According to a recent survey conducted by the Pew Research Center, right around 15% of Americans have either invested in cryptocurrency or used cryptocurrency in some other way. From Bitcoin to Dogecoin, it’s clear that cryptocurrency has captivated the attention of a lot of people over the last few years.
If you haven’t gotten in on the cryptocurrency craze just yet, now would be the perfect time to do it. You can invest in cryptocurrency and then learn all about buying and selling crypto so that you can use it to your financial advantage.
We’ve created a crypto for beginners guide to help you get started. It’ll help you answer a variety of questions, including everything from “What is cryptocurrency?” to “Is crypto worth it?” It’ll also teach you how to buy and how to sell crypto.
Check out our crypto for beginners guide below.
What Is Cryptocurrency?
First things first: Before we get into the nitty-gritty when it comes to breaking down cryptocurrency, let’s make sure that you know what crypto actually is. That alone can be a difficult concept for some people to wrap their heads around.
Cryptocurrency is a digital form of currency that has been around for about 15 years now. Unlike other forms of currency that are out there, crypto is decentralized, which means that it isn’t controlled by a bank, a government, or any other kind of financial institution.
Cryptocurrency can be purchased and sold through the usage of a distributed ledger technology that is called blockchain. People can store the cryptocurrency that they buy and sell in crypto wallets that will help them monitor the value of their crypto at any given moment.
What Are the Most Popular Forms of Cryptocurrency?
The very first form of cryptocurrency was Bitcoin. It was first introduced back in 2008, and even today, it remains the most popular form of crypto on the market. It’s the kind of crypto that people think of first in most cases.
But it’s worth noting that Bitcoin is not the only form of cryptocurrency available today. There are actually quite a few popular forms of cryptocurrency that you can invest in if you would like.
Some of the most popular types of crypto at this time are:
Some people who invest in cryptocurrency will invest in just one specific type of it. But others will diversify their financial portfolios by buying and selling a few different kinds of crypto. You’re welcome to take whichever approach you would like to buying and selling it.
How Much Is Cryptocurrency Worth?
It can be a little bit difficult answering this question because of all the different forms of cryptocurrency that are out there today. Each individual type of cryptocurrency is worth a different amount of money. Additionally, the value of crypto changes on a minute-by-minute basis in most cases.
For this reason, we can’t tell you exactly how much cryptocurrency is worth. But we can tell you that you’re going to have to learn how to keep tabs on the value of cryptocurrency if you choose to invest in it.
The value of Bitcoin, for example, has fluctuated a whole lot over the last year. It’s been worth anywhere from $20,000 to $30,000 for the most part.
This fluctuation in the value of Bitcoin is a big part of what makes it such a volatile thing to invest in. But it’s also what makes investing in Bitcoin so much fun. It has the potential to help you make a ton of money if you buy it and sell it at the right price point.
What Makes Cryptocurrency Valuable?
Because cryptocurrency is a digital form of currency, you aren’t going to be able to hold it in your hands before buying or selling it. So what then makes some forms of crypto so valuable? And furthermore, what makes certain types of crypto more valuable than others?
At the end of the day, it really all comes down to one thing: Demand. The more demand that exists for a particular type of crypto, the more valuable that it’s going to be.
With something like Bitcoin, there is a limit to how much of this crypto exists. There is only so much Bitcoin to go around, which is why it becomes more valuable when there is a big demand for it. People are willing to pay more for Bitcoin when there isn’t a lot of it for them to purchase.
At the same time, there are some forms of cryptocurrency that are worth less than 10 cents. These types of crypto are only worth this much money because there isn’t enough of a demand for them just yet.
How Can You Buy Cryptocurrency?
If you’ve been interested in buying cryptocurrency for a little while now, the one thing holding you back might be the buying process. You can’t just walk into a crypto store and invest in cryptocurrency by purchasing it in this way.
Instead, you’ll need to open an account with a cryptocurrency broker and buy crypto through them. They’ll be able to help you turn your cash into crypto so that you can store it in a crypto wallet and keep an eye on its value.
Nowadays, you will also have the option of buying cryptocurrency through some crypto ATMs if you would like. Byte Federal is a company that specializes in producing ATMs that are designed to help people buy and sell Bitcoin.
You should think about setting up an account with Byte Federal so that you can utilize their ATM machines for buying and selling Bitcoin. You won’t regret doing it once you see just how easy it can be to do it.
