Investing in cryptocurrency has a lot of advantages with negligible downsides. However, it seems one of the greatest things about cryptocurrency investment is the barrier to entry, which is pretty low.
You only need two things to start investing in cryptocurrencies; your mobile phone and an internet connection. As long as you can run either Android or iOS apps, you can always become an investor without needing any certifications or licenses.
If you’ve decided to start your foray into cryptocurrency investment, you need apps. In this article, we’ll go over the best app for investing in Cryptocurrency.
It’s certainly a wonderful time to be alive. It was once unthinkable that the spread of disease will lock us in for a year, but here we are. It seems the world can never run out of wonders in the 21st century.
Speaking of wonders, nobody ever thought digital money will go mainstream some two decades ago. While humans struggled to understand the magic of the internet, an equally innovative piece of technology was being bred: cryptocurrencies.
Cryptocurrencies have become so popular that it’s impossible to ignore them anymore. If you still don’t understand what cryptocurrencies mean, you’ll learn all about them in this concise post.
What Is a Cryptocurrency?
With El Salvador officially making Bitcoin legal tender, it’s only a matter of time before you’ll be forced to transact in digital currencies. It helps to learn all you can about crypto before that time comes.
A cryptocurrency refers to a decentralized digital currency that’s chiefly designed to be used for transactions over the internet. Cryptocurrencies have only been around since 2009 when Satoshi Nakamoto introduced Bitcoin.
Ever since Bitcoin was introduced, it has maintained its place as the most valuable currency by market capitalization, and it inspired the creation of other cryptocurrencies like Ethereum and Litecoin.
Cryptocurrencies are completely decentralized. They are neither issued nor controlled by any government. Instead, they are mined and managed by regular individuals who dedicate powerful computer hardware to solving complex cryptographic hashes.
The technology behind most cryptocurrencies is known as a blockchain. The blockchain innovation hasn’t only made digital currencies possible, it has also pioneered useful innovations, one of which NFTs are a notable part.
How Do Cryptocurrencies Work?
After getting a basic overview of cryptocurrencies, most people still have many questions. That is to be expected, as the decade-old tech behind cryptocurrencies is somewhat difficult to comprehend to the average person.
There are many cryptocurrency technologies and even more cryptocurrencies. Cryptocurrencies like Bitcoin and Bitcoin Cash are based on the same core code, while others like Ethereum use a more efficient technology that opens the door to more opportunities.
However, every cryptocurrency runs on the same fundamental system called the blockchain. Understanding the concept of blockchain and how it works is necessary to understand the idea of cryptocurrencies and other digital innovations.
What Is a Blockchain?
A blockchain refers to a digital ledger that contains the record of a transaction, made publicly available to all computers on the digital network. A typical cryptocurrency blockchain contains a record of every transaction on the network and is open to anyone to view and verify.
As you may expect, the introduction of blockchain has made radical changes to record-keeping on the internet. Not only did it facilitate the creation of digital currencies, but it also pioneered the ownership of other digital assets like digital art in the form of NFTs.
Whenever you send or receive Bitcoins or some other form of digital currency, you’re not getting or losing Bitcoin. Instead, you’re registering the proof that you received Bitcoin into the blockchain.
The Bitcoin blockchain, like those of most other cryptocurrencies, is heavily cryptographic. The process of verifying that the transactions in the blockchain all add up is also known as mining.
While the Bitcoin blockchain predates any other blockchain technology on the market today, it’s not the best. Despite its popularity, it’s still a power hog, as it requires insane computational power to run.
Newer cryptocurrencies like Ethereum and Litecoin are modifying or replacing the blockchain algorithm that powers Bitcoin for more efficient alternatives that aren’t as power-hungry.
Due to Ethereum’s efficiency, there has been an influx of cryptocurrencies, tokens, and projects that are based on the Ethereum blockchain.
Some popular projects based on the Ethereum blockchain include decentralized cryptocurrency exchange Uniswap, Unstoppable Domains, and OpenSea, an NFT marketplace.
