It wasn’t too long ago that the idea of investing in crypto was met with apprehension and uncertainty. Whilst that might be the case to a certain extent today, there’s definitely more interest in crypto in 2022.
Cryptocurrency is a big market, with an estimated $1.06 trillion valued as of August 1st, 2022. With approximately $112 billion being traded in cryptocurrency per day, this is no longer an unfeasible investment opportunity.
In this guide, you’ll understand what cryptocurrency is and what the benefits are as an investment opportunity. You’ll also get several easy tips to start buying cryptocurrency so that you can navigate this market with ease and more importantly, confidence!
What Is Cryptocurrency?
A cryptocurrency or crypto for short is a digital currency. Designed to work as a medium of exchange, it’s not policed by any one party or governing body. This is referred to as a decentralized currency.
The point of cryptocurrency is to offer a potentially new age of currency that isn’t controlled and instead is influenced by everyday investors. There are different types of cryptocurrencies that make up the market and this number is only growing as the years go by.
Some of the most popular digital currencies on the market are Bitcoin, Ethereum, Tether, and XRP. While not all cryptocurrencies are currently active, it does seem to be an investment opportunity that more individuals and organizations for that matter, are taking seriously.
The Benefits Of Cryptocurrency As An Investment
With any investment, there’s a risk but with that risk comes a level of opportunity for returns. With safety and security being paramount when investing your money, the basic rule of investing is to only invest what you can afford to lose. With that said, let’s look at some of the benefits that come with cryptocurrencies as an investment.
Direct Control Over The Investment
With cryptocurrency, you have direct control over your investment, rather than having any control from outside sources. It means that you decide on how much you want to invest and when you want to invest it.
You can have multiple pots of cryptocurrency and you can buy or sell whenever you feel is the right time. This kind of freedom doesn’t really exist with a lot of investment opportunities.
Easy Access To An Assortment Of Investment Opportunities
With cryptocurrencies, there are a variety of platforms where you can purchase cryptocurrencies. This can be done via a desktop computer or you can also download an app from one of the many popular platforms like Ziglu and Moonpay.
No Political Control Or Social Influence
With no outside control other than how the markets fluctuate, there’s no political control or necessarily any social influence. Cryptocurrency is universal, meaning what you get is the same as what someone else would get in Europe or Australia.
It’s A 24/7 Marketplace
As with a lot of investment opportunities, a lot of processes can be during office hours only. However, with cryptocurrency, it’s digital and online – that means it’s open 24/7. So whether you’re looking to buy crypto with your morning coffee, or you prefer to sell your Bitcoin during your commute back from work, it’s flexible and works around your schedule.
7 Easy Tips For Buying Cryptocurrency In 2022
If buying cryptocurrency is something you like the idea of, then it’s always good to do your research and get tips from those who already have experience in investing. With that in mind, we’ve put together seven easy tips for buying cryptocurrency in 2022 so you can make your first experience of crypto, the best it can be.
1. Look For The Right Platform On How To Buy Ethereum And Other Cryptocurrencies
There are plenty of platforms to choose from when it comes to buying crypto like Ethereum, a crypto that in itself is a decentralized open-source blockchain.
However, there are some platforms that are more reputable than others. With new ones popping up left, right, and center, it’s also wise to be cautious about who you trust your investments with.
Moonpay is a great choice if you’re looking for a starting point. It’s also very easy when learning how to buy Ethereum on Moonpay because it doesn’t involve any complex sign-ups. You simply create an account, deposit your funds and buy your cryptocurrency instantly.
2. Know How Much You’d Like To Start Investing And Create A Separate Savings Pot
As an investment opportunity, it’s necessary to think about how much you’d like to start investing before you go spending your money. It’s very easy to just spend with not care as to how much you’re spending.
By creating a separate savings pot, you can enjoy investing in a safe and secure way. If you’re dipping into your funds from a joint account or what is meant for your expenses and outgoings each month, you may end up spending more than you can afford.
Make sure to decide on how much you have to invest, to begin with, and perhaps a guideline of how much you can afford to put towards further investments on a monthly basis.
3. Create Your Online Accounts And Deposit Money In Advance
Before you invest, you’ll need to create your online account with the various marketplace platforms available. Of course, you could have multiple digital wallets but you may want to keep your investments in one place.
By having multiple accounts, you put yourself more at risk of being hacked but also it spreads your investment opportunities more thinly. By having it all in one place, you can put bigger chunks of money towards buying more crypto and having more value in crypto than you would do if you had it in different wallets on different platforms.
4. Keep Up To Date With The Latest Information And Trends On The Market
When it comes to cryptocurrency, it’s still well within its infancy as an investment opportunity. It’s something that you should be aware of when it comes to investing and timing your investment decisions. As an investment type, cryptocurrency is a long-term investment so may not be suited for everyone.
Alternatively, it can be a great way to diversify your portfolio and to have something that will keep you on your toes when it comes to investing in different coins depending on their performance and what’s trending on the market during that time.
5. Do Your Research And Expand Your Cryptocurrency Choices
When it comes to crypto, make sure that you’ve done your research. It’s just like any investment opportunity that without basic knowledge of how it all works, you’re essentially navigating it blindly. That means you’re more likely to lose money from carelessness, never mind having an unfortunate streak of bad luck.
There are so many valuable online resources to take advantage of and it’s something that you should certainly be utilizing before you begin your cryptocurrency journey.
Don’t just put your eggs in one basket either. When it comes to your cryptocurrency purchases, make sure you’re expanding your choice beyond just one or two coins. Diversifying your coin choice is going to help spread the risk evenly!
6. Remember That Crypto Is Often A Long-game Investment
As mentioned already, it’s important to be aware that crypto is a long-game investment opportunity. There’s no point in putting in some money and then taking it out once it’s gone up by a couple of dollars in value.
Not every investor is suited to this type of investment but as always, it’s good to dip your toes into new investment ventures that you’ve not explored to at least give it a go. You never know, you could surprise yourself.
7. Know When The Time Is Right To Sell
Understanding when the right time to sell is important and that knowledge will only come with more experience on the market.
By spending more time investing and learning about crypto, the more information you’ll have when it comes to recognizing those moments in the market where it’s time to cash in your profits.
That’s why researching is important, as well as staying signed up to popular online resources and forums that know the market inside and out. It can help to see relevant forecasts and predictions made by the experts to help you get the most value when selling.
Cryptocurrency Is Worth Investing In For 2022
Cryptocurrency in 2022 is the right time to spend your money and buy some digital currency. If you haven’t explored this investment opportunity already then it’s well worth giving it a go. Who knows what you might get from it in the long term? Even if it doesn’t work for you the first time around, it’s good to try again to widen your portfolio and provide a potential windfall in the future.
Latest posts by Ella Marcotte (see all)
- SEO Expert Shares Tips To Improve Your Rankings - September 28, 2022
- Hire Professional Software Developers For Cost-efficient Services - September 28, 2022
- 8 Best Audio Translation Software In 2022 - September 28, 2022