefit because everything is out there in black-and-white for everyone else to see as well.
This Is a Great Time to Get Started With Cryptocurrency
This might seem like an odd time to get into crypto, with all the hype around it fading, but you should know that blockchain is still in its early stages. The technology hasn’t yet found many uses beyond cryptocurrencies and has seen a lot of resistance and skepticism.
However, it’s finally taking off as institutions, and large companies start to embrace the technology. This means that now is a great time to invest and explore the opportunities of blockchain while they are still cheap! In addition, this development will make cryptocurrencies more mainstream—another reason why it’s a good idea to get in on crypto now.
There isn’t much space left for growth in established industries such as tech or finance, but cryptocurrencies are still relatively new and unknown—and there’s plenty of room for them to grow!
Conclusion
Getting started with cryptocurrencies is easier than people realize. Since cryptocurrencies are still in their early days, the list of things you can do with them is short. But that does not mean there are no opportunities for investors. Here, then, are some basics on how to buy cryptocurrency:
If you want to buy cryptocurrency with a credit card, all you need is your card and a free account on any platform (Cointree, for example). Once you have these items ready and created, follow the prompts to find out how much Bitcoin or Bitcoin Cash (the only two cryptocurrencies available using a credit card) you can get and at what price. Make sure to read the fine print because most platforms will charge fees over 5% depending on your location and the payment processor they use.
Transferring funds from your bank account into an exchange takes longer than paying with a credit/debit card but allows you access to more coins other than Bitcoin/Bitcoin Cash. It may take about 3-5 business days for the funds to clear. But that shouldn’t stop you from making a solid investment.
