Erin Benson
June 11, 2021
• 2 Minute Read
Investing can always be risky, but investing into a decentralized digital currency takes risky to a whole new level. Right now, more than 10,000 different Cryptocurrencies are traded publicly. The total value of all Cryptocurrencies in May was more than $1.7 trillion, which is actually down from April where the market topped $2 trillion in value for the first time. Bitcoin was a major factor in that record breaking month where it was trading just over $61,000.
Is Crypto a good investment? Sure, it may go up in value, but a lot of investors see Crypto as more of a speculation as opposed to an actual investment. Cryptocurrency investing is the next big thing and these new apps make it even easier to get involved.
While there are several platforms to choose from, Etoro is very popular. It’s slogan of “Digital Currencies at Your Fingertips” has allowed them to connect with over 20 million traders. They also offer a program called CopyTrader where you can copy a successful trader’s investment strategies. If someone copies your investment strategies, you will receive compensation. If you want to copy a trader, it will cost you. One last thing about Etoro, trades are made by dollar amount rather than unit of an asset. This means that you don’t need to buy whole units of an asset; you can buy just a fraction of cryptocurrency, starting from a minimum of $25 per trade.
Kraken is one of the original trading platforms and they have a good selection of coins and tokens to trade and invest in. They “put the power in your hands to buy, sell and trade digital currency.” Their mission is to accelerate the adoption of cryptocurrency so that you and the rest of the world can achieve financial freedom and inclusion.
Robinhood is also gaining popularity as they offer commission-free investing. They offer fractional shares so you can invest in thousands of stocks with as little as $1. Some other perks to investing with Robinhood is you can invest any amount you choose; build a balanced portfolio and you can trade in real time. They believe the financial system should be built to work for everyone, which is why they create products that let you start investing at your own pace, on your own terms.
Crypto.com is said to be the world’s fastest growing Crypto app. They have 10million+ users buying and selling over 100 cryptocurrencies at true cost. They encourage you to grow your portfolio by earning up to 14% interest on your crypto assets. They are also coming out with a metal Visa® card soon, so keep your eyes out for that!
When comparing investing crypto vs. stocks there are several factors you should look into. Comparing risk and reward is going to be the most important. Another factor people look at is that cryptocurrencies do not give any legal entitlements to holders whereas stocks do. Investing into Cryptocurrency seems to be a good fit if you have some extra funds and are looking to diversify your portfolio.
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