Cryptocurrencies are all the rage right now. People are making money hand over fist, and it seems like everyone is getting in on the action. So if you’re wondering how to start buying crypto, this article will guide you through choosing one that’s right for you and your needs.
Learn about the most popular cryptocurrencies
To get started, you need to select a cryptocurrency. The most popular choice is Bitcoin (BTC). A good place to learn about it is on the Bitcoin website. Bitcoin can be used as a store of value and is decentralized, meaning that no central authorities control its value or supply.
In contrast to traditional currencies like dollars or euros, which are issued by central banks and backed by governments, BTC has a limited supply (21 million) and no central authority backing it up.
As per SoFi experts, “Invest in a secure platform that protects your holdings against fraud and theft.”
Choose a cryptocurrency based on its characteristics
When choosing a cryptocurrency, the first thing to do is to determine what characteristics you will be looking for in a cryptocurrency. Once you know your criteria, it is much easier to narrow down your search. For example:
- There may be better choices than Bitcoin (BTC) if speed is important to you. The average transaction time for Bitcoin is about ten minutes and can take up to an hour during peak periods.
- If anonymity and privacy are important factors for you, then Monero (XMR) would be a better choice than Bitcoin or Ethereum because your transactions cannot be traced or linked back to you by anyone except the recipient of funds in XMR transactions (and they don’t have access unless they choose otherwise).
Consider other digital currencies and altcoins
Another option is to buy digital currencies other than Bitcoin. These are known as altcoins, and hundreds are out there. Some have a large market cap, but many do not. Consider buying an altcoin if you think it will increase in value or if you just like investing in something different from Bitcoin.
Determine whether you should buy or mine your cryptocurrency
A cryptocurrency is a digital asset that can be exchanged for goods or services. Cryptocurrencies are also called virtual currencies because they aren’t printed and exist only in digital form. They may also be called “crypto-assets” or “digital money.”
Since cryptocurrencies are very new, it can be difficult to determine the best options for choosing a cryptocurrency. The following steps will help you make an informed decision about which currency is right for you:
- Determine whether you should buy or mine your cryptocurrency.
- Choose whether you want to purchase through an exchange or directly from another person (peer-to-peer).
- Find out how many coins have been mined so far, and how many more will be mined in the future.
You have to be careful when you choose cryptocurrency. You should do your research and ensure it will benefit you in the long run. So, it’s better to think wisely and take your time to decide before jumping in.