Getting Started with Crypto Investing

From the depths of obscurity to our back-pocket wallets, Cryptocurrency has transformed the way we save, spend and think about our money. Established after the 2008 global financial crisis, this incredible innovation has given the world an alternative to bank-controlled, government-monitored assets. Crypto was designed to be owned by the people, with its own peer-to-peer network (blockchain) to make safe online transactions free from fees or interference.

These days, anyone who’s anyone has heard about Cryptocurrency. But how does it work? What does it mean for the future of finance and can it be used in the same way as cash?

We are here to break down the lingo, explain what crypto is and show you how to invest in crypto.‍

What is Crypto?

Cryptocurrency is a digital currency. It is arranged into ‘coins’, for example, Bitcoin or Ethereum, and you can purchase them through an exchange. Each coin has its own value and unique behaviors. For example, each coin will have its own volatility index. This measures the rate at which the coin increases or decreases in value, potentially giving investors a huge profit (or loss) in a short space of time.

You can keep track of how your chosen cryptocurrency is performing by signing up to alerts or by manually keeping an eye on crypto behaviors, and choosing to buy and sell accordingly.

Once you become a crypto owner, you have several options open to you. You can use it as a way of building wealth through online trading. Or you can spend it as currency with a crypto-accepting retailer. You can also make payments to friends, even internationally, without fees and with total anonymity.‍

Why Do People Use Cryptocurrencies?

There are numerous reasons why increasing numbers are turning digital.

Some of these are:

• Rapidity. Crypto exchanges are almost instant. You can send someone crypto or make a purchase without delays. Bank transactions, on the other hand, can take days.
• Cost. A credit card transaction often costs money, as does an international bank transfer or PayPal withdrawal. Crypto payments often don’t cost you anything. If there are fees to pay (depending on the coin and the transaction) then they are minimal.
• People Power. In 2013, Cyprus faced an unprecedented banking crisis that meant thousands of citizens lost tremendous amounts of money. Cryptocurrency doesn’t allow this to happen. The government cannot touch your crypto. It is entirely decentralized.
• Anonymity. While blockchain transactions are coded for security, your name and address are not included in this data.
• Volatility. Crypto investors looking to make profits through trading can benefit from more volatile coins.

Which Crypto to Invest in?

At the time of writing, there are more than 13,500 cryptocurrencies in existence. Too many to list. However, some are more popular (and trusted) than others. Here are two examples.

Name: Bitcoin
Abbreviations: BTC
Founded: 2009
About: Bitcoin is one of the most popular and established coin available. You don’t have to buy ‘whole’ Bitcoins, but can purchase even a fraction of Bitcoin and see a return on your investment. Bitcoin uses un-rewritable code and a mining process that means there will only ever be 21 million Bitcoin maximum. The Bitcoin blockchain has never been hacked and is considered a safe and secure way to transact cryptocurrency. It is also not possible to ban Bitcoin or stop the blockchain network. Some of the most successful Bitcoin investors were those who jumped in early, now making millions from Bitcoin thanks to that initial risk.

Name: Ethereum
Abbreviations: ETH
Founded: 2014
About: After Bitcoin’s success, blockchain and crypto developers wanted to expand on the good work already done. They saw Bitcoin as having quite a narrow purpose and focus, with limited functionalities. They wanted to create a cryptocurrency that had more dynamic appeal to the financial industry. This is when Ethereum was created. Ethereum is currently in second place on the Market. Ethereum is an open-source, decentralized system. It is also a distributed computing platform which allows for the creation of smart contracts.ETH is used to make payments, and is recognized by many stores and retailers.

Of course, as we mentioned, there are thousands of cryptocurrencies to choose from. Receiving alerts about the latest crypto trends and coins can be a great way to try out new currencies while hedging your investments in safer ones.

How to Invest in Crypto

Investing in cryptocurrency is easier than you think. Exchanges are set up across the web to help support you change your fiat into your chosen crypto coin.

Step 1: Choose your coin. As we said, there are thousands out there, all with their own advantages and disadvantages. Bitcoin remains the most popular on the market, but that shouldn’t stop you from exploring other options too.

Step 2: Find an exchange for you. Again, you might want to go for the most tried and tested exchange if you are new to investing. Coinbase is one of the most reputable and regulated exchanges on the market. If you’d like to explore a range of exchanges, click here.

Step 3: Check the Ts & Cs. Terms and conditions to check might include fees, especially if you’re planning on performing regular trading activities, as well as withdrawal processes and the simplicity of converting back to fiat if you choose to do so.

Step 4: Monitor. You need to make sure your money is performing in the way you expect. Setting up crypto alerts can help you to do this. Knowing when and how to make a trade is paramount to success, and alerts can help facilitate that so that you can sit back, relax and watch your money grow.

What Next?

We know you have more questions, such as, how do alerts work? Does speed matter in crypto exchange and how do you know if your coin is performing as expected? We have the answers for you. JustAlerts provides a conversational explanation of each crypto alert so that, even if you’re brand new to crypto investing, you will feel on top of your game from the outset.