Cryptocurrency is one of the recent trends in the money market that comprises computer elements, science as well as a mathematical theory. Its primary function is to secure communication since it converts legible information into an unbreakable code. With cryptocurrency, you can also safely trace your purchases and transfers. Below you can find some useful tips on what to pay attention when choosing crypto tokens and tokenized securities. 1. Purchase cryptocurrencies directly. Investing in cryptocurrency is similar to investing in any other commodity. It can be used as an asset or an investment which you can sell and exchange. However, buy directly to avoid paying the investing fee. In relation to this, you should do the following: Create your portfolio. Cryptocurrencies can be exchanged, and have become another method of building your portfolio. You can thus store cash in the form of crypto and exchange it for cash anytime you require the money. Choose an alternative personal email. Using a usual email account puts an investor in the risk of exposure for a data breach. To avoid such, create a different account for trading purposes. Avoid putting all your crypto coins in one place. This is conventional investment wisdom which should prevail regarding cryptocurrency. Diversification is essential just as various financial advisors recommend taking positions in different stock types. 2. Exercise caution around mobile wallets Trading and keeping vast sums of cryptocurrencies on a mobile phone is risky. This is because mobiles are prone to be compromised either physically or electronically. Although they are convenient, this should not transcend security concerns. 3. Avoid rumors wrong strategies A common mistake among beginner crypto currency investors is joining the famous “pump and dump” group. Some social media groups promise investment tips concerning a particular coin; such spots should be avoided. Instead, participate in significant market trends through tokenized securities. Also, many people may claim that cryptocurrency is a fad or worse a pyramid scheme. Alternatively, a large group of people embraces the economic prospects of cryptocurrency assets. Therefore decide what to believe. For example, Bitcoin is the most popular cryptocurrency worldwide; however, very few people use them. For instance, in the US only 24 percent of adults know about it, and it’s surprising that only two percent of Americans use it. Therefore, it’s an excellent investment for investors since low usage depicts a profitable investment for the future. 4. Do due diligence As with any other investment, you should not invest with little or no understanding. Besides, the critical criteria in cryptocurrency are usage. For instance; the combined market cap of the cryptocurrencies is over 60 billion American dollars. This consists of all cryptocurrencies in existence including hundreds of smaller and unknown ones. The real-time usage of the cryptocurrencies increased, reflecting a rise in trend. Besides, cryptos can be exchanged to paper money, and the lock-in risk that was in existence previously is no more. Also, usage must be critical for you as an investor. The demands, as well as supply for cryptocurrencies, reflect a decent investment opportunity lately. Also, there exists an active usage of the currencies in the facilitation of payments between financial institutions hence meaningfully pushing the transaction costs down. Nonetheless, the advantage of being in procession of cryptocurrency is that it provides access to money as well as essential bank functions which include paying and wiring. 5. Expect anything However, significant volatility exists in cryptocurrency markets, and this cannot be ignored. Experienced investors are used to huge price swings that you often don’t find in traditional markets. By preparing for these unfavorable, and occasionally terrifying, investment performances, the intelligent crypto investor will be able to act rationally in case unexpected price drops. Investing in crypto requires necessary knowledge of the currency just and involves taking risks as with other investments. Therefore, the question of whether to invest or not solely depends on the individual. (Featured image by DepositPhotos) — DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.<doc-sep>Institutional investment in cryptocurrency is likely to increase over the next five years, according to research from Fidelity Investments. The firm surveyed 441 institutional investors—including pensions, hedge funds, and endowments—to determine the investment outlook for bitcoin and other cryptocurrencies. Fidelity Investments is the world’s fifth-largest asset manager with $2.5 trillion in assets under management. On May 2nd, the firm released research which surveyed 441 US institutional investors, including—pensions, hedge funds, financial advisors, and endowments to determine their outlook on investing in crypto. Institutional Investors Looking to Invest Based on results from the survey, 22 percent of respondents have already purchased cryptocurrency. If the survey accurately represents institutional interest, this is a remarkable increase from near-zero institutional investment in 2016. More promising is that four out of ten respondents are open to future investments in cryptocurrency within the next five years. If opinion remains unchanged, this means that institutional investors could increase by up to 18 percent over the next five years. Additionally, nearly half of institutional investors (47 percent) view digital assets as having a place in their investment portfolios. The data seems to indicate that institutional interest in bitcoin and crypto is increasing. As said by Tom Jessop, president of Fidelity Digital Assets, the firm’s crypto division: “We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge funds, to traditional institutional investors like family offices and endowments. More institutional investors are engaging with digital assets, either directly or through service providers, as the potential impact of blockchain technology on financial markets—new and old—becomes more readily apparent.” Of the different ways to invest, the survey indicated that institutions prefer (72 percent) purchasing investment