investing in cryptocurrency

Tips For Investing in Cryptocurrencies

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If you have decided to invest in virtual currencies, or what is the same, invest in cryptocurrencies , it is important to know that cryptocurrencies can be acquired without intervening any intermediary and although any amount can be invested, since it is not necessary to acquire whole cryptocurrencies, the amount The minimum recommended amount is $ 100, around € 80, depending on the US-euro dollar exchange rate at any time investing in cryptocurrency.

They have detractors based on legal limbo and defenders, who they believe represent the future of the world economic system.

It is a fact that cryptocurrencies are gaining ground (every day more brokers are interested in them) and that profitability in recent years has been spectacular. But, we must not forget that they are high risk investments, and very volatile. And that there is nothing guaranteed.

The great advantage of these crypto currencies is that Bitcoin has convertibility in all traditional currencies and all cryptocurrencies have Bitcoin convertibility. Know all the advantages and disadvantages of cryptocurrencies that you should know before investing in them.

As for what types of cryptocurrencies to invest, you should know that there are at least 4000 cryptocurrencies, so a good advice is to invest in the most capitalized ones.

How to invest in cryptocurrencies correctly

The account or wallet account is opened in an Exchange (there are many, Coinbanse, Bitfinex, Poloniex …). From there it is possible to acquire cryptocurrencies directly.

Once you have your account open, since everything is done online, it is possible to access from anywhere. The most capitalized ones, such as Bitcoin, can be changed to traditional currencies, but the rest of the cryptocurrencies are convertible in this one.

Other options to invest in cryptocurrency

These are the alternatives that exist to invest in cryptocurrencies:

  • Invest using a Broker . In this case, the advantage is that information about market movements is received. They also give you an advice.
  • Minar cryptocurrencies
  • Use ATMs, although they are not yet widespread.

Some of the best-known cryptocurrencies are

  • Hayek: who stands out as the only cryptocurrency that uses the gold standard . Its price is measured by the price of the gram of gold at each moment.
  • Bitcoin: the first cryptocurrency, born in 2009, is the most capitalized. It has the peculiarity that it is not possible to create more than 21 million. It uses Blockchain technology and, currently, 8 decimals are used in Bitcoin transactions. The idea is that the Bitcoin exchange market resembles currency exchange, that is, prices change all the time according to supply and demand.
  • Ethereum: the second cryptocurrency by capitalization, is growing a lot. It is characterized by its smart contracts and 8 decimals are also used in transactions.
  • Dash, is characterized by being oriented to get instant transactions. Its technical improvements have been remarkable.
  • Ripple, is another of the most capitalized. It is known as the cryptocurrency of banks.
  • Litecoin , is one of the cryptocurrencies that has shown a greater stability d. In fact, it is used by operators as a hedge asset in this market.
  • Monero , is known as the currency of cybercriminals, because it is the most confidential cryptocurrency that exists.

Another possibility is the ICO (Initial Coin Offering) whose purpose is to finance the development of new projects and protocols. That is, they amount to an offer of cryptocurrencies before their launch. Although they usually find many investors, the risk is very high, because it is not possible to know the real state of each project and it is possible that they end up disappearing.

To save virtual currencies you must have a wallet or purse. It is possible to install software on the computer or mobile phone. However, unless they are to be used it is better to keep them disconnected from the network in a hardware wallet or in a paper wallet, also called paper wallets, which are nothing more than printing or copying the keys of the bitcoins in different roles, to avoid mistakes.