Buying Crypto Currencies

❑ what are crypto currencies?

As a professional investor, one must carefully consider the diverse range of options available in the world of cryptocurrency. Bitcoin and Ethereum are among the most well-known and established cryptocurrencies, with stable track records and strong communities backing their value.

Investing in these assets can provide long-term growth potential and diversification for a portfolio. Furthermore, altcoins offer opportunities for higher returns but come with increased risk due to their volatility and uncertainty. It is essential to stay informed about market trends, new developments, and regulations in order to make educated investment decisions.

Utilising secure wallets to store and manage your cryptocurrencies is crucial to safeguarding your assets from cyber threats. Overall, navigating the cryptocurrency landscape requires diligence, research, and strategic thinking to maximise investment success.

Bitcoin is a bank in cyberspace, run by incorruptible software, offering a global, affordable, simple and secure savings account to billions of people who don’t have the option or desire to run their own hedge fund.

— Michael Saylor

Before investing you need to do your due diligence. That means research crypto currencies first, especially the important ones like Bitcoin and Ethereum.

Additionally, it is important for investors to consider the potential impact of external factors on the cryptocurrency market, such as geopolitical events, technological advancements, and regulatory changes. These factors can significantly influence the value of digital assets and should be taken into account when making investment decisions.

Diversifying your cryptocurrency holdings across different assets and sectors can help mitigate risk and optimise returns. It is also advisable to seek advice from financial experts or join online communities to stay updated on market trends and investment strategies. By staying proactive and adaptable in the ever-evolving world of cryptocurrency, investors can position themselves for long-term success and growth.

How Much to Invest?

Do not invest more than you can afford to lose. Start small, do not invest all your life savings. Do not invest money you need right away, consider that if you need that money soon, can you get it out quick enough? For example, when buying Bitcoin, you do not need to buy a whole Bitcoin all at once, you can buy a tiny fraction, according to what you can afford.

Due Diligence

Do your research, your due diligence, in any crypto currency before you even consider investing. Find out as much as you can about the token or coin before you even consider how much to invest. Look at the charts, learn how to do technical analysis and spot trends.

Diversify

Do not put all your eggs in one basket. Consider investing in different crypto currencies, even if just bitcoin and a stablecoin. Even if you decide on just one crypto currency, try to spread your risk via different crypto currencies, wallets, and exchanges.

Use Crypto Wallets

Make sure you do not leave too much crypto on centralised exchanges. Any crypto exchange is at risk of potentially going bankrupt or being hacked, and you could lose all crypto stored there. Once you have purchased your crypto, withdraw it to a software wallet or a hardware wallet.

Exit Strategy

Make sure you have an exit strategy — that is, how can you sell your crypto currencies when you need to, or when you think the investment is not performing as well as desired. You may have to pay capital gains tax on any profits you make, depending on your tax residency.

Avoiding Scams

Whether you are experienced in crypto or completely new to digital currencies, you must realise that no one is immune from scams, threats, phishing attacks, and Ponzi schemes. Scammers are finding new ways to exploit unsuspecting users. If you know their tactics, then you have some defence against them.

Top-100-Crypto-Memes-of-2022-73-Bitcoin-2018-vs-2021

Look at the psychology of people, and consider when is the right time to buy Bitcoin?

❑ Different crypto currencies

When you start investing in crypto currencies, which one should you start with?

Bitcoin was the first and the most well-known crypto currency.

You can buy other crypto, including stablecoins, and even gold-backed crypto currencies.

Crypto currencies other than Bitcoin are also known as Altcoins, of which Ethereum is the most popular and well-known.

Buying crypto currencies can be a complex and risky endeavor that requires careful research and consideration. Before purchasing any digital assets, it is essential to understand the volatile nature of this market and the potential risks involved.

Investors should assess their risk tolerance, financial goals, and investment strategy before diving into the world of cryptocurrencies. It is advisable to use reputable exchanges or platforms with robust security measures in place to protect your funds from hacking or theft.

Additionally, conducting thorough due diligence on the specific cryptocurrency you are interested in buying is crucial to ensure you are making an informed decision based on its technology, team, market trends, and potential for growth.

Consulting with financial advisors or experts in the field can also provide valuable insights and guidance when navigating this complex landscape.

In addition to the currencies listed to the right, others include Monero, Litecoin, Dogecoin, Stellar, EOS, Dash, XDC, Bitcoin Cash, Solana, SUI, AVAX, Fetch.AI, Pepe, Polkadot, Shiba Inu, Tron, Filecoin, Chainlink, Theta, and many more.

We do not endorse any particular crypto currency, and any investment you make in any crypto currency is at your own risk.

They tend to be very volatile, and can up or down by several hundreds of percent in a short period of time.

Bitcoin (BTC)

Bitcoin is a decentralized digital currency introduced in 2008 by Satoshi Nakamoto. It uses blockchain technology to secure and verify transactions between users on a peer-to-peer network without centralized authorities

Bitcoin operates independently of governments, banks, and other intermediaries. Bitcoin exists only in digital form, making it a virtual currency.

