Since gaining popular recognition over the past several years, cryptocurrency has suffered countless blemishes in the public eye - but recently, top investors have affirmed their trust in this new marketplace. What changed? Financial expert and JPMorgan (JPM) CEO Jamie Dimon suggests the answer lies in proper use of price zones, which create increased opportunities for intraday gains. Of course, for new investors, that’s just more insider jargon. They need simpler guidelines to find their footing in the cryptocurrency markets.
Luckily, with increased popularity comes an increase in simplified resources, providing new investors with a point of entry. From university programs to newsletters, here’s how you can get started.
The academic angle
For the aspiring Warren Buffett (Trades, Portfolio) or George Soros (Trades, Portfolio), the first stop for cryptocurrency education may be a university course. Schools like Stanford, University of Washington and Carnegie Mellon all teach for-credit classes on cryptocurrency and blockchain. These courses offer students an opportunity to not only learn the foundational technology behind cryptomining and blockchain, but also allow them to collaborate with professionals in the field on trading strategies as well as technology solutions.
A daily update
If, like most people, you missed out on cryptocurrency during your college years, one of the best ways to keep up with this quickly changing field is by receiving regular updates. The popular newsletter Coinzy provides twice daily updates on the field, but keeps it all brief. Each update is under 500 characters - less than two tweets - providing the big picture and resources to dig deeper as needed.
Watch the retailers
One of the strongest indicators of where the cryptocurrency market is going is who’s accepting this new form of payment. In fact, growing retailer acceptance is a key indicator of this new currency going mainstream. Recently, businesses as diverse as Newegg, Overstock (OSTK, Financial) and Expedia (EXPE, Financial) have begun accepting bitcoin as a form of payment, while Starbucks (SBUX, Financial) has suggested they may integrate cryptocurrency payment in the future.
Most cryptocurrency investors aren’t interested in spending this currency - they’re investing, not changing monetary formats - so why is this relevant? In essence, broader acceptance and the widespread understanding that we are headed toward a cashless future is a sign of stabilization within the cryptocurrency markets. Mainstream retailers have plenty of ways to go cashless without accepting cryptocurrency, but if they perceive these digital funds to be reliable enough, then why not take the plunge?
Blockchain versus cryptocurrency
Finally, many cryptocurrency investors are less interested in these funds as an investment strategy than as a means of learning about blockchain. Why? Blockchain technology has potential uses across industries, including for land titles, criminal records, educational and health care records and even tracking jewelry and art provenance. In essence, blockchain is just an enormous record system with serious security protections, making it very appealing in light of many recent hacking incidents.
If you’re a new investor primarily interested in blockchain, then expand your scope as you master the cryptocurrency field. The money is a powerful incentive, but knowledge of blockchain applications could help you gain an edge in the digital security marketplace. In a few years, all major digital records may be blockchain based, so it’s worth exploring the intricacies of the system.
Cryptocurrency may still suffer from some volatility - many forms are still bouncing back from the crash in January and February - but that isn’t a reason to back away. Rather, exploring cryptocurrency requires you accept risk and educate yourself on the how to maximize the benefits. Regardless of why cryptocurrency is calling to you, though, it’s time to study up on what makes these digital funds work.
Disclosure: I do not own any of the stocks mentioned in this article.
