Discover Crypto Wallets Suited For Your Needs
The top cryptocurrencies have strong financial upsides. Read ahead for tips, terms and all you should know about investing in cryptocurrency in 2021.
Times are changing faster than many people in the U.S. expected. Changing times means changes in the financial world as well. Working virtually from home to earn your living and finding new ways for investing your money have become the new normal in 2021. Cryptocurrency began its rise in popularity in 2009 but has seen an increased surge in recent times. Investing in cryptocurrency has serious potential for your portfolio, but what is cryptocurrency and why has it become so popular today?
The top cryptocurrencies have strong financial upsides. Understanding common crypto terms and knowing how to get a referral bonus for crypto apps are two effective strategies for getting the most out of your crypto investments. Read ahead for tips, terms and all you should know about investing in cryptocurrency in 2021.
What Is Cryptocurrency
Cryptocurrency changed investing perspectives and how many current financial transactions are handled. This digital form of currency invented in 2009 by Satoshi Nakamoto is only available online. Cryptocurrency is used to purchase, trade, sell and invest for tangible products and financial gains. Satoshi Nakamoto is a pseudonym and the real name of the original cryptocurrency creator is kept a secret from the general public. Even though Bitcoin was the first form of cryptocurrency created it is still an impact player on the crypto market today. Numerous cryptocurrency companies are also in business in 2021, each having its own proprietary crypto token or coin. Cryptocurrency employs an advanced and decentralized technology referred to as blockchain, which is utilized to conduct financial transactions securely and in secret.
Why Has It Become Popular
The rapidly rising popularity of cryptocurrency has many investors questioning its reliability and staying power. Why has cryptocurrency become so popular? Many global investors expect Cryptocurrency to imminently become the primary form of currency around the world. This viewpoint is helping elevate crypto popularity with many investors. In turn those investors are purchasing large amounts of cryptocurrencies prior to their prediction of drastically increased prices becoming a tangible reality.
The blockchain system also keeps cryptocurrency transactions largely in the dark. The crypto world proudly maintains no association with the central banking system, making it a financial haven for off-the-grid investments, dark web, black market and criminal activates alike. Another aspect of cryptocurrency responsible for boosting its popularity is its generally low fee structure. Crypto transaction fees are often much lower than those charged by traditional investment and banking operations.
Finally, the blockchain technology used for cryptocurrency offers more than privacy. Blockchain utilizes enhanced security measures to protect the identity of all investors. Further, blockchain almost completely eliminates the ability to hack into the crypto system, adding a deeper level of security for investors.
Numerous other top cryptocurrency companies emerged on the crypto scene since Bitcoin was introduced to the world by the pseudonym Satoshi Nakamoto in 2009. Each company possesses a proprietary crypto token/coin. Five top performing cryptocurrencies, their New York Stock Exchange (NYSE) tickers (when applicable) and all respective crypto tokens/coins are:
Bitcoin Cash (BCH): Simple Ledger Protocol (SLP) Tokens
Ethereum: Ether (ETH)
Tether: U.S. Dollar (stablecoin)
Litecoin (LTC): (Scrypt)
Ripple (XRP): XRP Token
Referral Bonus for Crypto Apps
Cryptocurrency companies are using various promotional referral bonuses to attract new investors to their businesses. For example, a current crypto investor might send you a referral link/code for which you both receive bonuses. Another source of referral bonuses for crypto apps might come from any number of the crypto-friendly affiliate financial websites online today. Referral bonuses are also granted for opening an account with certain companies. Some of the hottest referral bonuses for crypto apps today include:
Crypto.com $25 bonus referral link
Up to 8.6% APY & $250 crypto bonus via BlockFi
$10 free bitcoin via Coinbase (conditions apply)
$100 in bitcoin via OKCOIN
Are you looking to know all you need to know about investing in cryptocurrency? Hot tips are available to help you make the best crypto-investing decisions going forward. Tip #1 is to learn the meaning of as many common crypto terms as possible. Understanding the lingo helps you understand valuable investments strategies and numerous mistakes to avoid. Tip#2 is to not invest in cryptocurrency simply because it is a relatively new and rising trend. Invest in a cryptocurrency because it adds value to your portfolio, and not because of its name recognition or promotional bonuses. Is cryptocurrency taxable? The U.S. Internal Revenue Service (IRS) defines cryptocurrency as property, making it susceptible to capital gains taxes. Tip #3 is to become educated about IRS-regulated laws regarding property investing.
Cryptocurrency has its share of risks. The market is volatile and while some companies are expected to last, the longevity of others is unknown. Diversification applies to cryptocurrency investing the same as it does to other investment strategies. Diversifying your crypto portfolio is Tip #4. Tip #5 is to use secure cold wallets instead of riskier hot wallets, while also demanding to see a company’s white paper prior to making investments. A white paper document provides information about company services and products. A white paper also provides information on government legislation/policies pursuant to the company and cryptocurrency in general.
Familiarizing yourself with common crypto terms helps you plan better investment strategies and better understand the crypto market. Crypto terms such as address, airdrop, algorithm, altcoin and ASIC minor are all commonly used. The definitions of block explorer, block height, block reward, cold storage, DAO and elliptic curve should all be common-knowledge to you before you start investing. What is an ERC-20 token? What is a genesis block or a market cap? The more crypto terms you know the better your investments in cryptocurrency will potentially pay off.