Details

Stablecoins

Stablecoins are a type of cryptocurrency whose value is pegged, or tied, to that of another currency, commodity, or financial instrument. This reference asset provides stability to the stablecoin’s market value, making it less volatile than other cryptocurrencies.

It is hard to predict if a currency will go up or down, and is not easy to invest in.

Examples include: Tether (USDT), USDC, DAI, BUSD, TUSD.

Details

Cardano (ADA)

Cardano is a decentralized public blockchain and cryptocurrency project that is focused on providing a scalable, secure, and sustainable platform for the development of decentralized applications (dApps) and digital assets.

ADA (Cardano’s native cryptocurrency) is named after Ada Lovelace, the 19th-century mathematician and computer scientist. It is used for transactions, smart contracts, and as a store of value.

Details

Ethereum (ETH)

Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.

Ether is the cryptocurrency, and Ethereum is the technology on which the cryptocurrency has been based. That said, most people still call the cryptocurrency Ethereum.

Details

Gold-backed Stablecoins

Gold-backed stablecoins are a type of cryptocurrency that combines the benefits of physical gold with the innovation of blockchain technology. Each token is backed by a specific amount of physical gold, providing stability and protection against market.

They are collateralised by physical gold, stored in secure vaults or allocated accounts. This ensures that the value of the token is tied to the value of gold.

Examples include: PAXG, KAU, DGX, KGLD.

Details

XRP

Ripple is a blockchain company that provides financial institution-level blockchain financial payment solutions, cheaper and faster than traditional payment methods. It operates a decentralized network and protocol, using the cryptocurrency XRP and the XRP Ledger.

There is a maximum supply of 100 billion tokens.

Details

❑ how to buy crypto currencies

1. Crypto exchanges

Crypto exchanges, also known as digital currency exchanges, are online platforms that enable users to buy, sell, and trade cryptocurrencies.

Crypto exchanges can be either decentralized or centralized. Decentralized exchanges (DEXes) operate on blockchain technology, allowing users to interact directly with each other without intermediaries.

Centralized exchanges (CEXes), on the other hand, are run by a single entity and maintain control over user accounts and transactions.

When selecting a crypto exchange, consider factors such as:

Fees: Look for exchanges with competitive fees and transparent pricing structures.

Security: Ensure the exchange has a strong track record of security and implements robust measures to protect user funds.

Regulation: Verify the exchange’s regulatory status and compliance with relevant laws and regulations.

Trading pairs: Choose an exchange that offers the cryptocurrencies and trading pairs you’re interested in.

User interface: Select an exchange with a user-friendly interface and robust customer support.

Remember to always research and evaluate an exchange’s reputation, security, and regulatory compliance before using it.

A List of Some Good Crypto Exchanges With Links:

Kinesis.com (invest in crypto, gold, silver)

There are also many other crypto exchanges out there. Please do your research before choosing one, compare different exchanges to see which one suits you best.

You can open account at several exchanges if you wish, to spread your risk, if you have quite a bit to invest.

Note that some exchanges are not available to customers in certain countries at this time.

2. peer-to-peer

Peer-to-peer (P2P) crypto currency exchanges allow you to buy and sell cryptocurrencies directly with other users, without intermediaries.

First select a reputable P2P exchange. Sign up for an account, complete the verification process, and then fund your account, such as through bank transfer, credit card.

Determine the trade terms, then start the trade by sending a request to a seller or by accepting a buyer’s offer.

Wait for the seller to confirm receipt of your payment and for the exchange to process the trade.

Once the trade is complete, your crypto currency will be deposited into your P2P exchange wallet.

Always research the seller and their reputation before initiating a trade to avoid being scammed.

Use escrow protection to ensure a secure transaction. Only trade with reputable sellers.

Follow the P2P exchange’s guidelines and rules for buying and selling cryptocurrencies.

By following these steps and tips, you can successfully buy crypto currencies peer-to-peer and take advantage of the benefits offered by these decentralised exchanges.

Local Coin Swap

Hodl Hodl

Exodus Wallet

3. Off-Exchange

Buying cryptocurrencies outside an exchange, also known as over-the-counter (OTC) trading, involves direct transactions between two parties without intermediaries like exchanges. This method is often preferred by institutional investors, high-net-worth individuals, and those seeking larger transaction volumes or more customized services.

Methods for Buying Cryptocurrencies Outside an Exchange:

Brokerages provide access to a range of crypto currencies and often have lower commissions compared to exchanges.

Certain payment services, such as Cash App and PayPal, allow users to buy and sell popular crypto currencies, although fees may apply. Other apps include Neverless, Revolut, eToro, and Plutus.

Direct Deals: Institutional investors or high-net-worth individuals can negotiate direct deals with other parties, such as mining pools, large holders, or other institutional investors. This method often requires significant capital and may involve more complex negotiations.

Specialised OTC desks connect buyers and sellers directly, facilitating large transactions. These desks typically cater to institutional clients.

Individuals can also engage in private sales with other parties, often through online forums or social media groups. However, this method carries higher risks due to the lack of regulatory oversight and potential for market manipulation.