If you’ve been reading the news online over the past couple of years, chances are that you’ve encountered articles about the rapid success of cryptocurrencies like Bitcoin and Ethereum. It’s also likely that you’ve experienced the feeling that you missed out on the success that comes with these currencies – worth $7 a decade ago, now earning holders over $50,000.
Everyone is asking themselves, is it too late to invest in cryptocurrency? Despite the internet cash reaching an all-time-high every single week – a trend that would otherwise dissuade investors – there seems to be no indication that the rise is likely to happen any time soon. Before you join the craze of cryptocurrency, there are a few things that you should know first.
Why have cryptocurrencies taken off and what makes them a safe investment? To start, they are a unique currency that acts differently from your standard dollar. They implement their own “gold standard” and have a definitive limited supply. As more cryptocurrencies are “mined,” their value goes up because their natural supply goes down. There’s a definitive limit to each cryptocurrency and once each is depleted, the only way to receive them is through trade.
Currently, there are three things you can do with cryptocurrency. You can buy, sell, and exchange them. Buying and selling are rather self-explanatory: you spend money to purchase cryptocurrency. You can buy fractions of the currency and your value owned will slowly go up over time. Exchanging can be done through crypto wallets that hold no money other than your cryptocurrency.
How Much is Cryptocurrency Worth?
The value is constantly changing every day. Cryptocurrencies can be quite volatile, ranging from a drop of $100 one day to a gain of $1,000 the next. If you’re going to invest in cryptocurrency, it might be smart to keep up to date with the current value of the currencies you’re looking at. If a major dip occurs, you can find out right away and buy more with the value “on sale.”
One quality example of an exchange rate to keep track of is Satoshi to USD. Satoshi is the currency used in Bitcoin and when the value drops, a quality converter will be instantly updated so that you’re not left working with outdated information. Currency converters should be able to keep track of the volatile market so that you know when to exchange and purchase your currency.
Finding the Right Currency For You
Another important tip for cryptocurrency investing is that there are thousands of different currencies with a wide range of values. You might have heard of the top performer – Bitcoin – but that’s just the name brand of cryptocurrency. Not every currency is performing at values of over $50,000. Some currencies are still less than a penny and are just waiting to explode. Finding the right currency comes down to you and the data you can find about each crypto.
It’s not too late to invest in cryptocurrencies – chances are there won’t be another explosion like that of Bitcoin, but currencies akin to it are rising every day.