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Buying and Selling Cryptocurrency

June 22, 2018 | By Louis Tully

 

Digital currency has become quite the hot topic in the past few years. Whether it’s Bitcoin, Litecoin, or Ethereum, it’s all a form of online currency specifically known as cryptocurrency. While they used to be worth mere pennies just a couple of years ago, some are now worth several thousand dollars in the online marketplace. If you ever considered buying and selling cryptocurrency as an investment strategy, it is important to understand the basics behind this system of digital cash.

Buying and Selling Cryptocurrency

The main way to make a return on investing in cryptocurrency is to simply to buy it low and sell it when it peaks. While there are many online exchange systems that offer a secure place to buy and sell digital currency, Coinbase is the most popular starting point for most people who are testing the waters. Similar to buying stock in a business, you simply select your preferred type of cryptocurrency and then purchase a coin at the current market price. Your online coin stays in your digital ‘wallet’ until you wish to spend or sell it. You’ll want to keep a close eye on the value of your coin in the meantime. If it’s value increases, you could sell your coin for a nice profit.

Trading Cryptocurrency

Trading cryptocurrency provides much more potential for making money compared to traditional long-term investing, but it requires a higher risk tolerance and technical knowhow in order to be successful. Once you’ve bought a coin (or even a partial coin) you can begin trading. Before you go trading your digital stock, consider doing some research on the coin types you wish to follow and trade first. Twitter has a wealth of up-to-date information regarding all coin types and their trade values.

Accepting Cryptocurrency as Payment

If you’re running your own business, you can accept cryptocurrency as a form of payment. To do this, you will need a digital wallet as well as clients who want to pay in cryptocurrency. Doing this takes a little research on your part as you will need to decide how much to charge for your products and services based on current cryptocurrency values. For example, if you only wish to accept Bitcoin as cryptocurrency payment, you will need to charge a very small fraction of a whole coin due to Bitcoin’s high market value.

The great thing about cryptocurrency is also the worst thing about it; you never know what its value will be tomorrow. It could go up, it could go down or it could just stay the same. It’s a risky game that not many are willing to play just yet, but as cryptocurrency increases in popularity and use, it will begin to take the center stage in how we buy and sell in the future. If installment loans have been your chief way of keeping your finances afloat, maybe it’s time to start investing in cryptocurrency.