Investing in Internet Computer is easier than beginners might think - all you need is an online account to get started.
The Internet Computer protocol, developed by Dfinity, aims to create a blockchain-based decentralized computing system. The project advertises itself as an improved version of the Ethereum network - making way for increased safety, transaction speeds, and reduced costs.
On May 10, 2021 - Internet Computer released its native digital token ICP on several popular cryptocurrency exchanges. In a matter of days, the coin managed to move straight into the top 10 cryptocurrencies based on market capitalization.
If you are keen to learn more about this digital token, then our How to Invest in Internet Computer Guide will walk you through the process.
We will introduce you to the basics of buying this cryptocurrency, what strategies you can use, and how you can invest in ICP tokens conveniently from the comfort of your home.
How To Invest In Internet Computer (ICP) - 5 Easy Steps Guide
If you’re strapped for time and simply want to invest in Internet Computer without reading our in-depth walkthrough - follow the steps below!
- Step 1: Open an account with a regulated broker
- Step 2: Deposit some funds with a debit/credit card, e-wallet, or bank transfer
- Step 3: Choose the amount you want to invest in Internet Computer (ICP)
- Step 4: Confirm the investment
- Step 5: Leave your Internet Computer stored until you decide to cash out
As the 5-step walkthrough above highlights, the process of investing in Internet Computer (ICP) could not be easier. Best of all, there is no requirement to worry about cryptocurrency wallets - as regulated brokers like eToro will store the ICP tokens for you!
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Contents:
- What is Internet Computer?
- How Does the Invest in Internet Computer Process Work?
- Why Should you Invest in Internet Computer?
- How to Invest in Internet Computer - Various Options Available
- How to Choose a Platform to Invest in Internet Computer
- How to Invest in Internet Computer Today - Step-by-Step Walkthrough
- How to Invest in Internet Computer - The Bottom Line
As you can see, investing in Internet Computer could not get any easier. The trick is to find a regulated online crypto broker that you can trust with the safety of your investment funds and digital assets.
We will talk about this in more detail in the later sections of our guide.
For now, let us get started with the fundamentals of investing in Internet Computer.
What Is Internet Computer (ICP)?
Internet computer is a public resource that enables you to build services using smart contracts that will be directly hosted on the internet.
The company behind Internet Computer, Dfinity, is based in Zurich and looks to offer support for organizations that want to develop decentralized applications.
Although the Internet Computer project seems fairly new in the crypto market, the product has been in the making for over five years. The ICP team comprises experts in the crypto industry, information technology, digital security, fintech as well as entrepreneurship.
One of the main scientific breakthroughs that makes Internet Computer unique is its Chain Key Technology. Put simply, this consists of a collection of protocols that organize the nodes that make up this system.
It allows Internet Computer to function with a single public key - making it possible for any device to verify the authenticity of artifacts found on the ICP protocol. Such a feature is currently lacking in traditional blockchains.
In addition, this Chain Key Technology also enables the Internet Computer project to scale up - by adding new nodes and replacing them. This makes way for the protocol to grow seamlessly by adding new features and fixing bugs along the way.
Internet Computer is also one of the most well-resourced cryptocurrency protocols in the making. The company managed to raise around $160 million well before its launch.
It has also received endorsements from notable venture capitalists, including Andreessen Horowitz. In May 2021, the Internet Computer protocol launched its native token ICP in order to fuel its computational purposes.
Holders of ICP tokens will receive voting rights in the network's governance and policy-making.
The coin is currently listed on several popular cryptocurrency platforms - and in just over a week since launching, has already managed to acquire a multi-billion dollar market capitalization.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Does The Invest In Internet Computer (ICP) Process Work?
In its most basic form, investing means to allocate your money to an asset with the expectation that it will grow in value.
In the case of cryptocurrencies like Internet Computer, you purchase the digital coins hoping that they will increase in price - thus helping you make a profit in the process. However, whether or not this happens comes down to the market forces at play.
As with any other financial asset, the price of ICP tokens is also dictated by demand and supply.
For instance, if there is widespread interest towards Internet Computer from new buyers - this will drive up the price of the coin. On the other hand, if there is little involvement from investors - the value of the token will likely go down.
If ICP tokens manage to rise in value over time, this will allow you to sell your Internet Computer coins for more than you originally paid - allowing you to make capital gains on your investment.
