PotCoin (POT) - All you need to know
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Ways to invest in PotCoin
The most direct approach is to sign up with an online broker or exchange platform. You can create an account and trade coins in a matter of minutes, so it’s ideal for both a long and short term strategy.
There are more indirect ways to invest as well. There are managed mutual funds or exchange-traded funds that offer a way in without requiring the same micromanagement as creating your own portfolio. Explore the different ways to get PotCoin in the links below.
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What is PotCoin?
PotCoin was launched in 2014 and was one of the original forms of digital cash aimed at the Cannabis industry. Initially created by entrepreneurs and developers based in Montreal, PotCoin was designed to solve issues with banking for buyers and sellers of legalised marijuana.
Trading PotCoin is peer-to-peer and completely independent of banks and clearing houses. The aim of PotCoin is to unite people who want to buy and sell legalised cannabis products and give them an industry-specific cryptocurrency to do just that, and now there’s even a PotCoin ATM in Colorado.
How does PotCoin work?
PotCoin started life as a fork from Litecoin and the two cryptocurrencies were almost identical until the PotCoin developers made some slight adjustments and increased the maximum cap of coins available to 420,000,000.
As it came from Litecoin, PotCoin initially used a script-based proof of work algorithm, but this has now been changed to a proof of stake velocity algorithm, which is a better model as it rewards ownership of PotCoins in the form of interest.
How to invest in PotCoin
There are a few different ways. Below, we’ve put together a list of the options available to you. Read through and get to know each one so you can make the best decision on how to invest your own hard earned money.
- Broker platforms. Signing up for an online broker is the easiest way to start. You can search for a coin and find a price to buy or sell it instantly – at the price of a small commission – and most platforms are beginner-friendly, with lots of material to help you get started. Just be warned that not all brokers offer every coin, so it might be difficult to find PotCoin on one.
- Cryptocurrency exchanges. An exchange is a more advanced version of a broker. Instead of trading through an intermediary, you buy and sell coins directly with other users. There are a lot more coins available on an exchange and the likes of Binance offer a huge range to swap between. If you want to find a smaller coin like PotCoin, often you have to use Bitcoin first as a go-between.
- Funds. A fund is a managed investment vehicle that pools together money from lots of different people. The fund manager decides what to buy and sell. More funds are adding cryptocurrencies to their portfolios, but they tend to be expensive to join so are only available if you have a larger lump sum to start with.
- Mutual funds. Mutual funds are more accessible to the average person. They work in much the same way as funds – a professional chooses where to put a pool of money contributed by many independent investors. Look for a mutual fund that holds cryptocurrencies like PotCoin if you want to get involved, and you can get one as you would a regular stock.
- PotCoin ETFs. Exchange-traded funds are another similar method. An ETF tracks the performance of a particular asset class, sector, or industry. Instead of a professional making decisions, it simply owns the assets or stocks from within that market so its performance reflects theirs. ETFs also trade like normal stocks and are very easy to use for a beginner. Start by looking for a PotCoin ETF or a cryptocurrency ETF.
- Crypto debit cards. Debit cards are a way of spending PotCoin on your day-to-day purchases. Crypto cards work like regular cards, so you can spend whatever you have in your account with merchants that accept them. PotCoin is obviously geared around the cannabis industry, so you will be able to find suppliers that accept crypto payments.
- Smartphone apps. PotCoin apps are a way of managing your cryptocurrency from your mobile phone. These days you can find apps that let you buy, sell, and trade PotCoin on the go and many brokers in particular have high quality apps with the same features as you would find online.
- PotCoin wallets. Crypto wallets are the most secure way of holding coins for a long time. They work by encrypting your coins so that they can only be accessed with a private key that’s unique to you. There are many different types of wallet available, from mobile apps to hardcore offline wallets that keep coins in ‘cold storage’, away from any connection to the internet.
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