How to Invest in Cryptocurrency: A Guide for Beginners

Are you tired of trading your time for money in a corporate job? Do you wish that you could find some way to escape the daily 9-to-5 grind? If so, then you need to consider investing. This is the best way to start making your money work for you, allowing you to build wealth without trading your life away in a typical job.

In this article, we’ll teach you how to invest in cryptocurrency. While cryptocurrency is one of the more volatile markets that you could put your money in, the added risk means that you could get rich literally overnight.

What is Cryptocurrency?

Before one can invest in cryptocurrency, one needs to have a solid understanding of what exactly cryptocurrency is. It’s a complicated concept, so don’t worry if it takes a little bit of research for you to understand it.

A cryptocurrency is a form of exchange, just like any other currency in the world. However, there are two primary characteristics of cryptocurrency that separate it away from the rest of the barter systems out there.

The first such characteristic is that cryptocurrency is encrypted. In order to gain access to cryptocurrency, you need to have a digital key. This digital key is what allows you to own cryptocurrency. Whereas, with the United States dollar of the EU’s euro, all you have to do is hold the physical piece of paper in order to own the currency. No paper-based form of cryptocurrency exists — it is entirely digital.

The second such characteristic is that cryptocurrency is decentralized. It is not regulated by any government. That means that the Federal Reserve can’t print more of it and put more money into circulation. This is what makes cryptocurrency so volatile.

Image Credit: Microsiervos via Flickr CC 2.0 – Bitcoin: Crypto Imperator

How to Invest in Cryptocurrency

To invest in cryptocurrency, you will need to sign up at a cryptocurrency exchange. There, you can purchase a given cryptocurrency (like bitcoin, litecoin, ripple, or the many other options on the market) at the current exchange rate.

Once you have purchased the cryptocurrency, it will be stored in a digital wallet. This is essentially a software service that you can think of as a bank, which houses your cryptocurrency ownership. Some exchanges will come with digital wallet services built-in.

If you don’t want to take the time to research cryptocurrency, then you can choose to deposit your money with an investment service and allow them to make decisions with your investment portfolio. Just make sure to research the service online before committing to them (e.g. by reading this Diamonds Capital review before depositing any money with Diamonds Capital).

Investing in Cryptocurrency is Risky

Remember that cryptocurrency investment is inherently risky. The decentralized nature of cryptocurrency means that if the value plummets, there isn’t going to be any government support to prop it up. If you’re ready and willing to accept that risk, however, then the rewards from cryptocurrency can be tremendous.

For more advice on how to invest in cryptocurrency and build your financial wealth, be sure to check out the rest of the articles on the website!