Cryptocurrencies can be thought of a new type of
digital commodity or
digital money. They can act as a fuel for distibuted ledger networks and also be used as mediums of exchange to purchase goods and services. Depending on intent, cryptocurrencies can also be treated as an appreciating long-or-short term investment. Cryptocurrency values have been subject to extreme periods of volatility (in some cases up to 20%±), creating both risk and opportunity. As such, it is a worthwhile effort to perform in-depth due diligence before making any investments in cryptocurrencies.
How to invest in cryptocurrencies?
Making your initial investment into the world of cryptocurrency can be challenging, however, persistence will pay off. As is true in mostly all forms of investing, there are a myriad of variables to consider when investing in cryptocurrencies. Below, we explore several of the most important factors to consider when investing in cryptocurrency:
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Crypto Investment Strategies
Several of the most common investment strategies to directly acquire cryptocurrencies as an investment include:
- Buy-and-Hold
- Dollar-Cost Averaging
- Investment Vehicles
- Active Trading
- Passive Automatic Recurring Purchases
- Passive Cloud Mining
Where to invest in cryptocurrencies?
Buy and Trade Cryptocurrencies
Coinbase,
itBit,
BTC-e,
Kraken,
BTCC
Cryptocurrency Investment Vehicles
Bitcoin Investment Trust (OTCXS:GBTC) is the first publicly quoted bitcoin-backed securities. The BIT enables investors to gain exposure to the price movement of bitcoin without the callenges of buying, storing, and safekeeping bitcoins.
Bitcoin Investment Trust (BIT)
Passive Cryptocurrency Investing
Lawnmower Blockchain Investment Platform is an app that allows for passive automatic recurring cryptocurrency purchases.
Hosted cryptocurrency cloud mining is the purchase of mining hashing power to earn cryptocurrency in the form of a dividend.