Everyone and their grandma is talking about cryptocurrency these days. It’s not always easy to know where to start investing, though. You can’t walk into a bank and say, “I’d like to exchange my dollars for 3 Bitcoins, please!” So how do you wade into the cryptocurrency market?
There are cryptocurrency exchanges just like there are stock exchanges. They are a little bit different — you can use them to buy, sell, and trade, though the regulations and legal rules are not as stringent. You can own a coin or you can have a CFD, or contract for difference, which means you own a position with a broker.
There are a multitude of cryptocurrency exchanges from which to choose, and each one has its pros and cons as far as fees paid to brokers and fees paid to the currency’s originator. Once you find the exchange that is right for you, follow the same basic principles of investment you always have — diversify, don’t go all in all at once, and don’t make knee jerk investment reactions.
Learn more about the many investment opportunities in cryptocurrency and crypto exchanges from this infographic. Are you ready to invest in the next wave of hot new commodities?