We’ve just launched our new investment module, developed with Bitpanda, and we are super excited! Our latest addition to iCard Digital Wallet’s functionalities will broaden your experiences and bring new opportunities to make the most of your finances.
Now it’s time to bring light to cryptocurrency investments and what it means to become part of the crypto world.
What are cryptocurrencies, to begin with?
You’ve probably heard of Bitcoin, Ethereum, and Tether, but there’s more to cryptocurrencies than the coins’ names. They are digital currencies (assets) with a decentralised nature, where individuals can transfer funds without the interference of a central authority that controls the transfers. “Crypto” means “secret”, which references the security and protection of both transactions and participants. Cryptocurrencies run on this decentralised network, which is based on blockchain technology. It contains blocks of information with sets of transactions that are independently verified by the validators on the network. Besides being safe and secure, blockchain technologies lower transaction costs.
The essence of investing in cryptocurrencies
Whether it’s your first time diving into the crypto world or you have already come a long way, you’re there for a reason – the only thing better than earning money is earning more. And in years of inflation and high prices, crises, and volatility, it’s important to diversify your funds.
Researching the cryptocurrencies and their varieties is the first and foremost step you need to take before you start investing so you can find the right asset for you. Clarifying your purpose and goals for such investments will pay off in the long term.
If you aim at stacking a rich portfolio with different cryptocurrencies, it’ll be able to track the market more closely, thus balancing out your investments. However, overcomplicating it won’t help because diversifying your portfolio requires a proper understanding.
Investing via iCard starts from as little as €1, so you can start small and gradually increase your investments and collection over time. Keep in mind there are certain transaction fees determined by Bitpanda, which depend on each currency. Having an eye on the falling prices is essential, too – the lowest ones don’t always mean a good investment.
Knowing your crypto glossary will always do the trick to help you understand the market – terms like “altcoin”, “shorting”, “fork”, and “ICO” are standard for the industry.
Is it worth it?
The subjectivity of this question presumes you should answer it yourself, based on the layout of the advantages and disadvantages of cryptocurrency investing, which we prepared for you.
Generally speaking, the pros of having a crypto portfolio cover its:
- speed and cost-effectiveness;
As we mentioned above, you can diversify your portfolio and get more stable returns if you combine assets with less price correlation. iCard and Bitpanda offer you more than 200 cryptocurrencies to choose from.
Cryptocurrencies have become more and more accessible over the last few years. You just need a good internet connection and your iCard Digital Wallet to start investing.
Being decentralised means that banks and institutions don’t control the coins’ worthiness, which makes crypto immune to government manipulation.
Your crypto assets are highly secured at Bitpanda’s cold storages that aren’t connected to servers or computers in order to protect you and your funds at the most. Your private key is safely managed and safeguarded, too.
With iCard Digital Wallet, you get a clear transaction overview, and it’s up to you how you control what you buy or sell.
It’s inevitable to have downsides, so some of the cons include the cryptocurrencies’:
- risky nature;
- impact on the environment.
The market is volatile, and cryptocurrency investments carry risk. The best thing to do is invest what you can afford to lose. Even if you understand the market, you still shouldn’t underestimate it and consider it “easy”.
Contrary to what you expect, cryptocurrencies are pseudonymous instead of anonymous. They leave a digital trail that the Federal Bureau of Investigation can track and decode. Other government authorities might interfere, too.
The power consumption supporting blockchain technology is massive, so only the future can tell if crypto investing can become more environmentally friendly.
Are you curious to know how to start investing via iCard?
We’ve got you covered! As it’s our newest feature, we know it might be confusing to get started. But we made it as simple as it can be. We’ve added a new menu – “Invest”, where you can find your crypto portfolio and all your transactions in one place. From there, follow these steps:
- Tap on “Get started” and complete your enrollment.
- Tap on “Buy” and select the asset you want to buy.
- Enter the amount you want to invest and choose the account you want to invest with*.
- Review the details and confirm.
*You can invest in your local currency, which will be converted into Euros with the respective exchange rate.
When it comes to the future of digitalisation, cryptocurrencies are here to stay. Remember that you and all their users add value to such assets, so make sure you choose wisely in which coins you invest. Our journey to the crypto world begins today, so stay tuned for many more upcoming tips and tricks!
Download iCard to start investing today:1