Recently, Bitcoin has broken historic high again. This time it reached the $60k mark. Almost all the Media have updated headlines with optimistic predictions that BTC will hit 100K by the end of this year.
First of all, when we hear that Bitcoin (or another asset like the US Dollar, Gold, Euro, Oil) is getting more expensive, we get the feeling of Fear of missing out (FOMO). FOMO – is a powerful motivator to “get in the game” in the case of working with cryptocurrencies.
When BTC price grows and everyone is talking about it, the thoughts “how to buy cryptocurrency”, “where to buy it”, and most importantly “when is it worth buying” immediately pop up.
So, let’s find the answers to these questions.
Where to buy cryptocurrencies?
Cryptocurrencies are virtual money, therefore, you should not look for the possibility of “physical purchase”. The most reliable way is to use a cryptocurrency platform. For example, you can buy some crypto, like Bitcoin Cash or others for fiat funds, or you can exchange BHC to BTC on CEX.IO.
When choosing an exchange or platform, it’s important to pay attention to the available fiat and cryptocurrency pairs, liquidity, and a number of different payment methods. Search info about the security measures the exchange takes to keep customers’ data and funds safe. Also, whether or not the exchange follows KYC/AML policies, and what licenses it has — this will help you understand its relation to regulation, and thus decide how you can trust it.
How to buy cryptocurrencies?
At a first glance, it seems a simple question, but you can buy cryptocurrencies in different ways.
For example, you can:
- The easiest way is to buy crypto with your card. Some exchanges offer such service — it’s fast and hassle-free.
- Trade on some cryptocurrency trading platforms: convert fiat funds like Dollars or Euros to cryptocurrencies.
- Buy crypto through an exchanger-service and store it on an E-wallet. Exchange services are not the same as cryptocurrency trading platforms, their options are much more limited.
There should be no difficulties with these actions – even beginner users can deal with it.
And, now is the time for the main point of this article.
When it is the right moment for the crypto purchase?
It is the moment for a surprise because there is no perfect time for buy. And it is not a joke. Moreover, it is always the perfect time to become the owner of a cryptocurrency.
How does it work? What’s the secret?
Everything is extremely simple, cryptocurrencies are not limited to one or two assets. The choice is very wide, the number of existing assets overcame 8000 according to CoinMarketCap data. Different cryptocurrencies differ in operating principles. Traders have non-identical approaches to their assets, and therefore their requirements are also not the same. Everything depends on your personal preferences.
Before buying crypto assets, you should ask yourself a few simple questions, and you will easily figure out which cryptocurrency is for you and when you should buy it.
Start with the question: “Why do I need cryptocurrency?” While there might be just one core answer: to earn with it, however, you can use different approaches to it:
- I want to master trading and become a professional trader and do trading for living.
- I want to do a long-term investment.
- People make quick profit with crypto. I want to learn that too.
The answer to this question will help you to understand what strategy and cryptocurrency suit you!
If you choose option 1, it should be a cryptocurrency with a wide range of price jumps. When you analyze the market, study trading strategies, and correctly place trading orders, it is quite possible to become a professional trader on your own. Here, both the most expensive cryptocurrencies in the world and those that cost less than a dollar are suitable – the main thing is your skills and strategy.
In case you pursue the 2nd option, you need to pay attention to some time-tested cryptocurrencies which also promise potential growth. But, it is important to remember that cryptocurrencies are volatile. It is also important to understand that long-term investment is not a week or a month, it implies a bigger period of time. So do a thorough research, study the news, follow the projects development, before you decide to invest into its cryptocurrency long term.
And if you go for the 3rd option, you need to clarify an additional question for yourself.
How fast do you want to earn with crypto?
It can be:
a) Here and now
b) I want to make a fortune, but in the future.
Each of these options is good alone. And also, these two approaches can be combined.
Let’s consider some cases.
To make money “here and now”, you can buy Bitcoin, for example, wait for a little while its rate goes up, and sell it with a profit. Given the recent rally, you might not need to wait for too long.
But, also, you can follow the Buy&HODL strategy i.e. buy Bitcoin, and wait for a capital price significantly rise in the future.
There are also PoS coins. PoS are the cryptocurrencies that work on the Proof of Stake principle. They are a kind of combination of both short-term and long-term earnings. It works as follows – you need to buy and store PoS coins. When you stake them – you can benefit from a potential growth, but in addition to this, you will receive a staking reward.
The reward is a kind of earnings “here and now”. The percentage of reward accrual is different depending on the coin. Some popular staking coins examples: Zilliqa, Tezos, Polkadot, Cosmos, Tron.
It is only a small part of how cryptocurrencies work, but this should be enough to understand that if you wish, you’ll always find a way to use your crypto-assets. Instead of limiting yourself to one currency – you can collect a crypto portfolio from different altcoins and find your own style of working with crypto.
Since cryptocurrencies have different potential depending on the asset – you can combine them in your portfolio and use various approaches to trading with each of them. But remember to do your own analysis instead of following other random people’s advice.
So, if you do not yet own cryptocurrency, there is nothing to worry about. You haven’t missed anything, and you still can enter the cryptocurrency market now. From the moment the first crypto asset was created until now, the crypto market faced everything – denial, misunderstanding, raised interest, news boom, and so on.
And after all of these, by 2021, cryptocurrencies are recognized almost all over the world. So, you can still choose your right time to enter the crypto market.