There is a lot of hype surrounding cryptocurrency trading at the moment, and there are a good many people who are falling for FOMO (Fear of Missing Out), yet there are many stay-at-home moms who are looking at this as a way of potentially making some excellent returns on their investments.
Bitcoin prices have sky-rocketed which is half the reason why there is so much interest, and this is half the reason why so many people fail and end up losing money as they don’t fully understand the whole concept of cryptocurrencies.
Buying into Cryptocurrencies
Before buying into cryptocurrencies, it is worth doing some homework first, so you understand how everything operates. This can help you stay away from the FOMO brigade and become one of the more successful crypto-moms.
There are steps to take and things you need to do to invest wisely and to safeguard your money. These are relatively simple, yet they need to be done so you can make the process of buying and trading your cryptocurrencies of choice much easier.
Do I Need Bitcoin?
As mentioned Bitcoin prices have sky-rocketed and to make any real returns is a long game, and it is not at the moment the investment opportunity it used to be.
That being said, Bitcoin is needed to purchase many of the other altcoins which are available, so as one of your initial steps, an amount of BTC will be required.
It should be noted that many other crypto-investors are looking for the next big coin to invest in. This is one reason some of the attention has gone away from BTC while investors look elsewhere.
As a rough guide to what coins might be up and coming, you can check their market capital. This shows a little of how they value yet it should not be one thing to base your investment on.
The term Altcoins is anything that is not Bitcoin and when you see later on purchasing these might not be as easy as purchasing BTC, but it is getting much more accessible.
This is where homework needs to be done, and this is why cryptocurrencies are ideal for stay at home moms as they can study the marketplace in depth. As you will see later, there are many up and coming coins that are creeping into the mainstream. One to spot is Skycoin.
The first step you will need to do it get yourself a wallet, or multiple wallets to store your coins. There are varying wallet types which come with their own advantages.
It can be possible to find a wallet which contains different kinds of coins, yet as an added level of security, it is better to use multiple wallets.
There are two wallet types: Hot Wallets or Cold wallets and the difference is only Hot Wallets store your information in an area where it can be accessed while you are online.
As they are always accessible, they can be prone to hackers, so it is better to use a cold storage wallet which stores information off-line.
Software Wallets are hot wallets which can be used on mobile devices. They are easy to set-up yet only as secure and safe as the device they are on.
Online Wallets are simple hot wallets and are not recommended. All of your information is stored on a third party server.
Paper Wallets are more secure as you print out your public and private keys and keep them somewhere very safe.
Hardware Wallets are in the form of a USB and must be plugged into a computer to make use of them. These are the most secure option yet you do have the cost of purchasing a good quality one that will prevent data loss.
Funding Your Bitcoin Wallet
As most of your altcoin purchases require BTC, you will need a BTC wallet from where to make your purchase.
To get BTC into your wallet you need to sign up for an exchange, you can then purchase from them and supply your BTC wallet address and pay by conventional methods credit card e.t.c.
Most coin exchanges support the most common altcoins so purchasing them is straightforward. Exchanges that sell coins you are interested in may be fewer in number yet that is changing rapidly (you will see this when you do your homework).
There are a few things to consider when signing up for an exchange such as the exchange location (check the site rules and regulations).
One of the main things is how long the exchange has been running as this helps protect you against scam sites. It is recommended to have an exchange in your own country.
Fees of the exchange should be checked as some charge more than others. This can make a massive dent in your stay at home trading and your profits.
What Happens Next?
When you have a secure wallet for your coins, and you have signed up to exchanges that deal in coins you are interested in.
You can then decide which coin or coins are likely to do well this year and be a great investment. Again your homework comes into play. The coin has to provide a service rather than just being a clone of BTC. They also have to go some way to fix a problem that does indeed need fixing.
Author: Peter McBryde