- Where to buy (brokers)
- How to find the best broker
- What currency to buy
Your Money, Bit by Bit to BitCoin
Any new market poses a challenge as many investors often do not know where to start, considering the inherent lack of trust in business and the vast pool for fraud many are willing to dive into to scam and shave for profit. However it is not as challenging to purchase various cryptocurrencies as many websites have already adapted to include multiple cryptocurrencies on one platform. There are many ways of buying cryptocurrencies, some more fraught with danger, others less risky.
Oftentimes, the easiest way to start investing is to find a broker or exchange. The latter are platforms that allow traders to buy and sell cryptocurrencies. The majority of exchanges are new, given the young nature of the market. Safety is always an issue and, oftentimes, the only way to discover if an exchange is safe is to check if it provides transparent data on coins sold. This in turn means whether the platform has the reserves necessary to secure liquidity of assets in turnover on the platform itself. The simplest way to check is to see if the exchange is regulated at all.
Given the glut of competition on the cryptocurrencies market and the endless number of brokers available, it is best to decide on which suits the specific investor best by relying on a number of criteria. Regulation is the first criteria as each country is slowly formulating its own laws on cryptocurrencies. Thus, it is best to open accounts with regulated firms to avoid ambiguity. Another important criterion is the variety of accounts as brokers should be able to offer customized options and the ability to quickly transfer or convert assets.
Currently, the three most prominent brokers allowing the purchase of cryptocurrencies are Coinbase, Changelly and Poloniex. Coinbase grants a simple interface, facilitating the purchase of Bitcoin, Litecoin or Ethereum. Changelly is an almost automated service providing rapid exchanges and transactions with the option of locking rates. Poloniex is the largest crypto exchange in terms of volume with good pairs of cryptocurrencies with BTC, however, it is a very vulnerable platform for hackers.
Unsurprisingly, the most logical follow-up question is which currency to invest in and which has the best promise. The question is extremely difficult to answer as the situation changes day by day and the only logical conclusion would be to follow the exchanges and determine which currency is on the rise. It is inherently difficult to predict the future of assets, especially crypto-assets, considering the fact of immense volatility and the slew of various factors affecting their exchange rates. Still, Bitcoin, the original cryptocurrency, remains the most solid and promising for the moment, despite its ups and downs.
The crypto market is still very young and the turbulence it is experiencing is not unexpected. Given the multitude of players entering the market, investors must be wary about which intermediaries to rely on, oftentimes compromising between safety and profit.