Want to invest in crypto? Here's what you need to know
May 4, 2021. Summarized by summa-bot.
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ISTANBUL, TURKEY - APRIL 16: A woman walks past the entrance of a cryptocurrency exchange office on April 16, 2021 in Istanbul, Turkey. Turkey's Central Bank announced a ban on the use of cryptocurrencies and crypto assets for purchases, directly or indirectly to pay for goods or services. The announcement comes as Turkey's crypto market has boomed over the past few years. As the Turkish Lira has slumped, many people have looked to cryptocurrencies to shelter against inflation. Cryptocurrencies gained traction globally this week after cryptocurrency exchange Coinbase launched on the New York Stock Exchange. (Photo by Chris McGrath/Getty Images)
Cryptocurrency is having a moment.
In 2020, the market of potential bitcoin investors grew to 32 million people in the United States, up 52% from the year prior, according to a survey by digital currency asset management firm Grayscale Investments, published in October.
"Because it's been around for longer people are starting to accept it," Gavin Smith, Group CEO of crypto investment firm Panxora, told CNN Business.
"That's led to professional involvement because now they understand a bit better how to manage the risk," Gavin Smith, Group CEO of crypto investment firm Panxora, told CNN Business.
There is a wide variety of digital tokens and other crypto-related projects that one could invest in — with more emerging all the time as the so-called decentralized finance (or "DeFi") movement gains traction.
Bitcoin is also the most liquid cryptocurrency, which should make it easier for investors to buy and sell with relative ease, compared to smaller, more niche coins with less demand, Farrokhnia said.
"Dollar cost averaging is a great tactic for investors who want to invest and hold digital currencies over the long term," Smith said.