Investing in Cryptocurrency
People who invested in Bitcoin 10 – 11 years ago could be sitting on millions of pounds worth of Bitcoin today. As a new form of digital cash, the cryptocurrency markets have been known to suddenly boom, and even rather small investments have been lucrative.
The reality is though, cryptocurrency prices go up as rapidly as they come down – it’s a volatile asset class – therefore it could be worth a lot less tomorrow than one buys it for today.
Trading or investing in cryptocurrency requires the same mindset and logic that should be applied to any investment and a diligent approach will likely pay off.
Like with all investments there is a level of risk and market volatility to consider and seasoned crypto miners and traders have warned this is not a get rich quick scheme.
That said, before buying Cryptocurrency it is important to do plenty of research, ensure you are buying from a reputable source and don’t complicate it, ensure you apply a simple strategy.
Getting started buying cryptocurrency
Investing or trading in cryptocurrency can be quite daunting when starting out and there are several ways to go about it. Plus, there are different types of exchanges to be considered – Centralized Exchange and Decentralised – depending on your needs.
The most common type is the centralised exchange with private companies that offer platforms to trade such as Coinrule.
Coinrule lets you automate your investments across platforms to protect your funds and catch the next market opportunity. They offer Automated Trading for Cryptocurrency Exchanges like Binance, Binance Futures, Coinbase Pro, Kraken and many others.
Research a reputable exchange
When looking at an exchange, it’s important to analyse the efficiency of its liquidity, hot wallet, transaction fees versus earnings, regulatory compliance, instant access to your funds and the crypto market, and its capacity to match orders almost instantly.
Cryptocurrency market never sleeps – be prepared and organised
Trading crypto does have the possibility of driving one mad – it would be exhausting to monitor the market every second of the day. Here are a few things to think about at the onset.
- Choose a simple strategy and be patient – once you have a strategy, give it a chance to work and keep researching until you’ve mastered it.
- Find a service that helps you automate your strategy – using an automation tool.
- Spreading your risk is wise – in such a volatile sector – by buying multiple assets, rather than one. Distribute your risk and build a portfolio.
- Protect against a hack – even with a reputable exchange, this can still happen. Mobile hardware wallet, Tap.Global, regularly comes up top for security, Coinrule and CryptoTrader.Tax as also other options to explore.
- Find a reputable group to ask questions too – there are many passionate, savvy crypto traders who genuinely want to build a community to help.