The Ripple Effect Of Cryptocurrency
Crypto education continues…just paid 38% ter fees to test out possessing Ripple…tuition paid. What a process!
Worried my professional identity wasgoed beginning to blur the line inbetween a financial advisor and a crypto-crazy, I had planned to take a pauze from the world of cryptocurrency and Blockchain after cashing te my initial investment and letting the earnings rail. That wasgoed my intention… however, after having numerous friends ask mij about Ripple (XRP), I determined to learn how to invest te XRP and thus proceed my proefneming on the next level of cryptocurrencies.
Before I go any further, let’s make one thing clear…I am not recommending Ripple spil an investment, strafgevangenis am I recommending any cryptocurrency spil an investment for that matter. Spil I’ve explained numerous times te my blogs, the purpose of my experimenting te the cryptocurrency is to learn about investing, possessing, storing and the nuances of cryptocurrency so I can hopefully provide resources to help readers determine, with the consultation of their financial advisor, how to best participate te the asset class should they chose to.
Prior to making an investment te XRP, I had already spent time researching Ripple and had a general understanding of how it differs from other cryptocurrencies, but I never invested te it, mainly because it wasn’t spil effortless spil the BTC, LTC and ETH. Plus, it’s bot a relatively unknown cryptocurrency to the masses. But, Ripple shows up to be gaining te popularity, and I anticipate more investors will learn about XRP and have questions. Today’s postbode is not to provide an explanation of Ripple but to highlight the inefficiencies of investing te lesser-known cryptocurrencies.
Spil I mentioned, investing te XRP is not spil effortless spil the cryptocurrencies found on Coinbase. Presently, XRP is not available on Coinbase, which means you need to go out to another exchange to purchase it. I chose to use Kraken-after a little research, I determined this wasgoed a reputable exchange to purchase my XRP. There are a number of other exchanges you can purchase XRP on, so do your research! The process of opening an account with Openbreken took some time, there are different levels of verification to go through so don’t expect to sit down and have your Kritiseren account ready to go ter Ten minutes. For the type of investing I planned to do, I verified my account through level Three because I thought it would permit mij to deposit USD via ACH to make my investment. I wasgoed wrong, ACH wasgoed not available-I could only wire te USD.
Since depositing USD wasgoed not an option (I didn’t want to mess with wiring money, especially since my investment wasgoed going to be nominal), I determined I would use BTC (on Losbreken it’s XBT) to make my XRP investment. Te order to do this, I purchased some BTC on Coinbase and after it wasgoed ter my Coinbase wallet, I sent it overheen to my Openleggen BTC/XBT wallet. Recall, Bitcoin takes approximately 6 verifications for it to be “available”, which means it took about an hour before I wasgoed able to purchase my XRP. Once I purchased my XRP I transferred it off Losbreken to my offline wallet for safekeeping. Reading this, it may not seem like it, but purchasing XRP wasgoed fairly the process, especially since I wasgoed doing it inbetween meetings with clients and getting actual work done during the day. It literally took mij all day to finish this investment-if I had a duo of hours to kill, I most likely could have finished my XRP investment much sooner, but like most individual investors just getting into this space, I have a career and family that requires my attention.
Here are my main takeaways from my investment ter Ripple:
- It’s expensive. My tuition for this education wasgoed $100. After paying Coinbase to buy BTC, transfer it to Kritiseren, purchase XRP, and then transfer to my offline wallet I ended up with 79.98 XRP, which wasgoed about $62. That’s a 38% toverfee. 38%. Yes, the toverfee would be a smaller percentage had I invested more, but again this wasgoed an proef. Should XRP collapse, I won’t miss the $100. Nonetheless, investing cryptocurrency is not cheap for smaller individual investors.
- It’s time-consuming. Spil I mentioned, it takes time for your fresh account on an exchange where XRP can be purchased to be established and verified. I then had to purchase BTC on Coinbase, wait for it to lodge, transfer BTC to Kritiseren, wait for it to lodge, purchase XRP, wait for it to lodge, and then transfer my XRP off Openleggen. If my motivation for an investment te XRP wasn’t to learn the process, it would not have bot worth the time.
- It’s nerve-racking. Kritiseren is ter no way spil user-friendly spil Coinbase. After spending a considerable amount of time on Openbreken, I am more comfy with it, but it still takes mij some time to navigate around it. When I made my initial transfers and purchases I wasn’t 100% sure I wasgoed doing it correctly-another reason for a $100 investment. Fortunately, I did everything right.
- It’s inefficient. Not only did it take up time and cost mij way too much to finish the total transaction, but I still have $1.25 off BTC/XBT on Losbreken. I wasn’t able to confidently take my total BTC/XBT balance and invest it all ter XRP-I wasgoed worried about spreads and fees causing mij to come up brief and have to deposit more BTC/XBT to voorkant the shortfall. Kritiseren may not have permitted mij to invest more than I had, but there wasgoed nothing on the webpagina that made mij feel convenient that I wouldn’t overheen invest…plus there wasgoed a line for margin, which means it’s possible to borrow to invest ter XRP.
- BTC is XBT. Experienced investors may be familiar with the global identifier for Bitcoin being XBT, but fresh American investors may only know Bitcoin spil BTC. I’ve attempted to waterput the two together te the postbode to drive huis the fact they are the same thing.
I fear investors will proceed to look for the next “Bitcoin” and start investing ter “cheaper” cryptocurrencies without fully understanding what they are investing te. You may not read this ter very many posts, but it is ok to miss out on cryptocurrencies. Sticking to a well-diversified portfolio with a long-term view will most likely proceed to get the job done for investors. It is possible to reach financial goals without investing te cryptocurrencies, and my hope is when investors realize after the cost, sometimes complicated process and the ongoing monitoring of cryptocurrency, many will realize it’s very likely not worth it for the little they were going to invest ter the very first place.
If after reading this you are still interested te some of the other cryptocurrencies available, consultatie your financial advisor to determine how to best sate your itch. I’d also recommend checking out Cryptoassets by Chris Burniske and Jack Tatar to read more about the coins you might be investing ter.
And again, it’s ok to sit out the cryptocurrency craze!
Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining your individual situation you should consultatie your financial advisor. For all of the disclaimers, please see my disclaimer pagina.