products that hold or represent digital assets, such as futures. Meanwhile, purchasing cryptocurrency directly or buying equity in digital asset-related companies were both favorable to more than half of respondents (57 percent). Jessop went on to elaborate on how interest among institutions has grown: “Venture investment in the sector continues at a healthy pace, complemented by an increasing number of security token offerings (STOs), and the global regulatory environment remains cautiously constructive. Another indication of a growing ecosystem around digital assets is high transaction activity on the Bitcoin blockchain. Institutions are more aware of these developments now than they were six or twelve months ago, which is a positive sign for continued interest and adoption.” Issues Around Custody The bias towards purchasing investment products could represent a different issue in the industry—custody. The lack of readily available custody solutions means that institutional investors either need to take on excessive risk via self-custody or forgo investing in crypto. According to the survey, 18 percent of respondents use third-party custodians, 13 percent perform self-custody, and 6 percent use non-custodial exchanges. This is one of the issues that Fidelity Digital Assets intends to tackle as an institutional custodian. According to the firm’s white paper, self-custody for institutions is not palpable because of the regulations and legal obligations that large financial institutions must adhere to. As a result, self-custody via hardware wallets is not a feasible option for many of these investors. Fidelity Digital Assets is working to increase access to bitcoin and other cryptocurrencies by providing the “same level of custodial service expected for other assets, despite the regulatory uncertainty.” Institutional Perceptions of Cryptocurrency Opinions about cryptocurrency are also changing. Nearly half of the respondents to Fidelity’s survey appreciated crypto as “innovative technology,” and cited crypto’s low correlation to other assets as its “most appealing characteristic.” Of the different kinds of institutional investors, financial advisors and family offices were the most likely to be receptive towards crypto, with roughly three-fourths of both groups saying they view the characteristics of digital assets “most favorably.” The outlook towards cryptocurrency wasn’t all positive. Respondents cited price volatility, lack of regulatory clarity, and a “lack of fundamentals” all as obstacles to investment. However, it seems that as infrastructure and awareness grow in the sector, so too does institutional investment. And, the trend seems unlikely to stop. Get an edge on the cryptoasset market Access more crypto insights and context in every article as a paid member of CryptoSlate Edge. On-chain analysis Price snapshots More context Join now for $19/month Explore all benefits<doc-sep>LONDON, ENGLAND - DECEMBER 07: A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion between financial institutions, and now have a market cap of around 175 Billion USD, the crypto sector coninues to grow, as it continues to see wider mainstreem adoption. The price of one Bitcoin passed 15,000 USD across many exchanges today taking it higher than previous all time highs. (Photo by Dan Kitwood/Getty Images) GRUENHEIDE, GERMANY - SEPTEMBER 03: Tesla head Elon Musk talks to the press as he arrives to to have a look at the construction site of the new Tesla Gigafactory near Berlin on September 03, 2020 near Gruenheide, Germany. Musk is currently in Germany where he met with vaccine maker CureVac on Tuesday, with which Tesla has a cooperation to build devices for producing RNA vaccines, as well as German Economy Minister Peter Altmaier yesterday. (Photo by Maja Hitij/Getty Images) Ethereum's 27-year-old founder says we're in a crypto bubble. Did it just burst? Vitalik Buterin, co-founder and inventor of Ethereum speaks during Samsung Developer Conference in San Jose, California on October 30, 2019. (CNN Business) — Remember bitcoin? It’s back. In a big way. Bitcoin prices have surged nearly 60% to about $6,000 after plunging almost 75% in 2018. Sure, the cryptocurrency is still far from its all-time highs of just under $20,000, which it hit in December 2017. But crypto investors are increasingly optimistic that the bitcoin (XBT) bounce of 2019 is real and that it and other cryptocurrencies may enjoy a steady march higher. It may be tempting to declare this year’s bitcoin rebound as another sign of investor insanity. “Uh-oh: Investors are doing it again. Cue the sounds of a bubble being inflated. All we’re waiting for now is the inevitable pffft as the bubble pops.” But bitcoin may finally be trading at an appropriate price. Bitcoin going legit The key for bitcoin going forward is for the gains to moderate a bit so history doesn’t repeat itself. No one wants another bloodbath like in 2018. “The huge crash in 2018 was a correction after a speculative mania. The gains in 2017 were astronomical,” said Everett Millman, an analyst with Gainesville Coins, an investment firm specializing in precious metals and cryptocurrencies. Millman thinks some traders are still buying bitcoin because of “hopes and dreams.” But he’s cautiously optimistic that the worst days for bitcoin and other cryptocurrencies are behind them. So why has bitcoin bounced back so dramatically? Crypto investors increasingly believe bitcoin was oversold last year and is now becoming a legitimate investment for people looking to hedge the risk of currency and interest rate fluctuations. That could make bitcoin and other cryptocurrencies a solid bet for buy-and-hold investors over the long haul and not just short-term traders looking for a quick pop in price. “The selling in bitcoin got exhausted last year and people started to come back in around $4,000,” said Tyrone Ross, managing partner with NobleBridge Wealth Management. “You are now starting to see more people cite bitcoin as a credible asset that you can use to diversify your portfolio. People are looking at bitcoin as a type of digital gold,” Ross added. But many speculative investments remain tied to bitcoin and blockchain, the digital ledger that tracks cryptocurrency transactions as a