World-renowned singers, sports stars, actors, billionaire CEOs, and financial advisors have all disclosed that they have done the research, considered the alternatives, and invested in cryptocurrency. Like millions of other people, they’re putting their hard-earned money to work in the dynamic field of crypto investing.
It makes good sense. Crypto prices are notoriously volatile, but all over the world, investors willing to make a long-term commitment have earned record returns.
A simple comparison serves to prove the point.
- Apple is a great stock. It has delivered a 1,100% return over the past 10 years.
- Netflix is even better – 2,300%.
- Bitcoin investors have enjoyed a 700,000% return over the same period.
There is no guarantee that the crypto you purchase will grow in value, but over the 10 years ended June 28, 2021, Bitcoin’s price grew at a compound annual growth rate of 116.41%, dramatically outperforming gold (1.82%), Nasdaq (17.77%), and the Standard & Poor 500 (12.33%).
Experts say that the best time to invest in cryptocurrency was 10 years ago. The second-best time? Right now.
CRYPTO INVESTING BASICS
Cryptocurrency is a kind of virtual money that exists only on the internet. You buy and sell it at websites called exchanges. Some exchanges are bare-bones affairs that count on users to school themselves on computer science and investing basics. Others, like Estonia-based Kriptomat, pride themselves on making cryptocurrencies and crypto investing available to everyone.
Launched with an emphasis on European customers, Kriptomat delivers instructions, help files, and investing information in 23 European languages. The site is fully licensed and regulated by EU financial guidelines, and it is the first crypto exchange to earn ISO 9001 certification for business practices and ISO 27001 for data security.
When they think about crypto investing, most people think of Bitcoin. That’s natural. Bitcoin is the first and most widely used cryptocurrency. But thousands of other cryptocurrencies have been launched since Bitcoin appeared on the scene in 2009. Most are specialized to perform specific functions. There are cryptocurrencies that are attuned to the needs of game developers or the creators of financial-management applications, for instance. Others were launched to serve as bridges that allow users and applications to cooperate across multiple incompatible electronic platforms.
Your crypto investing journey begins with making an account at an online cryptocurrency exchange. These sites provide the current trading prices for cryptocurrency and offer you a chance to buy and sell cryptos.
Creating an account is slightly more complicated than selecting a username and password. Reputable exchanges will require you to verify your identity by providing a copy of your government-issued ID and perhaps other documents. These Know Your Customer regulations are legally required at European sites that comply with the anti-money laundering provisions of the EU’s GDPR. Identity verification takes days or longer at some sites. At streamlined sites like Kriptomat, you can complete the simple process in minutes.
Next, you’ll need to fund your account. Common options include credit and debit cards, bank wire transfers, and cash-transfer services like Neteller and Skrill. Credit and debit cards are generally the safest and easiest, but a good exchange site will offer you multiple options.
You don’t wind up with physical coins. Instead, the crypto you’ve purchased is transferred to your electronic address on the blockchain network that serves as the coin’s technical foundation – a sort of ledger that shows the location of all coins (in encrypted form). You may one day choose to install cryptocurrency wallet software that lets you access the blockchain, but most users prefer to use a custodial exchange like Kriptomat that secures their cryptocurrency and handles complex blockchain transactions on their behalf.
MANAGING YOUR PORTFOLIO
The ideal crypto investing platform is easy to use but offers powerful investing tools. Here are some of the options.
Automated trading features let you set trigger points for buying and selling crypto. For example, you can set a buy order that will be executed automatically when a crypto you’re tracking falls to a price you define. Or you can automatically sell crypto when the price rises. Automated trading lets you define your transactions in advance. Your trades will go through if you’re offline, asleep, or enjoying a holiday on a remote desert island.
Recurring buys let you build your portfolio gradually with scheduled investments – a strategy investment advisors call “cost averaging.” The idea is that you define purchases for the exchange platform to make on your behalf every week or every month. You can make small purchases using money that you might otherwise have spent thoughtlessly. Experts say this is an ideal way to set aside money for long-term goals.
Price alerts are a great way to ensure that you don’t miss an investing opportunity. Simply add coins to your watch list, and the exchange platform will send you notifications or emails when there is a significant change in prices.
Some exchanges offer an opportunity to earn passive income by staking crypto funds or even by setting up an interest-bearing savings account. Crypto accounts generally let investors earn a much better interest rate than you’ll get from your local bank.
Of course you’ll want low transaction fees and fast processing. The site should be easy to use with a minimum of jargon and a reference library that lets you dive deep into crypto technology and investing strategies.
For an example of all these tools and more, check out Kriptomat.io.
WHY NOT START TODAY?
Governments and banks dismissed cryptocurrencies as a fad for years. That may have been wishful thinking – government and financial institutions have made substantial profits from their monopoly on trading, lending, and investing.
Now that cryptocurrency is here to stay, the financial establishment is rushing to catch up. Governments are regulating Bitcoin. Some are considering the launch of national regulated electronic currencies. Financial institutions are rushing to integrate cryptocurrencies into their investment offerings.
With easy-to-use exchange platforms like Kriptomat, there is no reason to stand on the sidelines. Make a small purchase or a big investment. You’ll see that it’s easier than you imagined and the rewards are greater. Study the options, time your purchase, and join the crypto revolution.
