Let's talk about buying, selling, and holding crypto. The first thing to know is that cryptos are very different from other stuff that you invest in. When you buy gold, you actually get coins (or bricks) of the shiny metal. You can keep these coins safe in... a safe! When you buy a house, you actually get physical "possession" of it.
Cryptocurrency is generally defined as a "cryptographically secure digital medium of exchange." While there are many competing cryptocurrencies, all are different, and the differences can be quite vast. Bitcoin, the most valuable currency today, is the largest in market cap at over $230 billion. The total amount of cryptocurrencies is over $280 billion. Just in Bitcoin alone, there are over 17 million coins and over $100 billion in total market value. A quick rundown of other top cryptocurrencies: Ethereum: about $30 billion market cap Ripple: about $10 billion market cap Dash: about $6.3 billion market cap Litecoin: about $5 billion market cap Monero: about $2.2 billion market cap At the time of publication, Bitcoin's market cap was about $133 billion.
The reality is that buying crypto (as opposed to using it to create a digital token or other product) requires a higher level of commitment. You can't sell it for a little while or for a short period of time. You have to hold on to it. And unless you have a Bitcoin vault somewhere (which you don't, because they don't exist... yet) you can't really put your crypto coins into a safe. You can't even put it under your mattress. So the choice is really simple: Purchase crypto Store it in an online wallet (if you're worried about losing it) If you can find crypto that you like, then start researching it and studying it so that you understand it well enough to make smart decisions. If you don't like it at first, it will just get more interesting as it becomes more popular and useful.
While you don't actually get the coin itself when you sell gold or a house, you still get it. You get the "money" back. Cryptos, on the other hand, are an intangible good. They're not actually like money. They're in-game tokens. But they're tokens that have value for people who own a certain cryptos. People buy cryptos and sell them on different exchanges and platforms. These different exchanges and platforms are called "exchanges." Some of the exchanges and platforms are regulated by governments around the world, some are not. But they are all different from one another. Some charge fees to trade, some don't. Some offer guaranteed interest rates, some don't.
Cryptos are not physical. They're in computer programs that "store" and "move" that "metal." And they're (usually) not "real money." If the bubble pops, you'll be left with a bunch of worthless computer files. Note: I am not a financial adviser, and your investing decisions should be made with the help of a financial adviser who is properly licensed and works at a reputable brokerage. In theory, it's easy to buy, sell, and hold any type of crypto-asset. But in reality, buying, selling, and holding crypto is far more complicated. There are six different types of crypto-assets: Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, and Monero. How Do You Buy Crypto? This part is easy.
What is HODLing?
OK, back to crypto. Cryptos are literally computer code. In fact, there are hundreds of different types of them and new ones are being created almost every day. But as the old saying goes: When you come across a group of people who are willing to spend hours writing a computer code that solves a math problem, it is probably a pretty big deal. In the cryptocurrency world, the people building the networks where crypto transactions are stored are known as miners. The world's two largest cryptocurrency exchanges are in China. Both Baidu and Tencent are major shareholders in Binance and OKEx. So it should come as no surprise that both sites allow users to buy and sell cryptocurrencies with their messaging apps. On the other hand, Coinbase, the #1 U.S.
Crypto is not just a virtual currency, it is an alternative currency. It is also an asset class, and it is used for transactions. Therefore, these two are different, but not that different from each other. Cryptos are the perfect asset class for investing because they are volatile, largely unregulated, and they are immune to bankruptcy or mismanagement. You also have the opportunity to buy and hold a diversified basket of crypto, which are growing by the day. Be aware of one big caveat before investing in cryptos though: most of these coins are still very volatile and highly risky. Remember that Bitcoin has lost about 80% of its value over the last year. The most popular coins such as Ether and Ripple are also highly volatile.