How to Invest in Cryptocurrency

Table of Contents
What Is Cryptocurrency?
Understanding Cryptocurrency Investing
How Cryptocurrency Investing Works
What to Know Before Investing in Cryptocurrency
Frequently Asked Questions
Is Cryptocurrency a Good Investment?
How Can I Invest in Bitcoin?
How Much Money Do I Need to Buy Cryptocurrency?
What Is Cryptocurrency?
Cryptocurrency is digital money. This type of currency uses blockchain technology, which is considered secure because it is capable of establishing distributed consensus even among untrustworthy parties. Cryptocurrency blockchains resemble old-fashioned bookkeepers' ledgers, except that the ledger is electronic, and everyone with access to the ledger can also be the bookkeeper.

Investors worldwide have invested and are starting to invest in cryptocurrency. Though Bitcoin is likely the best-known digital money thousands of cryptocurrencies already exist.1 Cryptocurrency can be considered one of the newest and most exciting asset classes available to investors.
Understanding Cryptocurrency Investing
When you think of investing in cryptocurrency, you might think about buying and holding one or more crypto coins. Buying cryptocurrency directly is probably the most common way to add crypto exposure to your portfolio, but when it comes to investing in cryptocurrency, you have a few different options:
Buy cryptocurrency directly: You can choose to directly purchase and store one or more cryptocurrencies. Your options range from the most established digital currencies like Ethereum and Bitcoin to virtually unknown coins that are newly released in an initial coin offering (ICO).