How to Begin Investing in Cryptocurrency in 2021

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Read Time 8 Minutes

Hello All!

The rise of Bitcoin has become a digital phenomenon which has become of major interest to many of the world’s biggest investors. Some of the most prestigious banks have begun to hoard this cryptocurrency as they too realize the potential that these coins hold.

Recently, this amazing new investing opportunity has hit record highs of $61,000 surpassing a number that many would not have expected Bitcoin to have ever reach. It is evident that this coin may never stop growing and that this mythological “bubble” that some say is increasing may never pop.

The attention towards this coin has no doubt given it sustainable growth. So much so, that it is safe to say that cryptocurrency is here to stay and won’t be leaving any time soon. Because of that, it is of peak importance that you begin investing NOW so that you can reap the highest reward.

Why Invest in Cryptocurrency?

A number of the greatest investors of our time have gotten to where they are today purely because they had great foresight into the future. They were able to predict a massive change that the world would eventually undergo but just hadn’t happened yet.

Cryptocurrency has this same possibility to become one of the biggest digital markets of our time. Some of the more mainstream coins, including: Bitcoin, Ethereum, and Litecoin, have all become extremely prevalent in recent years and have even gained the eyes of important business and political leaders.

Elon Musk and his company Tesla for example, have confirmed that they have invested an enormous sum of $1.5 billion dollars into bitcoin, putting most of their faith into its eventual growth. That’s not even nearly close to describe the impact that Bitcoin and Ethereum has had on global markets.

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Governments including: Sweden, China, and the United States, have all begun to mine cryptocurrency, accumulating large amounts of digital tokens by producing large mining factories. Even governments have realized the total impact that this currency could have on the world and they want to make sure they get a piece of the digital pie.

If you’re still skeptical, the SEC has noticed Bitcoin as an official currency, making it backed by an actual government who regulates the economy. Ethereum is also growing as the predominate cryptocurrency of choice for buying and selling assets within the digital marketplace.

As you can probably see, the world is quickly evolving to accept this opportunity. We must prepare ourselves to adapt in the same way as this is no doubt one of the biggest turning points of the digital era, here’s how to begin.

How to Invest in Cryptocurrency

Before pulling the trigger to invest in any cryptocurrencies, it is important to distinguish which ones are actually safe to invest in.

There is a big danger when it comes to investing in other parts of the market as many of these coins haven’t registered with the SEC as an official currency. This in turn creates logistical issues which can put the token under much scrutiny and could hurt your profits.

XRP for example, is known as the copper of the crypto world, and has been a prevalent investment opportunity to many in the previous years. After many ignored warnings from the SEC, XRP is currently in a legal battle, where its founders are fighting to avoid receiving some serious punishments.

I don’t say this to try to detour you but more so prevent any possible roadblocks in your future. Some more suitable investments to look out for include: Bitcoin, Ethereum, and Litecoin, solely for the reason that they have gained so much traction around the world.

Stick to these cryptos and you will be in the most secure position for your future investments.

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So now that you understand this, how should you begin your crypto investments?

First, you will want to find a platform which allows you to purchase and sell cryptocurrencies freely. For this, I recommend using Coinbase, mainly because they have the largest user platform when it comes to trading cryptocurrencies, and they will soon become one of the biggest publicly traded platforms in the investing world as they have just filed for their direct listing to become a publicly traded company.

Once you have set up an account you will be able to invest in whatever token you choose but here is a critical point to remember…

Cryptocurrencies are EXTREMELY volatile.

The rapid growth of these currencies have also enabled the rapid decline of them as well, so make sure to take it slow! If Bitcoin for example is at an all time high, it is highly probable that there may be a massive sell off which can swing numbers to a $15,000-$20,000 decrease. Wait for the correct moment and then put in your money when you can, to experience the most gains during this volatile time.

Investing in cryptocurrency can get expensive at times and can be risky others, so how can you both invest in the most effective way while being secure at the same time?

There’s a new lucrative business which is on the rise which has allowed many to pull coins like Ethereum and Bitcoin out of thin air just by running a software, and its called mining cryptocurrency.

Investing in Cryptocurrency Through Mining.

I know it probably sounds too good to be true to be able to run a software and be able to generate digital money. At first, I was skeptical as well, but as I began to look into it a little more, I realized the huge potential behind this opportunity.

So what exactly is Cryptocurrency mining?

To simplify things, mining cryptocurrency is basically approving transactions that are occurring throughout a currencies blockchain. The blockchain is what coins like Bitcoin and Ethereum use to better track what is happening with the token as it gets bought, sold and traded.

Mining a cryptocurrency basically means that you will be running a software, utilizing mainly graphics cards to be able to approve these transactions at different rates depending on your graphics card’s processing power. As you could probably imagine, this can be extremely lucrative depending on what kind of hardware you’re running.

Let me give you some concrete numbers…

An Nvidia 3070 and 3060ti will on average make you about $6.00 per day if you are running your software 24/7 which is subject to change. Sometimes when there are more transactions occurring, hashrates will go up, causing your profits to also increase. These same cards in times of transaction prosperity can hit all time high rates of $10 per day.

Now imagine if you had 6 of those cards.

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Calculating that you will have $6.00 average per day over a month of 30 days will come out to a total payout of $900 just for running a software. You don’t even have to lift a finger to be able to dip your toes into what could be one of the biggest digital investment opportunities of this era.

The only cost that you will need to look out for are of course your initial principal payment and electricity costs for running the rig. If you would like to figure out your exact revenue and costs for setting up a rig like this, I recommend looking into a website called whatomine.com which does a phenomenal job depicting all costs associated with mining.

As you can see, regarding mining cryptocurrency, you can both have a secure investment and have no risk towards yourself if you decide to embark on this journey. Without having to invest countless amounts of your own money into cryptocurrency, you will effectively be able to create a machine that will do that for you.

Now more than ever is the greatest opportunity to indulge in this project. With cryptocurrency and hashrates on the rise, many are beginning to rush to build their own rigs to enjoy large returns.

If you have any questions regarding cryptocurrency, don’t hesitate to reach out as I enjoy having these conversations with you the reader! Also if you learned something or enjoyed what you read, a share to a friend is highly appreciated!

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Andrew Martinez, owner and writer of Minerva Money

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Published by Andrew Martinez

Owner and writer of Minerva Money, a blog on personal finance for the average person who is interested in taking control of their future and alleviating themselves from the burden of uncertainty. I have a deep passion for helping those around me with not only finance but mental well-being so if you have any questions or just want to talk don't hesitate to reach out!

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