There’s been a lot of buzz in the media about Bitcoin and cryptocurrencies lately and, to the average person, it might seem very daunting. So as an insider, I’d like to break it down and show you just how simple it is to get involved in this fascinating market.
Is it too late to get in?
Not at all. Even though many experts believe that this technology is about to revolutionise the world, only a very small percentage of people have started dealing with cryptocurrencies or made an investment.
It should be noted that cryptocurrencies are extremely volatile which makes them very risky to trade. However, if you aim to hold them for the long-term, then any short-term surges or dips should not concern you too much.
That said, the technology is still largely under development and a bit experimental, which is why it is considered a very high-risk investment and we should never invest more than we can afford to lose.
What is blockchain?
The technology was invented for Bitcoin but has now found many other uses.
Put simply; a blockchain is a database that is stored on many different computers at the same time. Because everybody has access to the same information, it is easy to verify that the data is accurate.
Most data these days is stored on a single computer making it very easy for hackers to steal. During almost a decade since the invention of this technology, no hacker has ever been able to crack a blockchain network.
Bitcoin uses the blockchain to verify ownership of value. So you can send Bitcoins from one person to another, and the entire network can see that the transaction indeed took place.
At the moment, developers are creating new applications that use the blockchain for everything from tracking produce across a supply line, to verifying the ownership of intellectual property and much more.
Which cryptos should I buy?
With more than 1,500 different cryptocurrencies in circulation, it can be a bit difficult to track them all. Many of the smaller ones are very tricky because it’s not always clear if they will ever see mass adoption.
For beginners, it’s usually best to stick to the more well-established coins like Bitcoin, Ethereum, XRP, and Litecoin.
On the eToro platform, we offer only the most well-established cryptocurrencies.
As with any investment, you don’t want to put all of your eggs in a single basket. So by spreading your funds around different cryptocurrencies, you can help decrease your risk. This way, if one of them fails you don’t lose too much and if one of them skyrockets you still take advantage.
If you’re not sure what to do, you can also start out by copying other eToro traders who have more experience.
How do I get started?
The first step is always the hardest, but at eToro, we try to make it as simple as possible. Once you click the button below, your journey will begin. We will then guide you through the process of opening an account and making your first trade in a simple and fun way.
The account is completely free and comes equipped with a demo portfolio that has $100,000 worth of virtual money that you can use to practice and learn the system.
So what are you waiting for?
Virtual currencies are highly volatile. Your capital is at risk.