Cryptocurrency Investment for Beginners 

 

Cryptocurrency may be volatile, but it’s also soaring in value, and many people are hoping to cash in on the trend. Bitcoin and Ethereum aren’t the only cryptocurrencies seeing periodic dips and subsequent recoveries in value.

 

Even if seasoned investors have been making crypto market bets for years, how do people join in on the action if they’re starting? This article will review some fundamentals to help readers start with bitcoin investment and avoid common pitfalls.

What is the purpose of cryptocurrency investments?

By passing traditional intermediaries like banks and governments, cryptocurrency is traded directly between users on the blockchain. In the digital realm, the absence of a marshal makes it feel like the Wild West.

 

To illustrate, think of the last time you were on vacation and hired a neighbourhood child to take care of your grass or dog. Cash was probably used for the transaction. No trip to the bank was required on your part to complete the transaction.

 

The process of exchanging digital currency is similar. No institution, like a central bank or government, can influence their creation, value, or trade. Because of this, the value of cryptocurrencies is determined solely by the demand and supply on the market. Indeed, it is a bit bizarre.

Growing Your Cryptocurrency Investment

Diversifying crypto holdings is a simple approach to lower exposure to market fluctuations and, in certain situations, boost your earnings. Diversification, or asset allocation, is used in the financial markets to describe this practice. The goal is to diversify your holdings so that you suffer less severe losses in a market slump.

 

Simply put, copy trading is a method of investing in which a trader mirrors the actions of a more experienced trader using the software. It is a solution if customers want to invest in cryptocurrencies but don’t have the time to monitor the market constantly.

 

The percentage of portfolio customers entrust to a certain trader can be decided once they’ve chosen a trader. It is frequently expressed as a percentage of an account balance. 

 

If customers have total investment capital of $1,000, they may duplicate trade with one trader for 10% of their portfolio and another for the remaining 90%. So, if their traders are successful, they may always switch them out or give them extra money. Trade Wise can help you avoid some pitfalls if you want to find the greatest services.

What are the types of cryptocurrency investments?

Despite Bitcoin’s notoriety as the first publicly available cryptocurrency, it is by no means the only one, and there are numerous others.

Bitcoin

In the world of cryptocurrencies, Bitcoin will always be the pioneer and undisputed leader. At the time of writing, the world’s leading digital currency had a market valuation of over $125 billion, with a price per coin of over $7,305.

Ethereum

Ethereum, the digital token that inspired the ICO boom, ranks second on the ranking of cryptocurrencies by market valuation. Its market valuation is less than half of Bitcoin’s at $50 billion, and its token trades for roughly $500. At the time of this writing, there are slightly more than 100.7 million ETH tokens in circulation.

Ripple

After Bitcoin and Ethereum, the third largest cryptocurrency by market cap is the much-publicized Ripple. Each XRP coin is worth a fraction of the value of the top two digital currencies (and the one directly below it). At the time of this writing, one token costs a little over half a dollar. Contrarily, there is a large quantity of XRP in existence. More than 39 billion coins are now in use.

EOS

EOS, with a market cap of $7.83 billion and even more than 896 million tokens in existence, completes the top five.

Money in the form of Bitcoin Cash

Following a hard fork, a new cryptocurrency called Bitcoin Cash emerged. As of this writing, there are slightly over 17.2 million BCH in circulation, giving the digital currency a market valuation of around $14.5 billion at its current price of $843 per coin.

 

To learn more about cryptocurrency investing check out tradewise on Youtube here – https://www.youtube.com/c/TradeWise1