How to Invest in Cryptocurrencies

Cryptocurrency investment has many of the same risks as other types of investment. Just as the stock and forex markets are highly volatile and susceptible to fluctuations at any time, the cryptocurrency market, particularly the market leader, bitcoin, is widely recognized for its high level of volatility and fluctuation.

Although bitcoin is the most popular and widely used cryptocurrency in the world, there are tens of thousands of other crypto tokens on the market today, according to Coinmarketcap statistical data. However, having a thorough grasp of how the global crypto market operates — including the best currency to invest in, the best time to invest, the best platforms to buy them on, and so on — is crucial when making a choice.

As a result, this article will cover the most important things you need to know before investing in cryptocurrencies, including the many types of them, the most well-known ones, which are often referred to as “blue chips,” blockchain networks, and the risks associated with cryptocurrencies, to guide you along the process.

Types of Cryptocurrencies

All existing cryptocurrency tokens fall into one of three categories of cryptocurrencies. The three main types of cryptocurrency are Bitcoin, Altcoins (alternative coins), and stablecoins. These cryptocurrency types operate in different ways, their price changes differ, and the technology underlying each of them differs on certain levels.

Bitcoin

Bitcoin is both a cryptocurrency and a type in and of itself. This is often recognized as the market leader for all other cryptocurrencies since it was the world’s first coin established to combat the early 2000s global financial crisis and to seize power from centralized institutions. It has also gained widespread recognition and acceptance among millions of people worldwide.

Although it has some basic features like other crypto coins, Bitcoin (BTC) is the only cryptocurrency token in this category. As a result, other currencies than BTC fall into other categories.

Alternative coins (Altcoins)

Alternative coins (Altcoins) are any cryptocurrency other than bitcoin and stablecoins. They get their title because they are alternatives to Bitcoin and conventional fiat money. Alternative currencies, just like bitcoin, are susceptible to volatility and rapid price movements. This sort of crypto might take numerous forms depending on its intended use. The first altcoin, Litecoin, was released in 2011, and there are now tens of thousands of them, with a total market valuation of around $500 billion.

The largest alternative cryptocurrency today is the Ethereum token (Ether), which is also the second-largest cryptocurrency globally, behind bitcoin (BTC).

Some other examples of alternative coins include:

Polygon (MATIC)

Ripple coin (XRP)

Mr Mint (MNT)

Solana (SOL)

Dogecoin (DOGE)

Shiba Inu (SHIB), and many more.

Stablecoins

Stablecoins, as the name indicates, are cryptocurrencies that are not always susceptible to the significant volatility that bitcoin and other altcoins undergo. They are relatively stable and allow crypto users to track the precise amount of assets they own, as well as provide a fairly simple way for them to exchange their crypto holdings for fiat currencies.

These are cryptocurrencies whose prices are intended to be linked to a reference value. Fiat currency, exchange-traded assets, or another cryptocurrency may be used as reference assets. However, stablecoins can be related to traditional currencies such as dollars, pounds, and Indian rupees. They can also be linked to commodities such as gold and silver, but the US dollar backs the most popular stablecoins, such as USDT, USDC, Pax Dollar (USDP), and so on.

What are the Most Famous Cryptocurrencies?

These cryptocurrencies are also known as “blue chips.” The phrase “blue chip” comes from the game of poker and some other gambling games. Blue chip cryptocurrencies, just like “blue chip stocks” have industrial standing, excellent reputations, level of decentralization, founders’ reputation, increased liquidity, low volatility, and large market capitalization.

When evaluating all cryptocurrency tokens on the market, coins with these characteristics are few, and they are always at the top of the list on all market tracking websites. As a result, we will list the top five cryptocurrencies in the crypto/blockchain industry that have established themselves as institutions and have a greater market valuation.

Some coins regarded as blue chips are:

Bitcoin

Ethereum

Binance Coin (BNB)

Ripple (XRP)

Cardano (ADA)

Bitcoin has persisted over a decade, longer than any other cryptocurrency, owing to its role as the original cryptocurrency and the notable founding father of blockchain technology.

As for Ethereum which was created in 2015 — it is the most robust and active DeFi blockchain network, and its explosive growth has inspired numerous companies and individuals to create new products based on its technology.

