Contrary to how it may seem, starting to invest in cryptocurrencies is quite simple. There are a few things that deter people from getting into it. Blockchain, the technology that allows for the existence and circulation of cryptocurrencies, is still new and is little known to the public. In addition to that, there is already an established crypto community, which has its own jargon and can seem impossible to get in to. Therefore, the new investor may be a bit hesitant at first.
However, you should not give up!
There exist all kinds of people in the crypto community. They are small and big investors, technology visionaries, programmers, day traders and millions of individual users. And it is not an accident! There are a lot of advantages of investing in crypto.
Advantages of investing in crypto assets:
Speed of transactions;
Little or no bureaucracy;
High chances of making a profit.
With a little dedication and patience, it is possible for everyone to become a part of the crypto community. It is possible to get good returns on crypto investment if you are ready to learn the main concepts, thoroughly study the market and be attentive to the latest trends. Cripto InterCambio blog has prepared a complete_ guide on how to start investing in cryptocurrencies._
1. Choose a cryptocurrency to invest in
There are thousands of cryptocurrencies in circulation, all with distinct characteristics and purposes. Some stand out for the speed of their transactions. Others, for their sophisticated architecture. There are also stablecoins, which are anchored to fiat money or commodities and have a less fluctuating value. The main cryptocurrencies of the market are those with the highest volume of market capitalization. According to CoinMarketCap, the most used cryptos are:
Bitcoin – the most well known and commercialized cryptocurrency;
It is common for beginners to start buying up one of the five major cryptocurrencies. As there are more of them circulating on the market, it is easier to acquire them on an exchange or from other users.
2. Choose an exchange
Once you have decided which cryptocurrency to invest in, you need to buy it on an exchange platform.
The process is not that different from buying foreign currency at any exchange house, except for the fact that it is virtual. Each of the exchange platforms offers different quotes and service prices.
It is important to study the platforms, to see which one offers the best conditions to the user. The vast majority offer the possibility of buying crypto with bank cards. Another option is to buy crypto directly from another user. On LocalBitcoins, for example, you can find people in your country who want to buy or sell crypto through different payment methods.
Cripto InterCambio Tip: Beware of fraud!
Before investing, it is essential to know the reputation of the exchange.
Unfortunately, many malicious people have been using cryptocurrencies to scam others, especially through so-called financial pyramids(or Ponzi Scheme). Always read the ratings other users leave and watch out for companies that offer exaggerated earning promises. Therefore, choose exchanges that are known for and offer transparency and speed, both in deposits and withdrawals.
3. Choose a virtual wallet
To perform any type of transaction with cryptocurrencies it is necessary to have a virtual wallet. It makes it possible to store and carry out transactions with your tokens.
There are four types of virtual wallets, each with its own advantages and disadvantages:
The first three are considered to be the best for making payments and transactions, and the last one – for storing large amounts of crypto. If you want to learn more about each of them, read the “Virtual wallet: what is it?” article on our blog.
4. Diversify your portfolio
The golden rule is to not put all the eggs in one basket. In other words: diversify your investment portfolio. Each cryptocurrency has its own market, and price fluctuations are very different.
One of the great benefits of investing in cryptocurrencies is the ease of exchanging them. Is the value of your crypto falling? Exchange it for another! Is there a token growing rapidly? Use your crypto to buy it.
If you want to exchange cryptocurrencies, Cripto InterCambio can help you. We have more than one hundred cryptocurrencies listed, all of which can be exchanged within minutes: intuitively, without commissions, and with total anonymity and security.
5. Follow the market
Now you know the basics of how to start investing in cryptocurrencies: the next step is to follow the market. Staying informed is essential in this industry! As this is a market without any control, price variations can be quite large. Therefore, it is necessary to be aware of the latest news in the crypto universe. Statements by the authorities, changes in the initial design of the tokens, new cryptocurrencies – all this affects the price of the crypto.
Another tip is to study experts’ analysis, who explain what is happening and give advice on trends for the future.
Ten years after the launch of Bitcoin in 2009, there is already enough data to understand some characteristics of the behavior of this market.
With all this, access to news sites and specialized blogs is essential to succeed in this area.
Conclusion: is it still worth investing in cryptocurrencies?
Undoubtedly, the investment in crypto is still worth it. There are many benefits of crypto assets for both short- and long-term investments. Due to the advantages offered by blockchain technology and the real possibilities of good performance, more and more people are using cryptocurrencies. It is for this market to increase in value in the future.
Understanding the main concepts and often following the market trends is the key to enter the crypto community.
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