What is Cryptocurrency?
Pros and Cons
- You can invest as little as you want. Unlike the stock market where to buy one share you have to pay the full market price, you can buy a piece of the coin. That means if you have $20, you can buy $20 worth of a bitcoin or any other coin.
- Opportunity for a large, quick return. Most investments take years to see a major return on investment (ROI). The high volatility of crypto can cause major upside very quickly.
- Quick transactions. Some cryptocurrencies, like Ripple, take minutes to transfer significant amounts of money from one person to another as to days it can take some banks.
- The market is extremely volatile. One day bitcoin is worth 17k, the next it is 10k. It is a high risk high reward game.
- Opportunity to lose money quickly. You can get several short term gains, but you can also take some short term major hits, so invest wisely before jumping in too deep!
- Security. As long as you are on secure trading platforms you should be fine, but hackers still have the ability to try to hack your coins if they are not in a secure place. Consider getting a cold storage wallet.
How Can I Invest?
You can start investing in cryptocurrency right now. Coinbase allows you to buy the five main cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. There are also sites like Gdax (works with Coinbase) and Binance and a plethora of others that allow you to trade. All of these platforms take a transaction fee while making your crypto purchases. However, the platform, Robinhood (which also gives you one free stock when you create an account), is allowing it's users to buy Bitcoin and Ethereum sometime this month or early March with no transaction fee in select states.