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The rise of cryptocurrency has opened up a world of opportunity for savvy investors and punters alike. In particular cryptos like Bitcoin, Ethereum and Ripple are widely regarded by many as being akin to virtual gold.<\/span><\/p>\n With the future looking bright for the world of crypto, now may just be the right time to get on the wagon. To help you get started, we at United Finance have prepared a simple yet comprehensive guide which outlines the basics of cryptocurrency and tips on investing.<\/span><\/p>\n The Basics of Cryptocurrency<\/b><\/span><\/p>\n If you\u2019re looking to invest in cryptocurrencies, you\u2019ll need to have a relatively solid understanding of cryptocurrencies and how they work.<\/span><\/p>\n In a nutshell, cryptocurrencies are a form of digital money which exists purely in the realm of cyberspace. Unlike fiat currencies, cryptos are not issued by governments and are entirely unregulated.<\/span><\/p>\n At the point of writing, Bitcoin is the most valuable form<\/span><\/a> of cryptocurrency. Having been around for nearly a decade, Bitcoin has made significant inroads amongst mainstream consumers while also becoming the cryptocurrency of choice amongst major U.S retailers.<\/span><\/a><\/span><\/p>\n However, this doesn\u2019t mean that you should invest solely in Bitcoins. In fact there are dozens of new cryptos being released everyday with varying features and valuations. The key to making a profit lies in your ability to\u00a0<\/span><\/p>\n This makes them especially useful for folks who value their privacy as transactions are nearly untraceable. On the other hand, this means that it\u2019s extremely easy to be cheated or scammed by unscrupulous merchants and traders.<\/span><\/p>\n As they have no physical presence, cryptocurrencies are stored on eWallets which come in two forms. The first being hot wallets which are constantly online and can be susceptible to hack attacks. Cold wallets are hard drives which do not have to be connected to the internet and are a much safer option.<\/span><\/p>\n Now that you\u2019ve gained an understanding of cryptocurrencies, we take a look at some investment strategies.<\/span><\/p>\n Investing in Cryptocurrencies<\/b><\/span><\/p>\n 1. The Market is Extremely Volatile<\/b><\/span><\/p>\n Back in 2017 during the peak of the Bitcoin rush, millionaires were made overnight as valuations rocketed up into the stratosphere.<\/span><\/p>\n It was during this time that investors and punters began flooding the market in the hopes of finding their fortune. With prices increasing exponentially from $900 to $20000<\/span><\/a>, investors were able to clinch a return on investment of more than 2000%.<\/span><\/p>\n The good times would not last as BTC valuations eventually plunged to as low as $3000 in the 4th quarter of 2018. However, in recent times the Bitcoin and cryptocurrency<\/span><\/a> market has seen a resurgence with Bitcoin being priced above $10000 at the time of writing.<\/span><\/p>\n This massive volatility means that you can either stand to gain or lose massive amounts when investing. Hence, it is always best to ensure that you have a diverse portfolio consisting of different cryptocurrencies.<\/span><\/p>\n By doing so, you\u2019ll be able to significantly reduce your risk exposure while still allowing yourself some room for growth.\u00a0<\/span><\/p>\n Alongside this, it\u2019s always best to invest only what you can afford to lose. Given the extreme volatility of the market, chances are you won\u2019t be able to take corrective action until it is too late. By investing only what you can afford, you minimize the risk of you suffering a huge loss.<\/span><\/p>\n 2. Only work with trusted partners<\/b><\/span><\/p>\n The unregulated nature of the cryptocurrency market means that the likelihood of theft and hack attacks is extremely likely. As we\u2019ve seen from the collapse of Mt. Gox<\/span><\/a> and several other high-profile scandals<\/span><\/a>, operating within an unregulated market is not without its risks.<\/span><\/p>\n By working with fraudulent business partners and exchanges, careless investors may find themselves losing everything. To add insult to injury, due to the unregulated nature of the market, victims typically end up with little-to-no legal recourse.<\/span><\/p>\n Hence as a rule of thumb, only work with trusted exchanges or partners. Do your research beforehand and speak to professionals in the market. For example, if you read user evaluations, like this eToro review<\/span><\/a>, will help you have the feedback you need to reassure you of your safety.<\/span><\/p>\n Despite the variety of risks, the crypto market is an extremely lucrative one. Through a combination of careful investment and persistence, you too can benefit from cryptocurrency.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" The rise of cryptocurrency has opened up a world of opportunity for savvy investors and punters alike. In particular cryptos like Bitcoin, Ethereum and Ripple are widely regarded by many as being akin to virtual gold. With the future looking bright for the world of crypto, now may just be the right time to get … <\/p>\n