Cryptocurrencies have only come into popular media in recent years, so there's much that is still misunderstood. Their premise is simple, yet much of the information surrounding them can be confusing. For someone looking to get started in buying and selling cryptocurrencies, it's important to have a thorough understanding of the concepts and terms that come with the digital coin.
Here is a quick guide on how to buy and sell cryptocurrencies for anyone looking to get started fast. It's important to note that, much like stocks, cryptocurrencies can be volatile and you could end up losing money if you invest at the wrong time. Play it smart and only invest when you know growth is just around the corner for the coin.
Buy Low Sell High
The first and most basic tip you can receive about buying and selling cryptocurrencies is that to profit, you need to buy when the coin is cheap and sell when it's high. The best example of this comes from the success stories surrounding Bitcoin. Many people became millionaires by purchasing Bitcoin when it was $7 per coin and selling it at today's rates of over $50,000 per coin.
What separates cryptocurrencies from your standard stocks is that a cryptocurrency can be earned without spending any money. With stocks, you're limited to buying, selling, and trading. With cryptocurrency, users can mine for them. This is the process of solving complex algorithms and unlocking the coin. Once you've mined the coin, it's yours and enters into the market, affecting the price.
Finding the Current Exchange Rate
So when is the best time to buy cryptocurrency? The lower in price, the better! But, you have to have a good idea that growth is in the future. There are hundreds of different coins out there, each with different levels of potential. The best way to see what the current prices of each coin are is through dedicated exchange rate software.
Websites that are dedicated to providing an accurate and up-to-date look at the current exchange will prove to be almost as valuable as the coin itself. They allow you to see how volatile a coin is and make note of whether buying in right now is a good idea or not. Finding out the exchange between satoshi to usd before you purchase a Bitcoin will be invaluable.
Choosing the Currency For You
As mentioned, there are hundreds of cryptocurrencies to choose from, each providing different chances of growth and stagnation. With so many options, it can be difficult to know whether or not a coin is right for you. Always believe in the coin you're choosing. There are safe bets like Bitcoin or Ethereum which have already proven to be just as stable as the gold standard with promises of extreme growth. However, you've likely missed the biggest jump in value they'll see.
There are also choices like cryptocurrencies that are worth less than a penny. They still have an exciting future in front of them and don't cost much to buy into. However, there's no promise they'll skyrocket like the major cryptocurrencies and likely won't ever go above a dollar. Choosing the right cryptocurrency for your portfolio can be hard, but a dedicated exchange website will help.