Investing Into Cryptocurrency in 2022: A Guide For The Novice Investor

Written by Kevin Liew on 06 Jan 2022
1,722 Views • Crypto

Cryptocurrency has taken the world by storm in recent years. What was once a niche hobby for some people has turned into one of the world’s most popular investment opportunities in recent years. With approximately two million people in the UK alone having invested in Cryptocurrency, there is no doubt this popularity and garnered interest is sure to continue as we move forward.

That being said, much like other investment opportunities, knowing where to start can be challenging at the best of times, particularly when there are so many different options to choose from. While that is the case, there are numerous resources available to help those who want to invest in something like this, including this piece you are reading now. 

Detailed within this guide, you will find an introduction to Cryptocurrency, what it is, where to go when wanting to invest, as well as other helpful tidbits. Whether you are intending to invest in Crypto in the immediate future, or are finding out more information before embarking on your investment journey, read on to find out more! 

What Is Cryptocurrency?

Before investing, you need to be responsible and understand precisely what it is that you are investing in. For those who are not sure what Cryptocurrency is, this one’s for you! Investopedia defines Cryptocurrency as a digital or virtual currency, which is secured by cryptography. Cryptocurrency is decentralized, meaning it is not controlled, interfered with, or issued by governments or banks. 

As Cryptocurrency is encrypted, there is minimal risk of the currency being duplicated or stolen; your investment is as safe as it possibly can be. There are over ten thousand different Cryptocurrencies out there to choose from, so you can rest assured you will be able to find something that suits your individual needs or interests. 

What Are The Most Popular Cryptocurrencies Today?

The most popular and commonly thought of Cryptocurrencies includes the likes of Bitcoin. First launched in 2009, this Cryptocurrency has gone from strength to strength throughout the years, with millions globally investing into this nifty digital currency. Bitcoin has certainly dominated the Cryptocurrency world throughout recent years, but that does not mean that this is not the only Cryptocurrency to choose from. 

Ethereum is also a popular choice for investors in this day and age and has begun to challenge Bitcoin as the up-and-coming Cryptocurrency choice. While that is the case, there are vast differences between the two choices. Ethereum is more than just a digital currency; it is also a platform in which you can develop the existing blockchains further within the platform itself. As the demand for Ethereum grows and develops, subsequently, so does the blockchain. 

At the same time, other Cryptocurrencies have challenged Bitcoin and Ethereum with being the industry leaders, in which they have grown exponentially in recent years. This includes the likes of Dogecoin, which saw support throughout social media and became an overnight sensation as a result. With more and more people investing in Cryptocurrency, there is no doubt that more will begin to crop up throughout the wider aspects of the internet. 

That being said, if you find yourself to jump on the bandwagon yourself, investing in these Cryptocurrencies is easier than many first imagine, which takes us to the following section. 

How To Invest In Cryptocurrency?

Acquiring Bitcoin and other forms of digital currency has become much easier than when it was first launched and is accessible to people in different countries at the touch of a button. Not to mention, the development of technology and the expansion of the internet has enabled more people to get on board with this ever-growing phenomenon. 

Using an online Cryptocurrency exchange is your best bet when wanting to invest. You will be able to browse the vast catalogue of Cryptocurrencies and decide which you want to invest in. Furthermore, online exchanges like these give you one place to compare prices, ensuring you find the best rates possible and get the most bang for your buck. 

Signing up to a Cryptocurrency exchange provides you with the digital wallet that is needed to acquire the digital currency. Once you have made this first step, nothing stands in your way from making your first investment! Not to mention, signing-up provides you with a free Bitcoin wallet where you can loan Crypto and earn interest; what more could you ask for? 

How Can You Make Money Through Investing In Cryptocurrency? 

We feel confident this is the question on many Crypto investors’ lips. Ultimately, when investing in anything, you want to know as soon as possible what the rate of return will be and whether your investment is going to pay off. This is certainly the case with Cryptocurrency and is something that investors might find themselves worried about.

Much like other forms of currency, both digital and physical, there are several ways that Cryptocurrency can earn you money. Many people interested in Crypto have heard of the term mining. This is when algorithms are used to find Crypto when the rates are low and add them to your wallet while earning Crypto as a reward when doing so. Cryptocurrency mining can be a complex method for making money, and it takes some intricate skills. Opt for something like this when you have learned more about the Cryptocurrency world and have learned what you need to be successful in your efforts. 

On the other hand, holding onto your Cryptocurrency is another way of earning money through investing. This is the method of sitting patiently and having faith that the Cryptocurrency you have invested into will pay out some sort of return. Most commonly used when investing in Bitcoin, Ethereum and various other forms of Crypto, investors will need to be in tune with the market changes and influences, but trust that the Crypto you have will make it through whatever obstacles may lie ahead, without decreasing in value. 

Deciding to invest is not one that comes easily; as a novice, it is important you read up on the crucial details and stay up to date with things that might affect you. Go forth from here with the understanding that you will be investing in Cryptocurrency in the coming year and knowing how best to navigate this process while making a profit at the same time.

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