Сryptocurrency

How To Invest In Cryptocurrency

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If for you crypto-currencies – an unknown space, but you’ve heard that you can make good money on them, then some tips will be useful to you. We tell you how dangerous investments in crypto-currencies are, how to choose an asset, and where to start.

1. Is it worth investing in crypto-currencies?

Today, crypto-currencies are considered to be one of the best investment instruments. Why is this so?

  1. Growth in value. Most currencies are rapidly becoming cheaper, and many in search of ways to hedge their capital are turning to crypto-currencies.
  2. Technologies. Crypto-currencies are based on stunning solutions that allow the use of currency anywhere in the world – unless, of course, the government has decided to ban it.
  3. History of growth. Since the creation of bitcoin, investors have benefited greatly from the growth of its price. Thus, investing in assets related to crypto-currencies gives an opportunity to improve the financial situation.

2. What are the risks?

Before investing, it is better to clarify a few questions:

  1. Is not this a bubble? Some experts believe that crypto-currencies are a bubble, and that they will not pass the test of time. For example, this opinion is shared by JP Morgan CEO James Daimon. Traditional financial investors seem to think that since digital currencies are not backed up and are highly volatile, they will not be able to compete with traditional money and, therefore, they will never be replaced.
  2. Volatility . With strong price hikes, an investor who has already earned a lot of money can lose them overnight. As an illustration, you can see the cost of bitcoin over the past three months.
  3. Legal risks. Not all the countries of the world officially recognize digital currencies, that is, one can face the fact that in some countries it is impossible to open a crypto-currency purse or pay in a store. In addition, if you earn money in the crypto currency, you may face difficulties in declaring taxes, because in most countries, governments have not yet developed appropriate rules.

3. Which crypto currency should I invest?

This is a tricky question, since many factors need to be taken into account. Let’s consider the most important of them:

  1. Prevalence. Before investing in cryptoactive, find out which countries recognize it and accept it as a legitimate medium of exchange.
  2. Portability. Digital money should be easy to move without any problems.
  3. Security. This is an important characteristic of all legal currencies, from the dollar to the pound sterling, which means that a good digital currency should also be safe.

Over the past few years, a lot of digital currencies have been issued, and each of them promised to grow faster than others. Here are the most common:

  • Bitcoin. While bitcoin ( Bitcoin ) remains the most valuable crypto currency with a high return on investment. Nevertheless, as mentioned earlier, he is not immune from high volatility.
  • Ether. Ether ( ETH / USD ) – the second by market capitalization and price is the digital currency.
  • Lightcoyin. Lightcoyin ( LTC / USD ) – one of the most stable crypto currency, traders even often call it the main hedging asset of this market, although it was influenced by news about the ban of ICO in China .

And this list is not limited.

4. How to start investing in crypto-currencies?

  1. Decide what you want to invest in. Since there are more than a thousand crypto currencies, this choice is very important.
  2. Set aside funds for investment. Any investment requires planning, so you need to decide how much you would like to invest in crypto assets and how often – weekly or monthly. Set aside the amount for this purpose and wait for a good opportunity.
  3. Create a purse. The address of such a purse allows you to request and receive purchased coins. There are different types of wallets – each for its own crypto currency.
  4. Register on the exchange. Trading takes place on stock exchanges, and there are a lot of them: Coinbase , HitBTC, Bitfinex, Bittrex, BitstamP, etc.
  5. Buy the chosen crypto currency. Now, after creating an account on the exchange, it’s time to buy. If you do not know how to do this, contact the support team and they will be happy to help you.
  6. Transfer coins to offline storage. Autonomous storage allows you to save funds from hacking.

Note that investing in crypto currency is considered risky, and when making a decision you will have to conduct your own research.

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