Of course, as an investor, all of this should give you pause. Your goal should always be to buy low and sell high. And while no one knows where crypto prices are heading, recent record prices make it much more difficult for investors buying today to make future gains.
How to buy and sell cryptocurrencies with Coinbase
It is time to choose your cryptocurrencies.
Bitcoin, Ethereum, Litecoin and Bitcoin Cash, the four types of cryptocurrencies available for PayPal customers to buy and sell, are among the safest, said Hanna Halaburda, associate professor at NYU Stern School of Business, previously told to Money. Since they are among the most popular and expensive cryptocurrencies, more computational power is put into maintaining their blockchain, the technology behind cryptocurrencies, making them more expensive for hackers to attack. They've been around for years too, so if there was a bug, we'd probably know about it, he adds.
For most investors, buying a bitcoin that has been priced at nearly $ 67,000 per coin is probably not an option. Ethereum costs more than $ 4,000 per coin and even Litecoin, at more than $ 200, may be more than you want to spend. But Coinbase allows users to buy a small fraction of a coin. It's common for investment apps like Robinhood to allow traders to buy fractional shares, such as investing $ 25 in Amazon instead of the more than $ 3,000 you'd need to buy a full share. With Coinbase, merchants can buy or sell as little as $ 2 worth of digital currency.
