Today, over 100 million people around the world use cryptocurrencies. This is an exciting type of currency to emerge, considering it’s completely digital.
You might’ve heard about how Bitcoin’s value has skyrocketed. And you’re thinking you need to get in on this action before it’s too late. If you’re smart, you can get a nice little nest egg, after all!
Are you interested in investing in cryptocurrency? Then read on for a quick guide!
Choose an Exchange
You can’t buy or sell crypto without first choosing an exchange. Essentially, these are like brokers for traditional stocks.
Do your research and find a reputable exchange to deal with. Then, you can make an account. You’ll need to submit your personal ID and bank account details to get a valid account.
Store Your Crypto in a Wallet
When you purchase cryptos, the exchange will usually let you hold them there. However, no matter how secure the site is, your crypto is just one step away from a hacker taking it.
So it’s advised that you use a crypto wallet. There are 2 types: software and hardware.
For smaller amounts, software wallets are fine. But for larger amounts, you might want to go with hardware wallets instead. These are physical devices that look like USB sticks, which makes it virtually impossible for hackers or even thieves to access your crypto.
Invest in Several Cryptos
You know how the saying goes: don’t put all your eggs in one basket. While Bitcoin seems to be doing immensely well and is a giant in the crypto world, it’s always a wise decision to expand your portfolio.
Now, what’s great is there are over 4,000 types of cryptocurrencies out there. Of course, there are many that aren’t worth your time. But still, there are still other excellent choices to invest in, other than Bitcoin.
So one of our best investing tips is to dabble a little in several cryptos. Some others to note include Litecoin, Ethereum, Ripple, and Cardano. You might also want to check out stable coins like META 1.
Be Aware of Tax Implications
Cryptocurrencies are considered assets. This means that if you sell your crypto and are in the green after that, you’ll have to pay capital gains tax on that sale.
The world of taxes can already be confusing enough, even without cryptocurrencies involved. So many sure you have a chat with your accountant before investing. That way, you won’t have a nasty tax surprise.
Start Investing in Cryptocurrency
Investing in cryptocurrency might seem tough. But if you do your research, are smart about your decisions, and are patient, you can see a small investment grow in the near future.
So instead of treating yourself to Starbucks daily, try giving it up for a month or two, and use that money on crypto investments instead. You just might get lucky!
Want to learn more ways to invest your money? Then find more financial tips on our blog now!