public record. Shares of online retailer Overstock (OSTK), for example, have fallen more than 7% this year as the company struggles to prove to Wall Street that its crypto-related businesses can grow quickly enough to offset the continued losses in its core e-commerce business. Bitcoin going mainstream But bitcoin and other cryptocurrencies are going mainstream with both individual investors and larger institutions. The popular investing app Robinhood now offers investors the ability to buy bitcoin and several other cryptocurrencies. Fidelity and ETrade (ETFC) are reportedly getting ready to launch more crypto investing options for larger clients too. And ICE (ICE), the owner of the NYSE, has launched Bakkt, a futures exchange for bitcoin and other cryptos. All of this adds legitimacy — and perhaps stability — to bitcoin. It no longer has to be the 21st century market equivalent of the Wild West. “These solutions will provide infrastructure and services immensely superior to what is currently available in virtually all areas of the cryptocurrency industry. From payments to trading and custody, everything is improving at an impressive rate,” said Fabio Canesin, co-founder of Nash, a cryptocurrency exchange. Helping crypto’s mass-market appeal, people are actually starting to buy real stuff with bitcoin. But investors should still expect a lot more bitcoin volatility. A 30% drop in bitcoin should be considered routine — kind of like a 10% correction in stocks — said Martin Weiss, CEO of Weiss Ratings, an independent financial rating agency that launched a cryptocurrency rating service in 2018. But Weiss said bitcoin, as well as rival cryptocurrencies, including XRP, ethereum, cardano and EOS, should continue to rise over the long haul. And it wouldn’t be a problem if the pace of the gains begins to slow. In fact, it might be a welcome development. “Lets not forget that it takes time to get mainstream investors back and attract institutions. That trend is now in place,” Weiss said. “Bitcoin can gradually crawl back to its all-time highs over several years, but hopefully it doesn’t happen too quickly. If it does, investors could get burned again,” he added.<doc-sep>
If you want to learn how to invest in cryptocurrency, then look no further. This article will help you with everything you need to know. Surprisingly, it is not as hard as it may seem to invest in these popular digital assets. Let’s go through some of the vital steps needed in order to buy and invest in crypto. Understand why you want to invest The first and probably most important stage of this process is to decide whether investing in cryptocurrency is right for you. If you do not know how to answer the question ‘why are you investing?’ or perhaps your answer is ‘because I heard it makes you rich’, then there’s a lot more research you need If you want to learn how to invest in cryptocurrency, then look no further. This article will help you with everything you need to know. Surprisingly, it is not as hard as it may seem to invest in these popular digital assets. Let’s go through some of the vital steps needed in order to buy and invest in crypto. Understand why you want to invest The first and probably most important stage of this process is to decide whether investing in cryptocurrency is right for you. If you do not know how to answer the question ‘why are you investing?’ or perhaps your answer is ‘because I heard it makes you rich’, then there’s a lot more research you need to do. Many fail to understand that investing in cryptocurrency is a major gamble. The cryptocurrency space is volatile and should be entered with caution. However, cryptocurrencies are making waves in almost every industry and are expected to grow exponentially over the next few years. When investing in cryptocurrencies, it is important to remember that the market will always have its ups and downs. This is typical of any financial market, and you need to make sure you are not entering the space unprepared. How to invest in cryptocurrency Once you understand the reason or reasons you want to invest in cryptocurrency, then the next step is learning how to invest. The first thing you will need to do is set up an account on an exchange. This will allow you to buy cryptocurrencies with fiat currencies. Popular exchanges include Coinbase, Kraken, and Binance. Once you are set up, you can choose from a plethora of cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. If you are interested in growing and diversifying your portfolio, you may want to include more than just one type of crypto. To do this, you can either buy again with fiat currencies or set up another account on a different exchange where you can trade Bitcoin for other cryptos. Popular exchange Binance is the largest in the world in terms of trading volume and is also one of the most diversified platforms, allowing you to buy nearly any type of crypto available. However, if you ever struggle to find a certain type of cryptocurrency, you can visit coinmarketcap.com and click on ‘Markets’ to find where it’s listed. Story continues After you have invested in your chosen cryptos, it is important to buy a secure wallet to store them, like the Ledger or Trezor wallet. These two wallets are known as the safest places to secure your crypto from potential hackers. This is due to the fact they are offline. This enables you to not leave your funds on an exchange where they are vulnerable to hacks. Conclusion Will 2019 be your year to start investing? Hopefully by now you have an idea of how to invest in cryptocurrency and you feel confident to start growing your portfolio. This year might provide a great opportunity for you to move into the cryptocurrency space because you may be able to create large returns on relatively low prices. Remember to always make sure you only invest an amount you can afford and feel comfortable with. Cryptocurrencies will not be disappearing any time soon, and as society starts to accept them, they will only gain more attention and become more mainstream. For guides on cryptocurrencies, exchanges, and blockchain technology, click here. Make sure you take a look at all the latest crypto and blockchain news. The post How to invest in cryptocurrency appeared first on Coin Rivet.