We’ve all heard of fortunes made (and sometimes lost) in the Wild West that is the cryptocurrency market. The risk and volatility scares many investors off, and rightly so if you’re a traditional, old-school investor.
However, the fact remains that we are in an era of unprecedented opportunity in the cryptocurrency market. Do you ever wish you had invested in the first wave of computer and internet start-ups? Well, I can’t offer you a time machine, but I can offer you the tools to become an informed investor ready to capitalize on this hot market.
What are cryptocurrencies and why would I want them?
Cryptocurrencies are digital assets that can be bought and sold online and, as such, can be used as alternative investment vehicles. Due to the meteoric rise of Bitcoin and some other cryptocurrencies, investing in these assets can be extremely profitable.
How many kinds of cryptocurrencies are there?
There are almost 1400 cryptocurrencies in circulation. Among the most well-know cryptocurrencies are Bitcoin, Ethereum, and Litecoin.
How do I invest in cryptocurrencies?
You can purchase cryptocurrencies from large exchanges like Coinbase or invest indirectly through a Bitcoin-based stock (ticker symbol GBTC) or by investing in companies that are pursuing cryptocurrencies and related technologies (such as LFIN, OTIV, or RIOT). Alternatively, if you’re not a cryptocurrency believer, you can short these stocks and profit as they lose value.