Cryptocurrency Guide: How to Get Started and Double Your Investment

The crypto market is booming, but it is also notoriously volatile. Before jumping in, traders should stay on top of its trends and security measures. Making a lot of money in a week is challenging, but you can double your investment in the long run.

Crypto coins are more than a way to store value. They provide additional benefits, such as participation in the issuing enterprises. You can buy bitcoin instantly or invest in altcoins. Today, cryptocurrencies may be bought, sold, and even lent or borrowed. 

Cryptocurrency Investment Basics

If you have experience with conventional markets like stocks or bonds, you will notice a few similarities. While cryptocurrencies are completely digital, they are not 100% innovative. Behind all those acronyms, trendy technologies, memes and tweets, lie the fundamental principles of investment.

  1.  Knowledge Is Power

First, you have to understand what you are investing in. Crypto assets are speculative and rapidly evolving. Learn how they differ from other strategies, and what factors will determine the value of your coins. 

  1. Take Care of Important Expenses

Do not prioritize crypto investment over vital financial needs like saving up for retirement, stocking an emergency fund, or paying high-interest debt.

  1. Evaluate the Risks

A wise investor considers the worst-case scenario to understand how much to put into an asset. Decide how much you can afford to lose. Many experts recommend dedicating just 5% of the portfolio to crypto assets.

  1. Look at Market Cap

Market capitalization is a reliable indicator of interest in a particular cryptocurrency. It is calculated as the number of coins multiplied by the current value. Use it to identify promising coins.

Overview of Assets

The pioneering cryptocurrency is still the most valuable asset. Since 2009, it has seen frequent rises and pullbacks. As of this writing, one coin is worth under $50,000. Bitcoin is known for its wild fluctuations. For example, in 2021, it peaked at $60,000 and subsequently dropped to $30,000. Bitcoin Cash, a fork of the original system, is a more stable asset for transactions. 

All other coins are known as Altcoins. Ethereum is the most popular altcoin, and the range includes thousands of other assets. Experts recommend that investors stick to the more mainstream coins.

Cryptocurrencies are based on different blockchain systems, most of which are decentralized. The underlying technology includes a series of blocks built upon one another to create a permanent ledger of transactions. Every block includes transaction records for buying and selling of the coins. As a block reaches its limit, a new one is formed to continue the chain. 

The Fastest Growing Cryptocurrencies

Individuals that purchased Bitcoins before 2021 managed to double their investments in April when the value skyrocketed to $60,000. However, if you had invested $1,000 In Solana on Jan. 1, 2021, you would have nearly $85,000 today! The other fastest-growing cryptocurrencies are Polkadot, Dogecoin, Ethereum, Cardano, Chainlink, and Binance Coin.

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