Let’s take a look at what is cryptocurrency, why you should invest in cryptocurrencies and how to get started trading them today.
While investing in cryptocurrency has been around for a while now, it hasn’t gained widespread popularity until recently. If you’re looking to start crypto trading for the first time, you might be wondering exactly how to do that or if it even makes sense in the first place.
Well, we have your back! This article will teach you everything you need to know about the world of cryptocurrencies, so you can fully understand how they work and decide whether this market is worth jumping into.
What Is Crypto?
There are only two types of currency available on earth right now – fiat money and cryptocurrency. But what does ‘crypto’ mean? And how did people become millionaires by betting on it? Well, those aren’t questions you are going to have much of a chance of answering right away.
Let me explain everything for you, so that when you buy Bitcoin on Coinbase or purchase Etherium from one of our many partners, you know exactly how cryptocurrencies got there.
How It Came About
Cryptocurrency was created as digital cash in 2009 by Satoshi Nakamoto, who was a person known as “Bitcoin” at the time. The idea behind blockchain technology became popular because it could help people transact without intermediary transactions like bank accounts or credit cards. Without these systems, exchanges like Robinhood would not be able to process sales or withdrawals on their own. That’s where cryptocurrency comes in, but also a lot more about its origins and uses.
The Origins Of Blockchains
Before you jump straight into buying Bitcoin or anything else, we should answer a question you probably already knew:
How did blocks and wallets come along?
It all began with bitcoin. Back then, it was called X11, which stands for Electronic Cash. They sent funds across computers, and since everyone was participating, no one could say no to their contributions and payments.
The next step was that blockchains started appearing, becoming more than just virtual currencies used on websites. Instead, they allowed to create new financial records that were completely decentralized from one another and separate from any other record. Think banks, insurance companies, social media platforms, legal agreements, etc.
Nowadays, most businesses with assets like property or stocks, government-issued debts, and even real estate properties use blockchains to make record-keeping transparent, so as to prevent fraud and protect against asset misappropriation. By using these technologies, smart contracts and other complex programs and processes can be set up, making transactions transparent and easy to track, allowing anyone to move value through multiple channels as efficiently as possible.
You Can Now Trade In Multiple Currencies At Once
Blockchains are basically data-sharing networks where you have full control over who gets on the network from whom, and that’s important because that control ensures no single entity gets control of too much power, or it may result in complete anarchy and chaos. However, users still have the option of transferring money between different blockchains.
If you use Coinbase, you can easily deposit Bitcoin and other cryptos onto it, then store them in either an exchange account or a hardware wallet. So, you no longer need to hold a Bitcoin in a cold storage device, like an old laptop or computer. All you need to do is take some cryptocurrency out of an ATM machine in Singapore and put it in a physical wallet. You can trade it anywhere in the globe from this point forward, and you don’t have to worry about losing your balance. Just keep it on the internet and never lose anything again.
Bitcoin is the Most Considered Blockchain Technology
Bitcoin was launched in 2009, although it wasn’t officially listed until 2012. Since then, it has grown immensely with millions of other traders worldwide using it as a hedge against inflation, especially in countries with high interest rates. There are currently thousands of ways to earn income with bitcoin like mining, staking coins, lending services (like Celsius), arbitrage services, etc.
The World Has Seen Its First Billionaire Bitcoin Trader
The term ‘bitcoin millionaire’ wasn’t invented yet. One man named Wei Dai Yang mined the first million bitcoins during his trip to China in 2013. He was awarded $2.3 million for successfully selling 1 million BTC shares. Within months, he sold 2 million BTC shares, earning himself a total of $8.6 million. By 2016, he had acquired 200 million USD in capital.
Wei has since founded several major companies and made quite a few big moves, including purchasing large stakes in Apple, Facebook, and Twitter. His net worth is estimated to be billions of dollars, but his wealth is actually down to just bitcoin. After being fired (or rather arrested) for insider information a couple of years ago, Yang says that he doesn’t want any more money or fame, instead wanting to turn off the lights in America before they shut down the entire country and send him to jail for life.
