Cryptocurrencies emerged over the last decade with the birth of Bitcoin. Today, investing in cryptocurrencies such as Bitcoin or Ethereum attracts an increasing number of citizens in the U.S. and across the world. Yet many novice or experienced investors may wonder where to start. Here’s a brief guide for figuring out how to invest in cryptocurrency.
How to Invest in Cryptocurrency in 2019
In the case of a traditional asset-backed up investment, investors interested in trading cryptos should follow the market precisely; they further need to monitor price changes accordingly. Another factor to consider deals with regulations. The countries or states you currently live in may alter your cryptos investment scope.
Cryptocurrencies to Invest In
Cryptocurrencies are extremely volatile yet are becoming a popular “asset” type investment. Despite the Bitcoin crash last year, the market capitalization of the top 100 cryptos has risen. With a market cap of $138 billion at the beginning of 2019, the future looks bright for cryptos according to Smart Ethereum. So apart from Bitcoin and Ethereum, are there any other cryptocurrencies worth trading?
The top 100 cryptocurrencies by market capitalization according to CoinMarketCap.com Bitcoin is the leading crypto in market cap and price, which has fallen to $4,000 early 2019. Ethereum comes next with a steady market cap and price. You may have not heard of XRP or Bitcoin Cash, which represent an interesting investment option. EOS, Litecoin, and Stellar are alternative coins you may wish to trade, too. Remember that one of the safest investment strategies is diversification.
Should I Follow Crypto Regulations?
Savvy investors should follow crypto regulations in their respective countries. In the U.S., crypto assets are regulated as follows:
- As a property by the IRS (Internal Revenue Service)
- As money by the Department of Treasury’s Financial Crimes Enforcement Network (Fincen)
- As commodities by the Commodity Futures Trading Commission (CFTC)
- As securities by the Securities and Exchange Commission (SEC)
Bitcoin is almost a global currency. However, in the U.S., California, Colorado, Texas, New Hampshire, and New York appear as the most “Bitcoin-friendly” states.
How to Make a Cryptocurrency Loan
Once you are updated with top crypto news and understand which cryptos are worth investing in, you may start trading cryptos. Below is a list of the top crypto exchanges platforms where you can either buy or sell Bitcoins or even trade altcoins such as Ethereum or XRP.
Have you also thought about cryptocurrency loans? Cryptocurrency loan platforms help solve the liquidity problem and connect borrowers to lenders. For example, popular platforms such as BeeLend, BitBond, and BlockFi offer crypto loans.
What are Crypto Wallets and Why You Should Use One
Remember to download a crypto wallet before you start trading. Crypto wallets are digital wallets used to store crypto data and keep track of crypto payments across various exchanges and platforms. Top crypto wallets are Jaxx, Exodus, Armory, and Tresor. Before making any investment decision, you should stay safe and consult helpful information to invest safely in cryptos.
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