The idea of investing for the average person can often seem like a daunting prospect. Many people may be put off by the idea of investing their hard-earned cash, let alone what they should invest in. Not only that, but the rise in digital currencies such as Bitcoin and Ethereum is further adding confusion as to whether this is a good place to start an investment portfolio.
As there are hundreds of altcoins available waiting for you to swap your fiat money for the cryptocurrency, David Motta recommends that you ‘become a sponge and learn as much as possible about the space.’
“Since it’s so new, it’s very easy to believe in promises made by not so reputable companies due to lack of knowhow or having nothing else to compare to,” he said.
He adds that if there are any digital coins you’re thinking of investing in, you should read their white-paper to understand what exactly they are doing and what they plan to do with your money.
Some questions he says you should consider are:
- How do they plan to create rapid consumer adoption?
- What’s their technology like?
- How did their Initial Coin Offering (ICO) go?
- Did they follow the right steps and use a public escrow?
- Are they utilizing a mining or staking process?
If you feel happy with what you’ve read in the whitepaper and are still happy to proceed, start small and only invest a small portion of your money. This will give you an idea as to how cryptocurrencies works, how to trade it and how to handle it safely in a wallet. Just because a cryptocurrency may be doing well now doesn’t mean that’s always the case. Proceed with caution and avoid investing large sums.
How to Buy It?
To buy cryptocurrency or Altcoins you do so via online exchanges and platforms. The easiest way to buy Altcoins is first buy bitcoin, you can purchase the currency in fractions or ‘bits’ instead of the whole bitcoin with investment starting as low as $10 on some exchanges.
A few beginner-friendly exchanges to consider include Coinbase, LocalBitcoins, Blockchain.info, and Bitstamp, which was the first regulated and licensed virtual currency exchange in the EU.
Here is a comprehensive table with current exchanges in operation. If there are any on here that we missed, please let us know.
Top 40+ Sites to Buy Cryptocurrencies
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What is the Best Site in the List Above?
That is a tough question, each has its own advantages and disadvantages. We recommend checking a few out and look up on local forums to see what other users have to say about them. Localbitcoins.com is an interesting peer-to-peer exchange for beginners wanting to buy for their first time. You can use virtually any fiat currency from around the world. You may choose to pay by physical cash, in which case you have to meet the person in real life that is selling his coins, or alternatively you can do a fast bank transfer and the site will hold your coins in escrow for you once it goes through. Obviously there are more simple ways to start off. Some like to buy with Paypal, but not many of the leading exchanges accept this because of chargebacks.
What About the Best Cryptocurrency Exchange?
Sadly, with the demise of Crptsy there is a need for a new major firs-rate cryptocurrency exchange (aka altcoins). having many medium-sized cryptocurrency exchange sites is a better situation than having one large amazing option. Bittrex has now replaced Poloniex as the largest most amazing option. Its platform is functional enough to have attracted tens of millions of new customers every month. Things feel smooth when using Bittrex. All big and small trading pairs are offered and it is now possible to do cryptocurrency margin trading on major altcoins. This is a cool feature, but use it with caution as leveraged trading has a certain risk factor. Keep in mind that some of the best bitcoin exchange sites also do altcoins. Yobit, Bittrex, Cryptopia and Changelly, are great options worth checking out. Some even offer short selling on major coins. You may also like to check the market capitalizations and compare them to others listed there.
The complexity of researching where to trade bitcoin and altcoins can be daunting. If you are new to the idea of trading and exchanging cryptocurrencies, we suggest going to the sites that are most user friendly until you get a handle on how it all works.