Investing in cryptocurrencies
Various cryptocurrencies exist and new ones are being launched daily. If you wish to invest in one, firstly you need to obtain an overview of what’s available. The best way is to do some research online, find out about them on blogs and read in-depth articles.
How to get an electronic wallet
If you decide to buy digital currency, you usually require a wallet. You can keep Bitcoins, for example, in these electronic wallets. Visit websites specialized in cryptocurrencies or the official Bitcoin site to find out which wallet would be best for you. The key factors are the security of your wallet and ease of use. It is quite straightforward – install your Bitcoin wallet via the App Store on your smartphone, download it on your computer or register for a purely online version and you’ll soon be able to add and use the Bitcoins you have purchased. You do the same thing if you wish to buy other cryptocurrencies, such as Ether from the issuer Ethereum or Litecoin.
Ready to purchase
You have now installed a wallet or have registered for an online wallet. You receive a globally unique address, similar to an account number, which works like an e-mail address. You purchase the amount of currency required from an online provider. Once the transaction has been successfully completed, you will be credited with the amount purchased. Please note: you are solely responsible for the safekeeping of your cryptocurrency. You must keep your access codes, the private keys– the “key” to your money – and your passwords safe. If they get lost or are stolen, your money can quickly disappear.
Investing via banks
More and more banks are offering tracker certificates on Bitcoin, the most well-known cryptocurrency. Here the bank trades the cryptocurrency and you participate in price gains and losses via the certificate. This is an attractive option if you are less interested in the currency itself, but instead more in its performance on the stock market. You should nevertheless understand how a cryptocurrency works before buying it regardless of the method of purchase used. The principle of only investing money you can afford to lose also applies here. The price of such currencies can be extremely volatile.