A lot of investors are looking to diversify their portfolios by investing in crypto. The main reason for that is the possibility of higher returns, especially since most cryptocurrencies are deemed volatile. In case you’re a beginner in this field, then it’s important to take the time and learn more about cryptocurrencies, blockchain technology, and online trading sites. In this guide, we cover essential information to help you make your first crypto investment.
What is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that is used as a medium to transfer money on the internet. Bitcoin was the first cryptocurrency that was launched in 2009. Today, the competition is increasing as a lot of companies are developing their own digital currencies, and currently, there are over 4000 cryptocurrencies available on the crypto market. Even though there are some differences that make each cryptocurrency unique, what they have in common is the blockchain technology.
This underlying technology is what made cryptocurrencies successful, and it is one of the main reasons why the crypto market is thriving today. Blockchain technology is a decentralized and highly secure system of recording information that was created to enable crypto transactions without the supervision or control of a central institution. Some of the benefits of blockchain technology are irreversible transactions, short processing time, low transaction costs, anonymity, and other perks. Plus, by design, cryptocurrencies are deflationary currencies, and their supply is finite.
Reliable Online Trading Sites
Before opening an account on an online trading site, you should take some time and research the cryptocurrency. A good starting point is to read the white paper of the cryptocurrency because you need to find out more about how it operates and what are the main advantages of using it. For example, Bitcoin is known as a safe-haven asset because it is widely used and is the largest cryptocurrency by market cap, while its total supply is restricted to 21 million.
When you have a good idea about the group consist you want to include in your portfolio, then you can find a reputable and trustworthy crypto exchange site that suits your preferences and main financial goals. A reliable platform that compares different exchange sites is https://buyshares.co.uk/cryptocurrency/exchanges/.
The detailed review includes top crypto exchange UK platforms, their main features, payment methods that are available on the site, commission fees, withdrawal fees, among other relevant information that will help you make your decision.
It doesn’t matter whether you’re looking to make long-term or short-term investments. Choosing the right and safe storage option for your cryptocurrencies is a vital step as a new investor. You can choose from different crypto wallets, including online, mobile, desktop, and hardware wallet. A suitable wallet for online trading is the web wallet because you can access the funds from a web browser.
But make sure to have a good understanding of how your private and public keys are stored. They can be more vulnerable when they are stored on third-party servers. Otherwise, mobile, desktop and hardware wallet are considered safer options, but it is more convenient to use a hot wallet when it comes to online trading such as web and mobile wallet.
It is also important to learn as much as you can about the crypto market and to keep up with the latest trends and news. For this purpose, it is beneficial to choose a platform that has a mobile app because you can easily access your account from your smartphone and make changes according to the latest developments in the market.
Also, make sure to learn more about trading and pick a strategy that works for your budget and for your portfolio. One good example is the Elliott Wave Theory , which is based on long-term price patterns and repetitive patterns to predict future price movement.0