Best App for Investing in Cryptocurrency
If you’re just starting with crypto, you’ll need a cryptocurrency wallet and a trusted cryptocurrency exchange. Most crypto exchanges have a built-in wallet, but most people keep their wallets separate for diversification.
If you’re ready to start investing in cryptocurrencies, here are some of the apps that you should install now to kickstart your investment career.
- Coinbase
Coinbase is one of the best crypto exchanges there is in the crypto investment world. It provides a platform to buy and trade different types of cryptocurrencies. There are over 90 cryptocurrencies supported on Coinbase right now, and that number only continues to grow.
Since Coinbase is a full-fledged crypto-exchange that also deals with users’ money, they require you to be 18 years old before being eligible to create an account. You’ll also need a government-issued ID for verification to unlock the full functionality of the platform.
Coinbase earns by earning a small commission on your trades. You can trade Bitcoin, Ethereum, Dogecoin, and a host of other cryptocurrencies on Coinbase, but not every coin in existence.
A downside to using Coinbase is its hesitation to adopt new currencies. If you like to bag and hold new coins, you’ll be better off with another exchange, as you’ll have to wait for months before Coinbase integrates your preferred coin, if ever.
On the plus side, you get a $5 bonus when you sign up for a new and fully-verified Coinbase account. you can also earn rewards in digital tokens for completing specific activities on the platform.
- Binance
If you have an affinity for trading altcoins and other lesser digital currencies, you’ll be better off with Binance. Unlike Coinbase, it doesn’t have a curated selection of the best coins; just so many coins than you’ll ever need.
Binance features over 500 different digital assets on its platform, including cryptocurrencies and digital tokens.
Binance doesn’t only offer a platform to exchange cryptocurrencies, but it also has its cryptocurrency known as Binance Coin or BNB, which launched in 2017.
Binance is popular amongst crypto traders due to its low trading fees. Despite all the regulatory sanctions, Binance was able to maintain some of the lowest trading fees across all crypto exchanges available on the market.
If you’re living inside of the United States, you may want to try something other than Binance. Binance.US, the US-specific version of the exchange is severely limited and now pales in comparison to alternatives.
- Kraken
Kraken may not be a household name in the crypto investment world, but it’s a compelling option, especially if you’re based in the United States (but outside New York and Washington because it’s unavailable in those states).
With Kraken, you get access to over 90 cryptocurrencies for trading. This variety of options can make up for the loophole left by the limitations of Binance in the US to some extent.
There is a regular and a pro version of Kraken available to users. While Kraken Pro doesn’t cost anything more than the regular version, you’ll have to contend with a more complex interface that can’t exactly be described as user-friendly.
However, if you’re willing to dedicate the time to learning to use Kraken Pro, you’ll have access to more details while trading, and most importantly, significantly lower trading fees.
If you want to go by Trustpilot ratings, Kraken doesn’t seem like a great starting point for new investors. With just two stars out of a possible five, it’s evident that you’ll face some issues while using the platform.
- Crypto.com
Crypto.com is another crypto exchange platform that allows users to trade cryptocurrencies. If you live inside the United States, you should be trading with a VPN, as the US version of the platform is quite limited.
If you’re living outside the US, you will have access to over 90 coins with Crypto.com. You can also stake your coins to earn interest on them, a feature that’s usually unavailable on most crypto platforms.
Crypto staking lets you lock your cryptocurrencies for a specific length of time to earn on them. Of course, it’s unavailable to users from the United States.
However, you can still get the Crypto.com Visa Card and their Defi wallet from inside the United States, but you can’t access more than 22 cryptocurrencies at a time.
While this may make Crypto.com look bad, you’ll be hard-pressed to find a normal, well-functioning crypto investment app in the United States. Crypto.com’s restrictions are on the better side; wait until you see what Binance does.
- eToro
eToro is one of the few cryptocurrency exchanges that offer limitless crypto trading in the United States. This isn’t very surprising, given that they have a relatively small collection of supported cryptocurrencies.
