Bitcoin falls to 15-month low due to slump in virtual currency market
Bitcoin prices continued their long-term decline, dropping to around $67,000, the lowest level in about 15 months.
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When you’re ready to buy your first cryptocurrency, it’s basically a two-step process. First, you’ll need an account with a broker selling cryptocurrencies or a crypto exchange such as Coinbase or Gemini.
It’s simple. The next part is more difficult. The task is to choose a cryptocurrency and decide on the amount to invest.
Especially for beginners, we recommend starting with Bitcoin. (Cryptocurrency: BTC). It may seem expensive, but despite the recent economic downturn, its price is still around $66,000 as of March 29th. However, you can purchase small portions of 1 Bitcoin. If you want to invest less than $100, you can do so. If you want to buy crypto investments directly in your brokerage account, you also have the option of investing in a Bitcoin ETF.
The advantage of Bitcoin is that since it occupies such a large share of the market, its performance is often similar to that of the overall cryptocurrency market. The total value of the cryptocurrency market is approximately $2.3 trillion, with Bitcoin accounting for $1.3 trillion (58%).
Altcoins are a term used to describe all cryptocurrencies other than Bitcoin, which can sometimes outperform Bitcoin and are popular among investors looking for higher returns. But altcoins also come with far more risks. Because they are much smaller than Bitcoin, they tend to be more volatile, and for every one that performs well, several others lag behind the market. Consider investing in Bitcoin first. After that, you can add altcoins at any time.
Be cautious about the amount you invest in cryptocurrencies. A good rule of thumb is not to invest money you can’t afford to lose. We also recommend dollar-cost averaging, which involves investing small, equal amounts at regular intervals, rather than investing all of your investment plan at once. This helps protect you from cryptocurrency volatility. Even if the price drops after your purchase, you haven’t used all your cash right away, so you still have money left to invest.
Lyle Daly has a position in Bitcoin. The Motley Fool has a position in and recommends Bitcoin. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner providing financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
