Investing Basics for Cryptocurrency
Digital assets have been growing at an extremely fast pace in recent years. People with all levels of finances are looking to grow their portfolios by investing in cryptocurrency. Before throwing a chunk of money into this space you should do some homework. The more you know about this type of investment, the better suited you will be at growing profits. Watching social media posts on TikTok or Instagram is not the best resource. While there have been huge windfalls, investing in cryptocurrency should not be considered a “get rich quick” venture. There’s always a risk.
What’s the difference between Cryptocurrency?
Nearly 7,000 cryptocurrencies are available today. It’s come a long way since the first Bitcoin was created by Dr. Craig Wright who wrote the Bitcoin white paper under the pseudonym, Satoshi Nakamoto. Unlike traditional forms of investing like stocks and bonds, cryptocurrencies are designed to be a way of storing and exchanging value in the form of digital assets like investing in cryptocurrency.
The number of institutions that accept crypto as a form of payment is growing at a lightning pace. You can buy everything from burgers to cars using cryptocurrencies. Sending payments to someone in a flash for a fraction of a cent is at the tip of your fingers. Another difference is you have access to your funds at all times without any time restrictions on how long you must leave your investment in the cryptocurrency.
Decide which type of cryptocurrency is best for your investment. Many are designed to fulfill a purpose while others are simply designed for fun. Knowing the difference is important while keeping in mind market performance. Make sure you choose a reliable and trusted exchange such as Fabriik Exchange. Regardless of which exchange you choose, you will need to verify your identity as part of the Anti-Money Laundering regulations that are in place. Much like traditional investments you can purchase or sell your digital assets through various types of market, limit, and stop orders.
Cryptocurrencies are digital assets that are intangible. You don’t actually receive them in the form of hard tokens or coins. That said, you need to have a place to store them. It is highly recommended that you do not store them in exchange. Instead, keep them in a digital wallet. Money Button is a great choice with its low transaction fees and the ability to make a payment with a single swipe on your smartphone. The most secure way to store your digital assets is to take them offline into a hard wallet storage device. The only real downside to this method is the risk of losing the device so keep it in a secure location. If you lose the device, you lose the cryptocurrency.
“If you invest in cryptocurrencies, you should always protect your cryptocurrency passphrases and wallet with the most reliable security measures. This includes storing your digital assets on a dedicated hardware wallet, enabling two-factor authentication, and keeping your system up-to-date with software patches. If you don’t take these precautions, you run the risk of losing all of your cryptocurrencies.”
Clay Epstein, Chief Information Security Officer, Fabriik