Allow us to explain better using an example:
- Let's suppose that you are looking to invest $10,000 in Internet Computer.
- At the time of the purchase, the Internet Computer token is valued at $150.
- You decide to store your ICP coins in your wallet until it increases in value.
- After six months, the price of Internet Computer rises to $250 per coin.
- This translates to a gain of 66.67% on your Internet Computer investment.
- Pleased with these gains - you decide to sell your ICP tokens.
On your $10,000 investment - you were able to make a profit of $6,667. As such, if the market moves in your favour, investing in Internet Computer can help you make high returns on your capital.
Read Also: Pros and Cons of Investing in Internet Computer
Why Should You Invest In Internet Computer (ICP)?
Similar to any other tradable asset, Internet Computer is also a highly speculative investment. In other words, the value of this coin reflects wider market conditions - which fluctuates throughout the day.
For this reason, it is critical to understand what factors can influence the price of this digital asset.
Below are some of the reasons why you might want to put your money into Internet Computer.
Internet Computer Offers an Innovative and Unique Market
The launch of cryptocurrencies has since led to disruption of the existing structure of the financial world. Since the release of Bitcoin, we saw several new digital coins emerge into the market. Among the thousands of such crypto tokens, only a fraction offer actual utility.
Internet Computer plans to bring a change to this current crypto landscape. It has the potential to alter cloud-computing services - which is already one of the largest sectors in new-age technology.
The market of cloud-storage solutions is currently dominated by centralized services such as Amazon’s AWS. If Internet Computer becomes popular, it could offer a decentralized alternative to this existing system - giving users far more control over their data and operations.
Internet Computer is Scalable
When it comes to blockchain projects, scalability has always been an issue that has hindered its growth. This encouraged users to prefer centralized systems as opposed to decentralized platforms.
However, Internet Computer offers a solution to this through its Chain Key technology. The protocol rewards users that offer computing power to others in the decentralized web.
This ability to scale gives ICP an upper hand compared to other blockchain platforms. On top of all this, the project has a clear focus on its future direction regarding its potential growth.
The Right Time to Enter DeFi Market
As we have mentioned several times already, Internet Computer is one step closer to building a decentralized web. In fact, since the beginning of 2021 - the DeFi sector has been on the rise.
Apart from ICP, there are several other DeFi coins that have performed particularly well in this specific industry.
Given these factors, Internet Computer managed to enter the market at the perfect time. The sentiment towards the DeFi sector is super positive and commands a market cap of over $141 billion at the time of writing.
In fact, any DeFi token that is being launched is gaining instant attention from crypto enthusiasts.
In that sense and more, the Internet Computer project seems to be well-positioned. This might encourage investors to put their money into ICP as the next big thing that could transform the landscape of internet and fintech solutions.
Considering these many factors, it is evident that Internet Computer might be a good addition to your crypto portfolio. As a DeFi token, it emerged as one of the largest crypto projects of 2021 and has plenty of room for further growth.
Check Out: 15 Reasons Why You Should Invest in The Internet Computer Now
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Invest In Internet Computer (ICP) - Various Options Available
Investing in Internet Computer can be one of the best ways to diversify your financial portfolio. And today, thanks to online cryptocurrency platforms - the process is easier and more convenient than ever.
If you are thinking about how to invest in Internet Computer - you can choose one of the options below.
Internet Computer ATMs
Cryptocurrency ATMs have become one of the popular ways to facilitate purchases of digital assets. As of now, there are around 20,000 crypto ATMs installed worldwide.
If you have never purchased cryptocurrencies through an ATM before - this is how the process works:
- You can start by locating your nearest cryptocurrency ATM that supports Internet Computer.
- The next step is to select Internet Computer from the list of available crypto tokens.
- Specify the amount you would like to invest in Internet Computer - let's say you go for $1,000.
- Once you specify this amount, the ATM will tell you how many ICP coins you will receive - after accounting for fees.
- For instance, the crypto ATM might charge you an 8% fee - meaning you will get $920 worth of Internet Computer tokens, depending on the current exchange rate.
- When ready, you can insert your $1,000 into the ATM machine.
- At the end of the transaction, the ATM will print a receipt for you.
This receipt will contain all the details on how you can claim your Internet Computer coins.
