The investment in the cryptocurrency is something very new. Unlike stock market investments and banks, there are not many transactions in bitcoin.
The blockchain appeared in 2008 with the Bitcoin. This new technology offers the possibility of transferring value online. Thus, Internet users can now send money through the Internet independently, without third party intervention (banks) and in a secure manner.
Since the advent of Bitcoin, many cryptocurrencies have emerged. Most are just copies of Bitcoin and are certainly not destined for a great future. However, some have created real innovations, and it is, therefore, important to be familiar with the main cryptocurrencies in the ranking.
Below you can read about bitcoin life style:
Understanding the risks
The high volatility of the price of cryptocurrencies often leads to large fluctuations. If it can lead to big gains, it can also lead to heavy losses. It is therefore recommended to invest only a small part of its capital.
Some experts recommend that institutional (professional) investors invest only 2 to 5% of their capital in this new market. Bitcoin and other assets are also seen as a way to diversify its investments because their prices are not correlated with any other asset at the moment. The best advice is probably to invest an amount that you can afford to lose. also check Crypto Profit Review
Define your investment strategy
There are 2 main strategies, first of all, long-term investment:
The investors who buy currencies for a return on time. It involves investing in one or more cryptocurrencies of your choice to make a profit over several months or even years.
And very short term investment: The traders who practice pure trading, i.e., to tens or even hundreds of operations on the Crypto every day. This second strategy requires much more involvement and technique.
Favor cryptocurrencies that bring novelty
It is important that the currency has a purpose and is not just another copy of Bitcoin. For example, Ethereum makes it possible to launch fundraising in cryptocurrencies called ICO.
However, we must also be wary of cryptocurrencies promising mountains and wonders and proposing far-fetched concepts. Make it clear and stick to the facts, not the promises.
Avoid beginner mistakes
The high price of virtual currency does not necessarily mean a larger and profitable investment. It is also necessary to take into account the daily transaction volume and especially the market capitalization of the currency.
Also, do not invest in a cryptocurrency because someone advised you to do so, or because you read it was a ‘good investment’ once. Prefer to investigate yourself and consult specialized forums to read, even discuss and form your own opinions.
Buy and exchange cryptocurrencies
If you feel ready to invest in this sector, you can consult our dedicated guide to buy Bitcoin and cryptocurrencies to start your first investments.
For the moment, only a dozen cryptocurrencies are available for purchase (bank card, bank transfer, or Paypal). These are the best known: Bitcoin, Ethereum, Ripple, Bitcoin Cash, IOTA, Cardano, Stellar, Dash, NEO, EOS, Litecoin, and Ethereum Classic.
To obtain other less popular currencies such as TRON, Dogecoin, or Binance Coin, you will have to trade as soon as you have bitcoins.
Secure bitcoins and cryptos
Once your cryptocurrencies in your pocket, you can decide to leave them on online services or to keep them in a special wallet outside the internet and thus avoid the potential risks of the hack.
A storage device of this type is called ‘ hardware wallet ‘; it is a palpable wallet that looks a lot like a USB key. On our side, knowing that an anti-theft product of this type costs around 100 €, we recommend its use as soon as your investments exceed 500/1000 €.
Diversify your investments, but not too much
Many novice investors decide to acquire dozens of different cryptocurrencies to spread the risk. However, we know today that many projects are doomed to failure and that it is better to bet on some safe values like Bitcoin.
Also, if you have too many cryptocurrencies, you risk getting lost in your investments and making potential mistakes. So, as mentioned earlier, ‘investigate’ and select a few assets that you believe bring real added value.