If you’re interested in investing in cryptocurrency, the first step is to research the different types, and find out what you might like to invest in. With over 10,000 different types, there are a lot to choose from, and you’ll probably have only heard of a couple of the biggest ones. With more than 7 million active users, Bitcoin is the undisputed king, but the days of buying it for pence and selling for a huge profit are all but over – especially given the recent crypto crash.
Check out credentials and make sure that any information is trustworthy – you don’t want to end up losing money because of a dodgy tip on the internet. It’s worth looking for a reputable course to get a comprehensive understanding of how it works, like this one byYou can now invest in crypto using some mainstream platforms likeLearn to understand the cycles and the risks
Often, with crypto, the worst time to buy it is when everyone is talking about it. As with all investments, when there’s a surge in interest, the price goes up – but this tends to happen in extremes with cryptocurrency, meaning that the gains can be huge, but so can the losses. The FCA has expressed concern about cryptocurrency, citing scams and the fact that it’s difficult for consumers to work out the real value and risks involved for their stance – i.e. because crypto is so hard to understand, it’s also much more difficult to really comprehend what level of risk you’re taking on when you invest. They also dealt a blow to crypto values by banning cryptocurrency derivatives and exchange-traded notes being sold to retail investors from January 2021.