How Can You Sell Cryptocurrency?
Buying crypto can be exciting in and of itself. It’s nice to know that you have a bunch of cryptocurrency sitting in your crypto wallet. You’ll love watching its value go up over time.
But the real excitement when it comes to cryptocurrency will come when you decide to sell cryptocurrency for a profit. You’re more than welcome to sell crypto whenever you would like.
It’s every bit as easy to sell cryptocurrency as it is to buy it. You can use the account that you create through a cryptocurrency exchange to sell crypto when you’re finished with it.
You can also step right up to any Byte Federal ATM machine and turn your cryptocurrency into cash in an instant. You’ll appreciate how easy it has become to sell cryptocurrency in this day and age.
Is Cryptocurrency a Good Investment?
As we alluded to earlier, there are millions and millions of Americans who are investing in cryptocurrency in 2022. A lot of people have finally become comfortable with the idea of buying and selling crypto after some previous confusion over doing it.
But before you begin buying and selling cryptocurrency, you should know that the jury is still out on whether or not it’s a good investment. Since crypto is still so new, not everyone is buying into the idea of it being a fantastic investment.
Generally speaking, most of the types of cryptocurrency that have been around for years now will be relatively safe investments. Bitcoin, for instance, isn’t going to go away anytime soon.
But some of the newer types of cryptocurrency might not provide people with the stability that something like Bitcoin will. You should always make it your mission to do the necessary research on crypto prior to investing in it.
Is Buying and Selling Cryptocurrency Legal?
As of right now, it is legal for people to buy and sell cryptocurrency as they please. You shouldn’t have to worry about breaking the law when you make the decision to sink some of your savings into crypto.
But with that being said, the rules and regulations regarding cryptocurrency are changing almost all the time. The U.S. government is still working on trying to figure out the best ways to regulate the cryptocurrency industry, especially when it comes to what tax responsibilities people will have when they buy and sell crypto regularly.
You should do your best to stay abreast of the latest crypto-related news as far as regulations are concerned. There could be some changes coming down the pipeline that will affect the way in which you invest in crypto.
What Does the Future Hold for Cryptocurrency?
The future appears to be pretty bright for cryptocurrency. While there are still some people who are skeptical about investing in it, others are hopeful that crypto is going to catch on and be something that everyone will invest in soon.
A big part of the reason why crypto’s future seems to be so bright is that more people are learning about it all the time. This should lead to more people deciding to invest in crypto in the future.
Another reason for crypto’s success is that there are so many people who have successfully invested in it over the last few years. There are literally people who have managed to turn themselves into millionaires by investing in Bitcoin and other forms of cryptocurrency.
There is obviously no guarantee that cryptocurrency is going to stick around forever. But it has managed to make it for more than a decade at this point. So it doesn’t sound like it’s going to up and disappear anytime soon.
Should You Invest in Cryptocurrency?
Now that you know what cryptocurrency is, how it works, and why you might want to invest in it, you might be seriously considering making your first crypto investment. It wouldn’t be the worst idea in the world to sink a little bit of your money into it just to get your feet wet.
But most experts advise against investing too much money in cryptocurrency at first. They say that you should only devote between 2 and 5% of your financial portfolio to crypto investments.
You also need to make sure that you research the specific type of cryptocurrency that you’re going to invest in before you do it. You do not want to invest in cryptocurrency just because someone else suggested that you should do it. They might not be providing you with the best crypto advice around.
As long as you feel comfortable enough investing in crypto and feel like you know what you’re doing, you’re welcome to start buying and selling it. But you should proceed with caution at first and learn as many lessons as you can along the way.
By taking this approach and keeping the crypto for beginners tips mentioned here in mind, you should be able to put yourself in the perfect position to make the most of cryptocurrency. It shouldn’t be long before you’re pulling the trigger on the smartest crypto investments that you can.
Use This Crypto for Beginners Guide to Make Smart Investments
Investing in crypto isn’t something you should do on a whim. You should educate yourself on it first before making any moves.
We’ve provided you with plenty to think about here in our crypto for beginners guide. You should take all the information that you’ve read and use it to your advantage as you set out to invest in crypto. These tips should point you in the right direction and have you buying into the hype surrounding crypto in a hurry.
Would you like to read more informative articles about cryptocurrency? Find them by poking around on the rest of our blog.