Although using a crypto ATM might seem like an easy method, in reality - it can be more troublesome than you imagine.
To begin with, most crypto ATMs will charge you a high commission to process the payment. Often, this could be anywhere in the range of 5 to 20%.
Moreover, the process of buying Internet Computer does not end at the ATM. You will have to obtain your coins through a digital wallet. If you are a novice investor unfamiliar with the concept of crypto wallets, this will complicate things further.
Beyond all this, you might not be able to find a crypto ATM that offers Internet Computer coins near where you live.
On the contrary, if you choose an online cryptocurrency platform - you can easily buy Internet Computer from the convenience of your home.
Internet Computer Broker
Online cryptocurrency platforms allow you to purchase Internet Computer by making payments through the internet. As you can imagine, this is not only easy but also cost-effective when compared to crypto ATMs.
Moreover, the entire process of investing in Internet Computer through an online broker is also more secure. The best online crypto brokers are licensed by financial authorities - offering an additional layer of safety on your transactions.
Online brokers will also offer you the convenience to pay for your Internet Computer purchases using your preferred payment option.
For instance, many brokerage platforms support debit card and credit card transactions, bank transfers, and even e-wallets such as PayPal.
Perhaps, most importantly, the reason why we favour online crypto brokers is that they charge relatively low fees for buying Internet Computer. In some cases, you will even be able to find brokerage platforms that allow you to purchase ICP tokens without paying any commission at all.
With this in mind, we will move forward to the next section - which will explain how you can find the best online crypto broker for investing in Internet Computer.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Choose A Platform To Invest In Internet Computer (ICP)
Today, there are hundreds of platforms on the internet that are able to give you access to cryptocurrencies. However, when thinking of how to invest in Internet Computer, you should choose a broker based on the features that matter the most to you.
To help you in this decision, we have prepared a list of characteristics that you need to look for in an ideal online crypto broker.
Licensing and Reputation
It doesn't matter whether an online cryptocurrency platform offers you low fees and convenient access to Internet Computer - if the broker does not hold a regulatory license, it is best you take your business elsewhere.
The reason is quite simple. Investments of any kind carry their own risk. As such, when entrusting your capital to a third party, you should ensure that the platform is transparent and trustworthy.
A regulatory license will ensure that your online broker takes its responsibilities seriously.
For instance, regulated online brokers are required to keep your funds segregated from their own and submit their financial records for regular audits. Many brokers will also have insurances in place to protect your funds in case they are stolen.
Therefore, we suggest that you keep your search for an online broker limited to those that hold at least one regulatory license. For example, some of the most common financial authorities include the SEC in the US, the FCA in the UK, ASIC in Australia, and CySEC in Cyprus.
Fees to Invest in Internet Computer
When making an Internet Computer investment, you want an online broker that charges you minimal fees so that you can keep most of your profits to yourself.
No matter which online crypto provider you choose, you will be liable to pay a fee of some sort. However, the types of charges and rates will vary from one broker to another.
The most important fee you need to be aware of is the trading commission.
For instance, if you choose to buy Internet Computer from the cryptocurrency exchange Coinbase - you will be required to pay a commission of 1.49%. You will be charged this once when you make the investment and again when you are cashing out.
This is why you might want to look for an online crypto broker that charges you zero commission - which will help you save money.
Apart from commission, you should also check whether there are any additional administrative fees such as deposit and withdrawal fees. Many online brokers allow you to make deposits for free, but you might have to pay a flat rate for each withdrawal you make.
Minimum Internet Computer Investment and Payments
At the time of writing, the price of a single Internet Computer coin stands at $29. Though much lower than its all-time high, it can be a good price for investors will a smaller budget.
However, today you can find online crypto brokers that allow you to make investments with no minimum amount required.
For instance, you can invest $100 and receive Internet Computer tokens worth the exact amount - minus the trading fees.
As such, the lower the minimum investment set by the broker, the better it is for you as an investor.
Talking about investments - you should also make a note of what payment methods are supported on the platform. For instance, while some brokers allow only bank transfers, others offer support for a wide range of payment types, ranging from debit/credit cards and e-wallets such as PayPal.
If you opt for a platform that only supports bank transfers, it might take a few business days for your deposit to arrive.
Storage and Cashing Out
To store your cryptocurrency investment, you will need a digital wallet that is safe and secure.
