- 9 May 2022
- Reading time
- 4 minutes
Methods of financial transactions are evolving. Besides hard currencies, digital currencies now shape the financial market. These are currencies like Bitcoin, Dogecoin, Ethereum, Solana, etc., which require no middlemen like banks or governments to restrict the buying, and the selling (or seller) of these currencies.
What are Cryptocurrencies and Crypto?
Cryptocurrency is a peer-to-peer system exchanging virtual currencies/coins through Blockchain technology. While there are pros and cons of investing in cryptocurrency, it has great prospects. The risk of investing in cryptocurrency makes people afraid, which is why this article is a guide through cryptocurrency investing books, how to get started, and an answer to the usual question: is investing in cryptocurrency halal?
Best Books on Cryptocurrency Investing
Before downloading the cryptocurrency investing app, readers of US-Reviews suggest these books for investing techniques:
2019's Cryptocurrency Investing For Dummies by Kiana Danial: If you'd like to understand the language of the top 200 currencies, this book could be the best for you. You can learn how to maximize your wallet, choose the right coins to invest in, and determine the best cryptocurrency investing sites with a low risk of investing in cryptocurrency.
2021's 'The Only Bitcoin Investing Book You'll Ever Need: An absolute beginner's guide to the cryptocurrency which is changing the world and your finances in 2021 & Beyond': This cryptocurrency investing book by Freeman Publications' will open your eyes to what is now Digital Gold. It details the financial power of Bitcoin and how you can utilize the global coin for your good. You may want to start with learning how to automate Bitcoin purchases on page 66.
2021's 'Crypto Investing Guide: How to Invest in Bitcoin, Defi, NFTs, and More' by Ian Balina: This is one of the best books on cryptocurrency investing. Knowledge is power, and this book will let you know how to hack decentralized finance. It will also teach you how to identify smokes, avoid them, and make profitable crypto investments.
Investing in Cryptocurrency vs Stock
The choice of investment between these two depends heavily on your investment plans. Stocks are equities that you buy from a company to own a part of that company, while cryptocurrencies are virtual currencies that you buy from cryptocurrency investing sites or apps. Investing in cryptocurrency vs stock is an easy choice when you know your projection. While it can bring you fast profits, its high volatility can be a turnoff. In addition, the crypto future is uncertain compared to stocks; many traders have cryptocurrency investing techniques to help them maneuver the digital economy. However, with Stocks, the company does all the work.
Stocks promise a long-term investment with slow but solid profits, while crypto offers fast but erratic payouts. If you are open to taking risks, you can try your hand at it.
Pros and Cons of Investing in Cryptocurrency
While crypto seems awesome, there are a few investment risks. There are pros to it too:
● Information Privacy: Anything you buy with a merchant remains secure and private.
● Transfers are instant since you don't need banks to authorize your transactions.
● No Middlemen: Cryptocurrencies operate in a decentralized market with no currency monopoly by governments.
● With the increase in demands, values rise, which means you can earn more within a short time.
● People perform illegal activities since their records will be extremely difficult to track.
● It has a high loss risk, and this mostly happens when you are careless with your wallet address.
● High Volatility: The value of a coin may change based on low demand. The currencies are susceptible to market demands, trends, and news.
● You may be attacked by cybercriminals, especially if you're careless with your private data.
● Cryptocurrency is not halal for Muslims. The Sharia law is quite strict regarding the use, gain, and investing of money. The key ruling is that once any financial exchange does not have a physical form and actual value, it is deemed not halal. Cryptocurrency is a virtual currency and thus, falls short of those qualities. Since it has no actual value, speculations and uncertainty become the order of the day. Therefore, it shares a resemblance with acts prohibited by Sharia law such as gambling.
Cryptocurrency Investing Techniques
Investing in crypto can be tricky as the market moves fast enough to give you whiplash. You can use some of these techniques as a guide:
Invest What You Can Afford
The most important aspect of investing in digital currencies is not investing if losing the money will hurt your financial health. The digital currency market is a world of wins and losses. You can protect yourself from loss through smart investments.
Do Not Invest All Your Money in a Coin.
One of the mistakes traders make is investing in one currency. There are over 5000 digital currencies. You can invest in many digital coins rather than one to avoid disappointment.
Use The Right Wallet
Wallets are your crypto purse. They are virtual storage to save your coins offline or online. Experts recommend saving at least 70% of it in an offline wallet to protect your money against hackers. It is also essential to have coins in your online wallet to ensure easy trading.
Through these, you can invest in different coins of your choice. You may even decide to limit your activities to buying and selling, which is also lucrative.
To start investments, study some of the cryptocurrency investing books provided and download a cryptocurrency investing app. You can start enjoying the "digital gold" right from a corner of your room.