What Do We Know About Traders Who Are Millionaires With Their Own Digital Currency?
Now that bitcoin is considered the leading form of cryptocurrency, let us tackle one other huge segment. Many of the highest traders in the world are also holding traditional currencies, but they have adapted to changing regulations – like keeping enough cash reserves to last for future emergencies.
For example, Warren Buffet, founder of Berkshire Hathaway, is reportedly the wealthiest man in the world. The owner of the legendary American company Berkshire Hathaway has owned various fortunes over the past forty years. Although he is well-known as the largest shareholder in Berkshire Hathaway, Buffet isn’t really involved in day-to-day business operations. He is chairman of the board of directors and chief executive officer or COO of Berkshire Hathaway.
Buffett made his fortune as the CEO of Berkshire Hathaway, and the majority of his earnings are spent on investment services. He is well-known for building portfolios that have outperformed stock market’s averages over the years. As of 2021, the average annual return on Berkshire Hathaway investments is 12.4%. The current dividend rate is 7.5%, giving a yield of 5.7%. Buffett’s holdings alone include nearly 60% of Forbes’ billionaires list, making him one of the richest men in the world. Even though the investor owns nothing tangible, Buffet has built the largest portfolio of diversified stocks in history to earn such huge profits.
Warren Hargrove, co-founder of General Motors, is also well-known as the richest man in the United States in terms of monetary value and wealth. Prior to owning General Motors (GM), he worked for GE Capital (now Bank of America). According to Wall Street Journal, he has controlled the economy for 25 years, growing the U.S. auto manufacturing industry by 20% the first ten years. Over the course of his long career, he has managed to build three very successful car brands: Saturn, Land Rover, and Cadillac. GM employs close to 40,000 workers and made about US$18 billion last year, thanks to its massive amount of global profit reserves!
Investing in stocks can generate returns for decades. But you also need to choose your company carefully – do you want to reinvest those gains or sell all of your stake in them tomorrow? Some of the world’s greatest investors are known for having huge amounts of wealth as they invested in various equities. Stocks are essentially shares in your favorite company, with varying values as the value fluctuates in response to changes in demand. Like commodities, you should plan how many shares you will buy in order to avoid paying off all of your debt.
Some of the best examples of individual who made their fortunes by owning shares are Warren Buffett and Mark Zuckerberg. When they bought small pieces of stocks, like 4,000 shares each, their combined fortune grew from $1.6 billion in 1996 to $23.9 billion at the end of 2019.
Investing in stocks could also help you boost your 401(k) plan contribution to the maximum rate. It is critical that you invest in securities with low volatility because they are less likely to decrease in price or decrease liquidity in the market due to increased competition or regulatory pressures. Moreover, research the security’s risk level carefully, so as not to invest in one to increase your exposure to unanticipated risks.
It takes years to become rich. Therefore, once you have achieved considerable financial success, you should stop accumulating more wealth but continue to invest in stocks. Doing so would enable you to invest in your retirement and reap huge potential rewards.
How Much Money Does Investing In Stock And Bonds Have On Your Net Worth?
The main reason why you’ll want to start trading cryptocurrency is that many people who own significant sums of a similar type of investment can make good returns even without doing traditional market trading for a living. For instance, someone who invests in a basket of 30 stocks could see an approximately 10 percent return within months. And a person who holds bond investments for 50 years could potentially gain up to 3x that with just a small percentage of their portfolio.
You Should Consider Using Metatrader
When you’re starting out with crypto, there are dozens of options available. Each one will require certain resources and skills to perform a thorough due diligence report as well as educate yourself and others on proper trading practices. For instance, a broker or a mutual fund company will charge you based on the size of your equity exposure. While brokers offer fee caps or commission structures that are beneficial for beginners, this practice won’t be appropriate for seasoned crypto investors. Furthermore, many individuals feel uncomfortable opening a brokerage account with.