Although cryptocurrency is now famous in the market and all new, experienced people are investing in this digital currency but for beginner’s, it is very tough to decide that in which currency to invest. In the initial stage, a beginner may feel like they have lost in the sea of unknowns. Therefore for beginner’s, it is very much important to know the every in and out before the investment. You must have heard about “Bitcoin” & “Altcoin”. Back in 2009 Bitcoin appeared in the market. It was next big Cryptocurrency of that time. Cryptocurrency Nowadays has become a global phenomenon. The announcement made by Satoshi in 2008 about “Bitcoin” in which he said that it is a Peer-to-Peer Electronic Cash System.“ His goal was to invent something which many people fail to invest in digital market i:e digital cash.
Background of Crypto Currency:
When Satoshi saw that the entire centralized attempt was failed, Satoshi tried to build all new digital cash system without the central entity. Due to this decision cryptocurrency has taken birth. For beginner’s, it is important to know that for the transaction of digital cash you need payment network such as account, balance, etc. Usually, this is done by the centralized server but in a decentralized network you don’t have the server.
Important points to ponder upon before investing in Cryptocurrency:
- High-risk Investment:
As per the experts they are suggesting the beginners not to invest in cryptocurrency, other investors how have earned a good profit from Bitcoin says that it is a good source of earning. Overall it is very uncertain and risky.
- Earn with patience:
However you will find the lucrative stories of investors whose investment in Bitcoin was the right decision and they have earned it worth, but at the same time, they have mentioned that patience is required for same as you will not taste the success overnight. So, invest in cryptocurrency only when you can wait patiently for the good return.
- Crypto Currency should not be your main investment:
As it is very volatile in nature and risky to invest so make sure that it should never be your main investment. Always invest a small portion of your saving as your investment and keep rest of the amount as lower risk investment.
- Importance of digital wallet:
The very first step before buying cryptocurrency is to buy a digital wallet. Your wallet is a place where you store public and private keys that prove ownership of cryptocurrency.
- Selecting a Cryptocurrency:
Before selecting your coin you must be familiar with few things such as Security of the coin, risk of hacking the coin, you also need to know the history of coin and demand of your chosen currency in the market.
- Join Exchange:
Once you are ready with your wallet and have chosen in which currency to invest, now its turn to join an exchange. This is a place where you will buy and sell your currency. But make sure that few exchanges are limited to certain countries so if you are eligible with all the terms and condition of making payments then only join that exchange.
- Security of investment:
The risk of hacking is really high so, making sure that your investment is secure enough to bring return is also a big task. For beginners, it is very much important to make sure that the exchange they are selecting is trustworthy and secure in terms of hacking and other malfunctioning’s which happens in the world of digital currency.
- Ask Questions:
Never feel hesitant to ask questions related to the investments you are making. A broker who deals in Crypto Currency might answer all your questions and help you to trade successfully minimizing the risks. Before making any investments, clear all your doubts related to cryptocurrency and make sure that you have a thorough understanding of the subject so that you can be an independent investor in the future.
This article is a beginner’s guide to Crypto Currency investment and if a novice trader goes through the topics mentioned above, he/she can be a successful Crypto Currency trader.