The idea of cryptocurrency has gone mainstream in recent years. Everyone has heard of Bitcoin, even if it’s still challenging to explain exactly how it works.
But there are many other cryptocurrencies on the market besides Bitcoin that can prove to be a great investment. In this entry, we’ll talk about things to know before buying cryptocurrency and how to get started with Bitcoin, if that’s the route you want to take.
We’ll also dive into an Ethereum vs Ripple investment comparison. And find out the crypto forecast for Bitcoin for next year.
What Is Cryptocurrency Anyway?
Before going into details of the things to know before buying cryptocurrency and crypto forecast, it’s important to remind ourselves what is cryptocurrency in the first place.
To make it as simple as possible – cryptocurrency is online cash. It’s an anonymous way for people to perform transactions without being controlled by governments or banks.
Cryptocurrency doesn’t come in physical form, but it does create an irreversible record of every transaction. The prerequisite for buying, trading, and spending cryptocurrency is to open an official crypto digital wallet.
Bearing all this in mind, is it an excellent investment to buy Bitcoin or any other cryptocurrency? The facts below might help you make a decision.
Cryptocurrency Is Risky
Before learning about how to get started with Bitcoin or other cryptocurrencies, you have to understand that just like any investment, it comes with plenty of risks. Cryptocurrency investments are immensely speculative.
And many crypto start-up companies have quickly failed to render all their assets completely worthless. If you’re an amateur investor, you should probably stick to the amount you’re comfortable losing.
There are many cryptocurrency success stories, and there are many untold stories of quick and heavy losses. Professional traders are usually better prepared to take on risks. Researching crypto forecast and crypto companies is essential before adding these investments to your portfolio.
There Are Many Various Uses for Cryptocurrency
Cryptocurrency still comes with the association of illegal activity – and that may be true to some extent. But if that’s what is stopping you from learning how to get started with Bitcoin or any other crypto, you can put your fears aside.
Many legal businesses accept cryptocurrency. In fact, the popularity of using cryptocurrency as a low-cost, speedy international money transfer system is on the rise.
You can use cryptocurrency to buy goods online or as a business add it as your online payment method. Most crypto users tend to trade or mine cryptocurrency as a form of investment.
Cryptocurrencies Are Not Legal Everywhere
If you’re wondering is it a good investment to buy Bitcoin, and how to buy Bitcoin, you should take into consideration that cryptocurrencies are not welcome everywhere in the world. Bitcoin might be “real money” in a sense that it has value, and you can purchase goods and services using it.
But in most countries where it’s legal, it’s considered property rather than currency. As such, it can be taxed and regulated. But regulation of cryptocurrency is still rather muddled, even in countries such as the UK where it’s legal.
The Financial Conduct Authority (FCA) in the UK has recently banned amateur crypto trading for the purpose of protection. However, financial institutions and professional traders are still allowed to use it freely.
On the other hand, countries such as Saudi Arabia and Vietnam have banned cryptocurrency entirely. But there is still a big number of countries that are simply in a state on uncertainty due to a lack of written regulations regarding cryptocurrency.
Not All Cryptocurrencies Are Created Equal
The crypto forecast for Bitcoin in 2021 might be volatile, but still, many professional investors are willing to embrace it.
And that’s because Bitcoin has historically proven to be a great investment for many. Still, is it a good investment to buy Bitcoin only, or should you consider other cryptocurrencies too? Many cryptocurrencies are worth considering, but let’s talk about Ethereum (ETH) and Ripple (XRP).
Ethereum is usually the first alternative to Bitcoin many people consider. Its decentralised software launched in 2015. Since then, it’s quickly become the second-largest cryptocurrency in the world. Their market cap is still about 1/10 of Bitcoin.
Ripple is a global settlement network that has fast, inexpensive international payments as their primary business model. They’ve been around since 2012, and one of the things that makes them unique is that the currency doesn’t require mining.
Ethereum vs Ripple Investment
One of the things that Ethereum has going for it is a wide range of high-profile investors. But putting that aside, the decentralised cryptocurrency tokens are one of its main assets.
In contrast, Ripple is usually used with a specific intention in mind. It’s a great investment if you want to diversify your portfolio. But ultimately, just like with anything else, your decision will likely vary on many different factors.
Forget About Credit Cards and PayPal
There are many ways how to find Bitcoin and other cryptocurrencies, but there are also many difficulties. Let’s talk about how you can acquire Bitcoin for a moment. The majority of people use mining and official cryptocurrency exchanges to get their funds.
But you can also get a Bitcoin gift card or create an investment trust. Another incredibly popular solution is to use a Bitcoin ATM.
There are many Bitcoin operators in the UK that make buying efficient and easy. All you really need to do is insert cash into an ATM, or scan your digital wallet with QR.
And then receive a receipt with the instruction on how to transfer the funds to your wallet. Both of these options are available, and many more are sure to be added.
But you must remember that you can’t use your credit card or PayPal to buy Bitcoin. Once you make a Bitcoin transaction, it’s irreversible.
The Innovative and Volatile World of Cryptocurrency
There is so much that is yet to be discovered about cryptocurrency. There is a unique veil of mystery around it.
But that mystery is slowly starting to fade, as so many people become more and more interested in how to find Bitcoin. And how to invest in other cryptocurrencies.
It’s critical to remember that if you’re an amateur, you should be careful when buying Bitcoin or any other crypto. And that learning and reading everything you can about it will help you build your investment portfolio successfully.