By: Abdullah Kamran – Is cryptocurrency(Bitcoin and Altcoins) a good Investment? A brief insight into the digital assets
It depends. It’s hard to say anything with absolute certainty when it comes to the ever-changing world of cryptocurrency, but this is what I think. I believe that cryptocurrencies are a good investment because they’re going to change the way we do things. The idea behind a coin or token is to provide a useful service or product that people will want to use. In time, those who own tokens will be able to buy and sell whatever the company has to offer at a discount – or even for free.
It sounds like a good idea, doesn’t it? Well, that’s because it is. The problem is that most people don’t know how to go about buying these tokens or coins – and that’s why I’m writing this article.
There are two ways you can get involved with cryptocurrency: by buying the tokens or coins themselves; or by investing in companies that do stuff with them (called “crypto-corporations”). Most people start out by buying tokens or coins, and that’s what I’m going to talk about here. I’m going to split up this article into two main sections: Buying Bitcoin and Buying Other Cryptocurrencies(Altcoins). I’ll also include a couple of links at the bottom of each subheading so you can go straight to the websites where you can buy these coins and tokens.
Buying Bitcoin (BTC)
This is the daddy of all cryptocurrencies, and it’s definitely worth buying some. It’s been around for a while, and it’s still going strong. If you’re just getting started with crypto, this is probably the safest bet. It’s also the most expensive cryptocurrency, so if you’re only going to buy one, buy Bitcoin.
The easiest way to get BTC is by signing up for a site like Binance, Okex, Bitget or Kucoin and buying some with regular old money (PKR, USD & EUR). There are other ways to buy it, but this is the easiest way for a beginner. Once you’ve got your bitcoins, there are three things you can do with them: trade them on an exchange, spend them on goods and services (like buying stuff from Overstock.com), or hold onto them in hopes that they’ll go up in value over time. Most people do the last one. It’s called “hodling” because a guy on a Bitcoin forum made up that word back in 2011. If you HODL(a crypto term meaning “Hold on for dear life”) long enough, you could make some decent money with BTC. I recommend Binance for buying Bitcoin because it’s easy to use, has a good reputation and has low fees (0.1% for buying and selling).
Buying Other Cryptocurrencies (Altcoins)
The term ‘Altcoin‘ is a combination of two words: ‘alt‘ and ‘coin‘ where alt means ‘alternative’ and coin means ‘cryptocurrency’. Together they imply a category of cryptocurrency, which is an alternative to the digital Bitcoin currency. There are thousands of cryptocurrencies out there, but the ones you want to buy are the ones with a good team behind them. These are the coins or tokens that are going to change the world – and make money for their investors in the process. Ethereum, XRP, ADA, Matic and DOT are one of the best-reputed altcoins in the crypto industry right now and have a multi-million market capital share.
Which cryptocurrency is better is a subjective argument based on an investor’s financial circumstances, investing goals, risk tolerance, and beliefs. You should talk to a professional financial advisor about investing in cryptocurrency before buying any.
Cryptocurrencies vs. Stocks
Generally speaking, cryptocurrencies are much more volatile than stocks. What’s more, the cryptocurrency market is open 24 hours a day, 7 days a week. While Bitcoin and Ethereum are generally less risky than altcoins, they are still volatile assets. Most investors use a portfolio tracker to keep track of their cryptocurrency positions, especially if they’re invested in several altcoins.
This content should not be interpreted as investment advice. Cryptocurrency is a volatile market, do your independent research and only invest what you can afford to lose.