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Investing in cryptocurrency is becoming more and more popular. The problem is that normal people are not that tech savvy to understand the entire concept of cryptocurrency. If you’re investing in the wrong way, you can lose a significant amount of money. Owing to this very reason, when you are trying to invest in crypto currency, it is important to 1st find out the basics of the same. Today we would share with you a complete guide to investing in cryptocurrency.
Increasing popularity of the crypto currencies:
Owing to the increase in the price of Ether as well as Bitcoin in the last one year, crypto currencies have become pretty popular. That is why, more and more people are opting for investing in cryptocurrencies or trading in cryptocurrencies.
Types of crypto currencies:
If you’re looking at the types, you would realise that Bitcoin is the most dominant one and all of the others are grouped under a single group known as altcoins which include litecoin, ethereum, ripple etc. the market cap of Bitcoin is much higher as compared to the other crypto currency options that are available.
Depositing normal currency:
Whenever you want to invest in crypto currencies, you would have to 1st deposit normal currencies at the broker. Once you are able to deposit normal currency, thereafter you would be able to buy the crypto currency which you want.
There are plenty of exchanges which facilitate these transactions. Some of the most popular ones are:
There are also country-based exchanges as well.
That is why the number of exchanges is plenty.
Storing the crypto currencies:
Normally, when you’re trying to store the crypto currencies, instead of keeping them in the digital form, you should always keep them in the hardware form. When you’re keeping them in a hardware wallet, you can be sure that you would be keeping them in a completely secure way. There are plenty of hardware wallets which you can buy from e-commerce websites.
Amount of your total portfolio:
Crypto currencies are highly volatile. Owing to this very reason, you should only invest up to 25% to 30% off your entire portfolio’s net worth in crypto currencies.
So, if you’re investing in the cryptocurrency, you have to follow this guide in order to gain a basic idea of investing in crypto currencies.