Ever since 2019 had started, cryptocurrencies have been on their way to recovery. At first, all they really did is stop dropping. After that, the prices saw the slightest possible improvements, only for things to start catching momentum by the time April and May had arrived. Now, it is mid-July, and coins are well on their way of reaching their all-time highs, especially when it comes to Bitcoin, which has already gone past being halfway there.
Now, the price boom is doing wonders for the crypto industry, from spiking new interest, to driving adoption, and the bull run is drawing in more and more investors and traders with each passing day. Meanwhile, even massive companies are joining the industry, with some like Telegram and Facebook either already launching their coins, or preparing themselves to do so.
Simply put, everyone wishes to join, and with more of big companies doing so, more and more of smaller ones would decide to make that move as well. Soon enough, even the biggest crypto skeptics will have no choice but to join as well, otherwise, they will simply be left behind. For major firms, not being relevant is a death sentence, which is why most of them are probably already making plans to join the industry, even if they are not public about it.
However, when it comes to regular users of cryptocurrencies, regular people who might be interested in joining the world of digital coins, they might still be quite confused regarding even the basic things, such as how to obtain coins. Fortunately for them, this is a great time in crypto history to enter this particular industry, and there are more different ways of doing so than ever.
Even as recently as a few years ago, there were only a handful of methods, even those limited in some cases. Back in 2017, one of the only ways to enter the crypto space and buy some coins in the US was to do it through Coinbase, and only buy Bitcoin or Ethereum. Then, you could maybe exchange them in crypto-to-crypto exchanges, and purchase some altcoins. These days, the offerings are much greater, and the process is much simpler than it used to be. With that in mind, here are some avenues that you might want to take in order to get into cryptocurrencies.
1) Index funds
Index funds became a very popular way of investing in crypto and blockchain alike, and there are plenty of them available right now. Crypto20 is one of them, and it tracks a group of 20 different popular coins, including the top ones. Best of all, the fund is tokenized, and all you must do is to buy C20 token, and you can participate in the full index.
On the other hand, if you wish an actively managed fund, you might want to go for AMFEIX, which actively trades a selection of pairs, both fiat-to-crypto, and crypto-to-crypto. It also has an integrated wallet, meaning that the holdings will remain completely decentralized and secure.
Finally, the third option would be to get into a blockchain-oriented fund and invest into various crypto projects and firms. There are plenty of these out there, as well, such as Pantera Capital.
2) Social trading
If you are new to the crypto sector, and completely new, at that, your biggest problem right now is the lack of knowledge. In order to make a profit through social trading, you need experience and knowledge in regards to trading techniques, price behavior, and entire market mechanics. Not to mention tips and tricks from experienced investors who are often more than willing to share what they know.
This is why you must start by learning these things, and then start trading small, on platforms like eToro, where there are all kinds of investment instruments, including cryptocurrencies. Start small, and go slowly until you get the hang of it.
Then, there are derivatives. Here, we have crypto futures, CFDs, and many other ways of making a profit from price changes, which are quite many in the crypto space. Best of all, you don’t even need to own any actual cryptocurrencies in order to do it.
Crypto futures contracts are quite popular these days, and even Binance has decided to launch a margin trading platform with up to 20x leverage. Of course, this will significantly increase your earnings, but also the risk of losing your entire investment. If you choose to go down this path, you must be even more careful than with social trading, as the risks are quite higher. But, then again, so are the rewards.
There are numerous ways of investing in cryptocurrencies these days, and the fact that any newcomer can opt to choose any one of them is proof of how fast this sector is evolving. In a few more years, there will likely be countless others for a list such as this one: In truth, there already are, such as getting coins as a payment for your work, investing in ICOs, or even mining.
The sector is advancing at a rapid pace, and new things are being invented all the time. This is why it is more important than ever to get involved and understand how things work.