So you have finally learned that Cryptocurrency is here to stay and all the FUD issued by Central media teams saying how “Bitcoin’s bubble will burst” were totally wrong!
What you need to know first and foremost about Cryptocurrency is that it does not technically have a worth value. Unlike the Dollar or Sterling with holds its value against commodities, Gold, Oil etc, Cryptocurrency at this moment in time does not.
Cryptocurrency, in particular, Bitcoin’s price fluctuations has certainly hit the headlines in the past 18 months due to the price increasing from a around $1000 in 2017 to $20,000 at the beginning of 2018.
The price of Bitcoin has got a lot of people wealthy as of late and also a lot of people in some serious financial issues.
The highly volatile environment in which Cryptocurrencies revolve in can see a price change of upto 100% in hours. This is not something you would see with your Fiat currencies like the Dollar or Sterling but for a stock market trader, it’s quite close to a days work in Wall Street.
So you want to invest in Cryptocurrency?
Our advice would be to always do your own due diligence or DYODD for short.
Investing or even purchasing a Cryptocurrency nowadays is as easy as buying a product off Amazon.
Many central exchanges like Coinbase for example will allow you to sign up for an account, tap in a dollar figure you want to buy in Cryptocurrency and have it loaded to your online account in minutes.
The downside to using sites like Coinbase is the fees they charge to purchase Cryptocurrency, sometimes these central exchanges charge anything up to 6% which in figures of the thousands can be a pretty large lump taken from your holdings.
Another issue with these central exchanges is the lack of ability to purchase Cryptocurrencies that they do not list.
XRP for example is a sought after digital asset due to it’s apparent ability to be a disrupted payment option over Visa. At this moment in time, you cannot buy XRP on Coinbase so for an investor to get their hands on XRP they would need to open an account on an exchange like Binance and use their Bitcoin or Ethereum to buy XRP.
This process can take a few minutes to a few days depending on the exchanges allowing you to pass their KYC (know your customer) procedures and when they do finally pass your validity details, the price may have dropped by 50% or more.
So again, if you want to be an investor in Cryptocurrency, we advise to take precaution, think if the money your about to invest is money you can afford to lose and always Do your own due diligence.