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It’s been a hot year for cryptocurrencies, and 2021 isn’t even halfway over. The total value of cryptocurrencies briefly surpassed $2.5 trillion in May as a plethora of new investors jumped in, and now approximately 14% of American adults own cryptocurrencies.
Cryptocurrencies are digital assets that are exchanged online on exchanges like Coinbase (the largest U.S. crypto exchange) and Gemini or via online brokers like Robinhood and SoFi Invest. Cryptocurrencies are hardly new. Bitcoin, the first and largest cryptocurrency by market capitalization, was created in 2009 and has been followed by more than 7,700 others. You may have also heard of ethereum, tether, or even dogecoin, which began as a joke and now sits among the 10 largest cryptocurrencies.
While some people are investing purely to speculate, others look at cryptos as a way to store value or hedge against inflation. Here’s how to invest in crypto now, whether you should get into it, and what to know before you do.
How to invest in cryptocurrencies
While investing in cryptocurrencies has gone mainstream, it’s not an option at many traditional online