How many times do you hear someone say “if only I’d known to get into cryptocurrency”? It’s a phrase that gets thrown around a lot when people talk about money, investing and personal finances. Buying cryptocurrency has actually never been easier than it is now, but people tend to think it is a real complicated ‘game’ and they won’t be able to invest.
Of course, there is much more to investing than just buying your chosen cryptocurrency. And every year, there are new Crypto trends that arise, and others fall. If you want to get into crypto and become an experienced investor, you will need to have an understanding of the trends along with how to buy it, and how to safely store your investments.
How to Buy Cryptocurrency
Your first step when investing in crypto is to understand that you will have to choose a reputable exchange first to get started. An exchange is where you’ll be buying, selling and, likely, storing your crypto. Now feels like a much safer time to be looking into this, as crypto has been around much longer now, therefore there are many exchange websites out there that are reputable and have been running for a long time.
There are also crypto loans, which not everyone is fully informed about when entering the world of digital currency. In a nutshell, a crypto loan lets you borrow whenever you choose, for whatever reason you choose. With a reputable loan company, you can deposit your crypto and borrow up to 50% of its value straight away. Note that it’s vital to find a reputable, trusted crypto loan company, like BlockLender.
When you borrow from BlockLender, they will place your collateral into smart contracts with well-established DeFi protocols, such as Aave, Compound and Maker. This will then in turn act as collateral for funding for the loan that they are then providing to you. This enables them to able to offer such a good interest rate without taking any excessive risk with your crypto.
You will find that a lot of other crypto personal loans don’t work this way. They fund their loans through deposits, and as they need to offer high rates to attract depositors, they charge even higher rates on their lending.
Choose Which Cryptos You’d Like to Invest In
The most popular and commonly known one is Bitcoin, but this isn’t the only digital currency out there. In fact, it’s been said that there are over 7,500 cryptos in existence!
It may feel a lot to consider at the beginning, weighing up which ones you should buy. It is worth knowing that Cryptocurrency can be very up and down, it can be a volatile currency, so it’s important to take your time to research and to choose the right cryptos that you believe in.
It’s essential for all investors but most importantly new investors who are beginners with digital currencies to develop a sense of how the digital currency world works before investing. The number one starting tip is to take time to learn fully about the different currencies out there. It’s tempting to look into the biggest names first, like Bitcoin and Ether, but there is a bigger digital currency world out there and you’ll be more knowledgeable if you take the time to research for yourself.
Three Latest Trends in Cryptocurrency
- Regulation in the U.S. and abroad
In 2021, there were a lot of significant regulations taking place on cryptocurrencies. China made the decision to ban all crypto-related activities, and then came the U.S. authorities who began regulating certain aspects of the crypto market.
Regulators are now trying to put forms of authority in place to reduce the high volatility of the crypto market. If regulation goes forward, this would help to mitigate any damages associated with massive sell-off. Most importantly though, tougher regulations would be working to minimise the crypto usage that happens across illegal businesses and be able to keep a closer eye on the crypto sharks.
There are talks of regulations initially influencing the price of the cryptocurrency, in an already volatile market. However this should be temporary.
- The growth of GameFi
Over the past year or two, there has been a huge rise in the concept of GameFi. It is focused around ‘fun’ – winning and being rewarded for actions – so it’s no surprise this trend could be growing.
It means that projects online are rewarded players with things like non-fungible tokens (NFTs), whereas others are giving their users suitable value for their money and time. In 2023, GameFi could be the newest form of exposure that the crypto world needs. Gaming is a huge industry, but even if you’re not a gamer, everyone loves games and fun of some sort! But more so, it’s the opportunity to potentially get rewards that will undoubtedly appeal to the masses.
It looks like the enhanced Virtual Reality world we will be seeing boom soon, along with the addictiveness that comes with video games, the obsessions with social media, and the growing interest in crypto, means GameFi could be one to look out for.
- Greening cryptocurrencies will go mainstream.
Mining crypto has been the mainstream for a long while, but it’s not eco-friendly. It’s not actually even all that logical, since one coin worth thousands of dollars also produces thousands in the electric bill.
Since cryptocurrency is always going to be fairly energy-intensive, there are initiatives that are trying to produce digital assets with more care. There is said to be a rise in eco-friendly cryptocurrencies which will focus on alternative methods for gaining crypto. We’ve started to see people becoming engaged in investing, trading, getting coins through Airdrop, and even getting employed at cryptocurrency companies.
2022 has seen a big shift in peoples actions towards the whole planet being involved in sustainability, and going out of their way to help with reduced CO2 emissions. The ‘green’ topic applies to all industries, and for 2023, crypto will sure be one of them.
The bottom line is to always do your own full research first into the world of cryptocurrency, and have a sound understanding before jumping in. Luckily, the internet is filled with informative guides, and even the most reputable newspapers like The Times will cover topics on digital currency often.
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