The Whats and Whys of Crypto Investing

In this age and time, Cryptocurrency has become a buzzword. Many traders and investors are investing in Cryptocurrency. Crypto investing and trading are some of the best-proven methods to earn more Cryptocurrency. Cryptocurrency has evolved from a digital currency playground to a mainstream global investment factor.

What is Cryptocurrency?

Cryptocurrency is a digital currency which is secured using cryptography techniques over a decentralised network. Blockchain is the technology behind the working of cryptocurrencies. Blockchain acts as the ledger that maintains all Cryptocurrency transactions. No one owns blockchain. Hence, it cannot be shut down by any government. As Cryptocurrency uses cryptography, it is impossible to counterfeit. The most popular Cryptocurrency is bitcoin. Bitcoin was the first introduced Cryptocurrency. One bitcoin has a value of around 45503 NZD (New Zealand Dollar), increasing day by day.

What is crypto investing?

Crypto investing is a proven method of earning Cryptocurrency while holding assets for a set period. Crypto investors buy crypto through various crypto exchanges and hold the Cryptocurrency till its price increases by a sizable margin. The period can range from weeks to months to even years. In October 2020, Bitcoin’s value was around 15000 NZD; now its price is approximately 45503 NZD. So, investors who had bought bitcoins saw a massive surge in their value over a few months.

Strategies for Crypto Investing:

  • Fixed investment: You can buy Cryptocurrency for a fixed amount of money at regular intervals. Suppose your investment is $100. You can buy Cryptocurrency for $25 on the first of each month regardless of the price. This method is for people who do not have the time to research and plan a custom strategy.
  • Balanced investment: If you are confused about which Cryptocurrency to buy, divide your investment into multiple assets like Bitcoin, Ethereum, Ripple, Tether, Litecoin, etc.
  • Unbalanced investment: If you think one particular Cryptocurrency will perform better than the other, invest a larger percentage in it. This method requires extensive research into the nature of particular cryptos and their volumes. You must have a great deal of knowledge about the market. It is not recommended for beginners to opt for unbalanced investment.
  • Profit based investment: If you are not sure about the future of Cryptocurrency, try profit-based investment. Buy a particular Cryptocurrency for less price and sell it for a profit when the price goes up. Afterwards, you can choose another Cryptocurrency that seems profitable for you. Engaging in small profits and shuffling over various Cryptocurrencies is less risky. However, the profit you acquire is less as you are selling cryptos rising in value by the day.

Crypto investing risks and solutions:

While crypto trading and investing sounds lucrative enough, it can be quite risky. Most people over the internet are frauds trying to scam your Cryptocurrency. To prevent this, users of good platforms are provided with recommendations and suggestions regarding trading. Cryptocurrency is not an asset. Its price may increase or decrease. Traders must have a good amount of experience to know the state of the market. The users can practice over a demo platform and gain experience to help them make correct decisions.

Why should a New Zealand trader choose a good platform for crypto investing?

The following features are offered by a crypto investing platform:

  • 2FA and password secured: It provides two-factor authentication to provide secured login. It also closely monitors for any breaches.
  • Biometric login feature: It provides quick, password-less and secure biometric login to your account. 
  • Customisable dashboard: The users can customise their dashboard to view only the stats and information they prefer.
  • Real-time prices: It updates Cryptocurrency prices in real-time. So, users can make accurate decisions.
  • Triggers for orders: It has features that allow you to create triggers for buying, selling Cryptocurrency when it hits a specified price. It also allows you to stop after buying a specified amount.
  • Low trading and spread fees: It offers trading fees of 0.6% that are lower than a vast majority of other crypto exchanges. It also has 0.41% spread fees on Bitcoin. On the other hand, other crypto exchanges have 5-6% or more as hidden spread fees. It charges no fees on crypto deposit and withdrawal.

Recommended Reading : 

Cryptocurrency investing is a time-consuming but easy way to earn Cryptocurrency. Though it comes with risks, a trustworthy crypto investment platform has always got your back. If you want, you can even try crypto investing and crypto trading for fun, or you could be an expert trader. Though it requires you to wait, it is a great passive hustle that doesn’t take up much time out of your daily schedule.