Risks of investing in cryptocurrencies

Cryptocurrencies have become increasingly popular over the previous decade, and practically everyone is talking about them or investing in them. There are thousands of cryptocurrencies and several cryptocurrency exchanges, with more being launched on a regular basis.

That’s a lot to handle, particularly for new investors. To know the biggest risks of cryptocurrencies and how to safeguard yourself from them, read our blog post on How to Guard Against Cryptocurrency Risks

Ways of getting cryptocurrencies

From Crypto Exchange

To buy cryptocurrencies, one can register with cryptocurrency exchanges. This is one of the easiest ways to get cryptocurrency assets, as most exchanges enable customers to purchase them directly using fiat money and then convert them back to fiat money for withdrawal convenience.

Examples: Binance, CoinDCX, ZebPay (Centralized), or PancakeSwap, UniSwap (Decentralized)

Through Mining

Although the majority of individuals find that mining cryptocurrencies, especially bitcoin, is a tiresome opportunity, many people also utilize this method to make money in cryptocurrencies for themselves. The reason why people don’t usually mine coins like bitcoin is because of the high costs and technical knowledge required. That is why Mr Mint is dedicated to giving people access to earning from real-world crypto mining with as little as $100.

From ICO/IEO/IDO

Initial Coin Offering, Initial Exchange Offering, and Initial Dex Offering are referred to as ICO, IEO, and IDO, respectively. These are the most common ways of investing in a cryptocurrency project before it goes public on exchanges. Participants in these offers tend to purchase crypto tokens at lower prices than the listing pricing.

Peer-to-peer (P2P) Exchange

Peer-to-peer (P2P) trading is a form of cryptocurrency purchasing method that enables buyers and sellers to do direct business with one another without the use of a centralized intermediary. This might be done offline through a known person or online with an unknown individual.

AirDrop and Bounty Promotions

Most cryptocurrency projects, especially new ones, use airdrops and free tokens to raise awareness. An exchange may also conduct an airdrop to build a huge user base for a project. Participating in an airdrop or bounty can earn you free coins that you can use to make purchases, investments, or trades.

Tools you need before getting started

Before getting started in cryptocurrencies, there are some important tools you need to be conversant with. They include:

Cryptocurrency wallets:

Wallets enable users to store, send, and receive cryptocurrency tokens. Crypto wallets are classified into two types: custodial and non-custodial. A custodial wallet is a cryptocurrency exchange where you place your assets in the hands of someone else. A non-custodial wallet, on the other hand, is a form of wallet that allows you to keep your private keys. However, it is important to know the type of wallet to use at every point in time.

The best wallets we recommend are: Metamask, Trust Wallet.

Charting tools:

You may use these tools to view the current prices for all cryptocurrency assets. For this reason, programs like Coinmarketcap and CoinGecko are commonly used.

Social Media Platforms and News sites

Social media sites significantly influence the price movements of crypto assets. One must be well-informed in the most recent events taking place in the industry and constantly make sure to get information from reliable sources. Some of the most popular social media platforms and news websites for accessing real-time updates are Twitter, Telegram, Medium, Reddit, Cointelegraph, and so on.

Closing Thoughts

The reality is that investing in cryptocurrencies is not for everyone. Yet, the existing financial system is already being revolutionized by these new methods of payment, so sooner or later, nobody can escape embracing them.

For conservative investors, this sort of investment is most likely not a good choice considering the volatility of cryptocurrency values and other risks involved. However, a cryptocurrency with real-world backing, such as Mr Mint, or one of the blue-chip cryptocurrencies, might be the best choice for an investor ready to embrace the future of payment.

To know more about the Mr Mint project, log on to www.mrmint.io

Important Dates:

Private Sale: 2nd April — 15th May 2022 [CLOSED]
Pre Sale: 16th May — 30th June 2022 [CLOSED]
Public Sale: 1st July — 31st December 2022 [LIVE]

Join us on social:

Telegram: Mr Mint_Official Ann
Twitter: @MrMint_Official
Instagram: @MrMint_Official
Facebook: @officialmrmint
YouTube: Mr Mint [MNT]