Cryptocurrency has become an extremely popular alternative method of investment over the past few years, with investors turning major profits and the total market capitalization of the entire market reaching trillions of dollars and still showing major, major growth. The market is confusing, as many people have struggled to grasp what exactly cryptocurrency is, what it’s various components are, and what the best cryptocurrency to invest in 2021 is. According to Money Morning, many different types of Bitcoin are marking major moves with Bitcoin currently on a “12-month run from $8,600 all the way up to $34,000, or Ethereum’s jump from $166 to more than $1,350 – those are just two household names.”
If you are interested in investing in cryptocurrency, there’s good news, as there are many ways to do this.
Ways to Invest in Cryptocurrency
There are many ways and different types of apps that can allow you to invest in Cryptocurrency. First, it is worth noting that many major apps allow you to do just that. This includes apps like Robinhood, Coinbase, and more. These apps should allow you to safely and securely hook into the blockchain and make purchases and sales of Cryptocurrency. In many cases, they are low or no-commission apps. They may also have a variety of other information, like graphs, research, and other important metrics that can help you remain informed about the Cryptocurrency market and the best ways you can make an informed investment.
You should do your research and find the app that best fits your needs. Your decision should be made on a variety of factors, including what sort of research and guidance they provide, the amount they charge per trade, and how secure the app is. The first two items may be negotiable for you, but the third should not be. If an app doesn’t have world-class encryption, you should avoid it at all costs.
Types of Crypto to Invest In
One of the biggest misnomers about cryptocurrencies is that it just consists of Bitcoin. of course, this is not true. There are over 6,700 types of cryptocurrencies on the market today, and as the market continues to expand, it seems likely that more and more currencies will arrive on the marketplace. Bitcoin is the most popular form and has the highest market capitalization right now. From there, other forms of Cryptocurrency you can purchase include Ripple, Ethereum, ROS, Bitcoin Cash, and Litecoin.
However, these are not the only ways to invest in Cryptocurrency. There are also ETFs – or Exchange Traded Funds – that can allow you to invest in Bitcoin. These ETFs are funds that invest in Cryptocurrencies and allow you to purchase or sell shares of these ETFs. The price of these ETFs will then move based on the performance of their component currencies.
Cryptocurrency is a wildly expanding market, one that seems to have quite a bit of upside. That upside comes with major risk and volatility. As such, make sure you do your homework and find a fund that is right for you.