Cryptocurrencies have existed for a little more than a decade and have reached unimaginable levels for early investors and creators. The first cryptocurrency was founded in 2009 by someone going under the pseudonym Satoshi Nakamoto. This cryptocurrency was Bitcoin, and it inspired an age of blockchain tech and digital currencies. Bitcoin has its reputation as the most popular cryptocurrency now but at its roots, it was a niche that not many supported.
The roots of cryptocurrencies
The history of Bitcoin is quite interesting and filled with lots of trivia. The coin’s first real-world transaction came on May 22 and is hailed as Bitcoins Pizza Day. This is because back in 2010 Laszlo Hanyecz a Floridian programmer purchased two pizzas for 10,000 Bitcoin, which was worth 41$ then, but today this equates to more than four hundred million U.S. dollars.
The transaction proved that cryptocurrencies can be applied just like any governing currency. The blockchain over time introduced more cryptocurrencies with different goals with some of the most important cryptocurrencies known today being developed. Each specified in their own fields amounting to many developments most notable of which being NFTs thanks to Ethereum.
Is it too late to invest in cryptocurrencies?
This is a common question that comes up as many think the train has passed and the value of coins will not grow. Luckily this is far from true since cryptocurrencies have a bright future ahead of them.
Experts predict that as time goes on they may even be the main currency of the world. Anyone interested in investing is encouraged to do so with an emphasis to learn about the space first.
Cryptocurrencies are a complicated medium to navigate especially for new investors. The internet has many tools to help beginners learn everything they need, like cryptomeister has a guide to buying crypto.
Furthermore, ensuring your funds are safe and choosing the correct crypto wallet is a key step. Investors can do this by looking up which wallets your region has available and checking their reviews. Also asking someone experienced is maybe the best way to go about this step.
Cryptocurrencies additionally offer investors a quite rare feature these days, that being anonymity. Transactions and investments are completely encrypted and provide you with investor anonymity. The only way someone can recognize you is if they know your wallet ID.
Pick the best investing strategy
Choosing which investing strategy you will employ directly impacts your portfolio. You may wish to actively trade cryptocurrencies or invest and hold until they reach your desired value. Both have their pros and cons, with active trading being the more common method.
This is because actively following the trends of coins can help you buy at low points and sell at high ones. While holding almost ensures you miss these highly profitable opportunities.
Another aspect of each investing strategy is deciding which cryptocurrencies to invest in. This is important since cryptocurrencies are very diverse in popularity, worth, and size. For example, cryptocurrencies like Bitcoin are quite stable and don’t fluctuate drastically while smaller coins often do and are thus considered a high-risk and high-reward option.