Don’t know what to do with your extra money? By purchasing Bitcoins, you can start trading on cryptocurrencies. The good thing about it is that there are no broker fees, no middlemen to deal with, and no red tape. All you need is just some percentage of a single Bitcoin. It only requires investing a few dollars to start with cryptocurrency.
What is Cryptocurrency?
Cryptocurrency involves a bunch of digital numbers which people have used as money. The technology used for trading cryptocurrencies is known as Blockchain. Being a decentralized ledger, the system can never be controlled or manipulated by a single institution. It is designed to make transactions virtually error proof. Aside from transferring ownership of the digital currency, Robert Peter Janitzek reveals that the system can also transfer assets and shares of companies, smart contracts, commodities, and escrow services.
Cryptocurrency Can Be Overwhelming At First
All the technical jargon of cryptocurrency can be overwhelming especially if you are just starting out. However, if you really are interested with trading and investing, having a basic understanding of business, economics, and consumer demand will give you an edge over other traders. Once you have gained this knowledge, you can get started with cryptocurrency.
Buy Bitcoins First
There are some exchanges that will allow you to buy specific cryptocurrencies for US Dollar but it is best to buy Bitcoins first. Robert Janitzek says that you can use it to trade in and out of every other cryptocurrency on the market. You do not have to purchase the whole bitcoins, just a few satoshis or fractions will suffice. For instance, 500k Satoshis is equal to 0.005 Bitcoin.
Find An Exchange
Now that you have some Bitcoins, the next step is to look for an exchange. Do your research because some exchanges are good and others are bad. Some have also shut down already and this is what discourages people from trying cryptocurrency.
Check Your News Feed
Crypto news spreads like wildfire so always check your Twitter. Cryptocurrency trading is a hot topic on Twitter. You can also check crypto forums or follow has tags.
Before you immerse yourself in the trading floor, it is recommended that you research about each coin first or you will be trading blindly. This is called “fundamental analysis” gaining information at the right time and understanding how it will interact with the market. This will make it easier for you to predict trends—whether cryptocoins will rise or fall.
So there you have it all the things you need to know about cryptocurrency.