In order to make this part easier, it is best if you choose a crypto broker that offers an in-built wallet service on the platform itself. This means you do not have to withdraw your Internet Computer coins to an external private wallet every time you make a purchase.
Moreover, you will also have to go through the cumbersome process of ensuring the security of the third-party wallet as well as the safekeeping of your private key.
On the other hand, if you are already familiar with the process, then you might prefer to store your Internet Computer coins in a private wallet.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Invest In Internet Computer (ICP) Today - Step-by-Step Walkthrough
At the beginning of our guide, we gave you a quick walkthrough of how you can invest in Internet Computer in less than 10 minutes.
Here, we will elaborate each step separately.
Step 1: Open an Account
By following our guidelines, you should be able to find a regulated online broker without too much difficulty. Once you have selected a platform, you can move forward by opening your account.
As common with any website, this will require you to provide your email address and set a username and password. Moreover, you will also have to provide some basic personal data such as your full name, date of birth, and home address.
Step 2: Provide Some ID
When using a regulated online broker for investing in Internet Computer - you will also have to go through a KYC verification process. This is to avoid identity fraud on the platform.
Not to worry, this only means that you will have to submit a copy of your photo ID - such as your passport or driver's license. For proving your residential address, you can provide a recent utility bill and bank account statement.
Step 3: Make a Deposit
To make an Internet Computer investment, you will first have to deposit money to your online account. As we covered earlier, dependent on your online broker - you will have numerous payment methods available at your disposal.
It is best to use a debit or credit card because the payment will be processed instantly.
Step 4: Search for Internet Computer
When your deposit has appeared in your brokerage account, you can take steps to invest in Internet Computer. To do that, you can search for ICP on the respective platform and head over to the trading page.
Step 5: Complete Internet Computer Investment
At this stage, you can enter the amount of capital you want to invest in Internet Computer. Depending on your chosen brokerage platform, you might have to make a minimum investment.
Finally, confirm the order to complete your investment in Internet Computer.
Step 6: Cash Out Your Internet Computer Investment
As we discussed, many online brokers offer integrated digital wallets. If this is the case, the Internet Computer coins you purchased will be deposited into your wallet for safekeeping.
If this isn't the case, your chosen platform will provide you with instructions to withdraw the ICP coins to an external digital wallet.
Finally, when you feel the market conditions are perfect for you to cash out - you can move your ICP coins back to the same online broker to sell them.
The proceeds will then be available for withdrawal.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How To Invest In Internet Computer (ICP) - The Bottom Line
Considering its current standing in the cryptocurrency market - there is every potential that Internet Computer could make an interesting addition to your investment portfolio. However, ultimately - the question comes to whether the risk is worth the reward.
It is still too early to predict the future direction of this coin. Therefore, it is imperative that you proceed with due-caution before thinking about how to invest in Internet Computer.
As our guide has demonstrated, it is a simple process that starts with choosing a regulated broker. With the right online platform by your side, your investment in Internet Computer will be easy, safe, and cost-effective.
eToro – Best Cryptocurrency Platform To Buy Internet Computer
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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How To Invest In Internet Computer FAQs
Which is the best way to invest in Internet Computer?
The most convenient and safe way to invest in Internet Computer is through a regulated and reputable online crypto broker. Your chosen regulated platform will make it easy for you to invest in ICP tokens with a debit/credit card or bank transfer.
How can I store my Internet Computer coins safely?
Once you have completed the purchase of Internet Computer - you can withdraw it to your private cryptocurrency wallet. Otherwise, you can also pick a regulated online broker that provides in-built services for storing your crypto assets. This will save you from the hassle of moving your coins to an external wallet for safekeeping.
When is the best time to invest in Internet Computer?
Internet Computer is a volatile cryptocurrency that entered the market in May 2021. It is impossible to correctly speculate whether the value of the coin will rise or fall in the future. If you are looking to invest in this crypto asset - make sure that you perform thorough research and gain an understanding of the DeFi sector and associated markets before risking any capital.
What is the minimum amount required to invest in Internet Computer?
The minimum investment required for Internet Computer will depend on your chosen crypto broker.
Is it possible to lose money on Internet Computer investments?
Yes, every investment involves a certain degree of risk. If the price of Internet Computer drops after you have made the investment, you will lose your capital.