What is Cryptocurrency?
Although created in 2009, cryptocurrency is still a relatively new form of currency. Before you can begin investing in crypto it is important to first understand what it is. The most important thing to know is that crypto is digital money that is decentralized. What this means as this form of currency is not monitored, or regulated, by any governing agency. There are over 2,000 different cryptocurrencies and are capable of being used as payment at select retail shops. At the moment, cryptocurrency can be used to purchase gift cards at Target, Dunkin Donuts, Apple, and a few other retail shops. There’s also the possibility of ordering a BitPay card to have your cryptocurrency converted into dollars so you can make a withdrawal. Cryptocurrency has a variety of uses, but currently, the best way to use cryptocurrency is to invest it as you would stocks.
The Most Popular Crypto Currencies
Investing with Cryptocurrency
With an understanding of what cryptocurrency is, and what it’s used for, you are ready to start learning how to turn it into an investment. After choosing an exchange platform to make trades through, the next step is to transfer your money onto the platform buying the cryptocurrencies of your choice to invest with. Choose carefully about the trading platform, or crypto investing app, you use though as there are different features each platform offers. Knowing the features of each platform matters depending on your trading needs, and the amount of physical money you have to use to buy cryptocurrency. The best platforms for beginners to start out with are unquestionably Coinbase and Robinhood. Coinbase uses a real-time crypto watchlist allowing for smart and simple currency investments. Through simple investment platforms, you are able to do things such as learn how to get free Bitcoin, speculate with a variety of different coins, and even make money while you learn. The interface is easy to learn, and the only downside to Coinbase is that the trading fees are slightly higher than other platforms. When trading in Coinbase you can expect to pay the minimum app fee of ninety-nine cents, along with the actual fee for making the trade. However, the fast learning curve of the app can be worth it if you decide to utilize the sections of the app aimed at teaching you how to make smart trades on the app to minimize your loss. Unlike Coinbase, Robinhood offers trading in only seven different cryptocurrencies; however, Robinhood is a fee-free trading platform. There are no fees for making trades on the Robinhood app. The fact that there are only seven cryptocurrencies to buy, sell, and trade is seen as a disadvantage of the app; however, it is the opposite for those new to cryptocurrency.
If you are a beginner in trading with cryptocurrency, then having a smaller variety works to your advantage. A smaller selection for cryptocurrencies to trade makes it the perfect app to learn on how to buy, sell, and trade cryptocurrency responsibly. There are of course other platforms to trade cryptocurrency on, but for the best learning experience while minimizing your loss Coinbase and Robinhood are the best places to start.