Apart from the ability to invest in cryptocurrencies, you can also copy the trades of other traders on eToro. When you use the CopyTrader feature, eToro automatically runs the same trades as the trader you’re copying, but on your account.
If you use the non-US version of eToro, you’ll also have access to stocks and commodities in addition to cryptocurrencies. If you can find a way to verify your account, you can use a VPN to bypass the restrictions on the US version.
What is a crypto signal?
Crypto signals are trading ideas from skillful traders to buy a particular coin at a particular price and sell at the best time. Although they are many scammers claiming Crypto experts, don’t worry, we are going to reveal the best signal platform to join today and start making money from Crypto.
Best Crypto Pump Signals Telegram
As a novice or professional crypto trader, your definitive target is to make a profit from your trades and investments. Crypto signals offer an advantageous open door for both new and experienced traders to profit from their trades.
Cryptoguiders is one of the best, oldest, and recommended crypto signals groups. The team behind it has been trading Crypto since as far back as 2015.
It comprises expert who gives a relatively high accuracy rate. The team’s success rate is a remarkable 87%.
Users get trading alerts and the best coin to buy and HODL based on a combination of technical and fundamental analysis, as well as input from AI-based algorithms. In order to get a feel of the service, you can subscribe and join their telegram channel where you get signals.
All the signal posted on the group comes with a complete technical analysis. Their pattern of teaching makes it easy for beginner traders get to learn as they trade. Traders also get instructions on how to place the trade via their broker of choice.
You can join this VIP signal group with a one-time payment of $800. That means you don’t have to pay a dime again in the future.
Unlike other signal groups, the CryptoGuiders comes with a 30-day money-back guarantee.
What Is Cryptocurrency Mining?
If you’ve been following this article carefully, you should already know that the government doesn’t issue cryptocurrencies. Even in El Salvador where its legal tender, the government is technically surrendering its currency to a community of cryptocurrency enthusiasts.
Compared to regular money that’s written into existence by the central bank, cryptocurrencies are mined by individuals with powerful computers.
Mining involves the process of solving complex mathematical puzzles to help verify a transaction in the currency. Whoever verifies the transaction gets a reward in the currency in question.
The process of mining cryptocurrencies consumes a lot of processing power. This causes real-world impacts, as mining efficiency only reduces as the currency gets more popular.
At this point, it’s almost pointless to attempt mining a cryptocurrency like Bitcoin unless you’re willing to invest in extremely powerful computers, and you can also contend with a large power bill to break even if you’re lucky.
Fortunately, you don’t need to invest in all of these computers to own crypto. You can purchase cryptocurrencies with US dollars, exchange them for other currencies, or even sell them to get your money back.
Why Does Mining Use So Much Power?
When cryptocurrencies were first introduced, it was ridiculously easy to mine and get lots of cryptocurrencies. Since there are only a handful of miners, the mining algorithm was quite simple.
With the popularity of crypto, however, rewarding miners every so often will only introduce a ridiculous amount of the cryptocurrency, essentially devaluing it. To compensate for this, developers made it significantly more tasking to mine cryptocurrencies.
In today’s world, you need ultra-powerful computers with insane graphic cards for mining. You should also know that you’re essentially competing with millions of other powerful computers, making your chances of success very minute.
Conclusion
Cryptocurrencies are only a few years old, but they’ve surely come a long way. Today, it’s not only impossible to ignore them altogether, but it’s also borderline impossible not to own them.
Before investing in cryptocurrencies, it’s crucial to learn how they work and how they come by. This article explains some of the most confusing aspects of cryptocurrencies, including blockchain and mining.
One of the joys of investing in cryptocurrency is how you can do it all from your phone. With only a few apps, you can buy or sell coins from the comfort of your home.
If you’re looking for the best app for investing in Cryptocurrency, here are some of them. From Coinbase to eToro, you don’t need to look further for anything related to cryptocurrency investment apps.