How to start investing in cryptocurrency: A beginner's guide.

Not financial advise!

How to start investing in cryptocurrency: a beginner's guide

There’s an old saying that you should never invest in something you don’t understand, and it’s especially true when it comes to cryptocurrency investing. Bitcoin and the like are volatile and unpredictable, meaning if you don’t know how these investment vehicles work, there’s plenty of room to lose money on them—and fast. To ensure you’re making smart choices about your crypto investments, read this beginner’s guide on how to start investing in cryptocurrency and gain insight into how the market works before putting your money at risk.

What is Cryptocurrency?

Cryptocurrency, short for virtual currency, is simply any form of digital currency that uses cryptography. Think Bitcoin, Litecoin, Ethereum and so on. Alot of (but not all) cryptocurrencies are decentralized, meaning they operate independently of any government or centralized banking authority. Cryptocurrencies aren't printed like traditional currencies; instead, they're mined by powerful computers connected to the internet. As the amount of coins you have increases, so does your proof-of-work ranking within the network -- making it difficult (or nearly impossible) for others to surpass you with newer machines and faster internet speeds.

Unlike most currencies controlled by a single government entity and set values against each other (such as the U.S.)

Where can I buy Cryptocurrency?

With bitcoin and other cryptocurrencies on the rise, now is the perfect time to invest. The problem is that many people don't know where they can buy Bitcoin or other cryptocurrencies. Here are some of the ways you can purchase your first bitcoin.

Visit Coinbase - coinbase offers great security features, such as purchasing limits, two-factor authentication and more. There also are other platforms like crypto.com or KuCoin, which is an Korean exchange that I always recommend due to best fees.

Where should I store my cryptocurrency?

There are many factors that you need to take into account when deciding on the right wallet for your cryptocurrency. The most important thing is safety, which means making sure that if someone hacks your device or compromises your security and gets access to your password, they cannot get at your coins without physical access to them. Wallets range from online wallets such as Coinbase and Blockchain to hardware wallets like Ledger Wallet S, Trezor Wallet and KeepKey. Most online wallets will require two-factor authentication such as Google Authenticator (but not all). Hardware wallets require additional steps such as setting up a PIN code, etc., but these will keep your coins offline where it’s safer.

Is it safe to invest in cryptocurrency?

It is safe for investors to invest their money into cryptocurrencies, as long as they do so with patience and caution. With that said, it is important for the investor to research the opportunities he or she wants to take part in. This will help the investor understand the history of any given cryptocurrency and the degree of risk that comes with it. The more information one has on a particular currency, the better decision he or she can make when buying into it. It's also advisable for potential investors to set investment caps on how much they are willing to lose if something goes wrong.

What Are Some Common Crypto Scams to Watch Out For?

First and foremost, don't invest money you're not willing to lose. At the end of the day, cryptocurrency is still largely unregulated and volatile, so there is always a chance that whatever you invest could be lost. Plus, there are some new cryptocurrencies that are legitimate scams looking for people with gullible tendencies. There are quite a few different types of scams out there today; ICO (initial coin offering) fraud, hackers who take advantage of lax security measures or wallets being vulnerable to attacks, insider trading, ponzi schemes (in which early investors profit off of other people's investments), pump-and-dump schemes (in which prices are artificially inflated before then sold) and even counterparty risk (when the seller doesn't actually have any currency).

Conclusion - Why you should learn about cryptocurrency now

Blockchain technology is set to disrupt many industries. Crypto is taking the world by storm, as evidenced by Bitcoin skyrocketing beyond $10,000 USD per coin. If you don't want to miss out on this investment opportunity and are just getting started with crypto, here are some things you should know.

-Cryptocurrency is volatile and risky but so is traditional stock market investing.

-Start small with a a few bucks; track your investments; don't try trading with money you're not willing to lose.

-If you still don't know where to start but want to crush the market click here!

Not financial Advise!