In order to start or participate in a project, it is essential to have a certain amount of fiat currency on hand. Only, one can now use cryptocurrencies as an alternative. Being part of the Investment News Online Resources, they open the way to various activities. For example, there is the possibility of making capital gains, making online purchases or investing in a business considering them as a financial asset. Almost anyone can use it. But first you need to learn the basics and understand how it works.
Trading : a beginner's guide
Crypto-currency: definition
Simply put, cryptocurrency is virtual money. So it usually circulates online. For example, it can be found on various sites in the payment options, whether it is a good or a service. By addition, we can also exchange her for cash. For this purpose, visiting exchange platforms would be ideal. Obviously, by virtue of its rarity, cryptocurrencies are of considerable value. Thus, one can get currencies in euro, dollar etc., depending on the number and type of crypto one has in possession.
How to hold your cryptos?
The storage of coins or banknotes is often taken care of by banks. On the contrary, for cryptos, we talk about wallet and there are several of them. Among the most famous, we can mention coinbase wallet. Moreover, it should be added that one does not need an intermediary to make transactions. This is due to the dominance of the peer-to-peer system on its operation. In addition, the security of access to a crypto wallet is very high knowing that the blockchain technology ensures the responsibility. Therefore, the data contained in it are unfalsifiable because no hacker can hijack it.
What to do to get cryptocurrencies?
The most common way to get crypto money is by mining. The essential equipment in this case would be the internet and a computer with high computing power. To do this, we can invest in the purchase of asics equipment, or otherwise mount our own equipment. It should be remembered that mining crypto, is to solve very complicated math problems. From there comes the validation of block to then add it to the chain. For each valid block, the miner is rewarded. It can be Ethereum, litecoin, dash, monero... Currently, at the sight of its price, people mine mostly bitcoin. Sometimes they work individually, sometimes in groups.
The investment in mining equipment is also very expensive. But moreover, it turns out to be extremely energy consuming, significantly increasing the amount of power consumed. Fortunately, there is another option available to people. In particular, we are talking about buying cryptocurrency. Affirmatively, we can buy it. How? By going to platforms like Binance, coinbase, eToro etc. Note that some sites are rather for beginners while others for experienced. Of course, in order to be able to store the desired crypto money, it would be better to have a good crypto wallet.
What does it take to invest in crypto currencies?
One can start by asking about the advantages of owning crypto money. By illustration, it can serve as a financial asset besides being a payment option for online purchases. Otherwise, it is also conceivable to employ it via crowdfunding. Apparently, some companies are opening their doors to this electronic currency as an investment for their project. This is in addition to the possibility of crypto trading. Of course, in this case, we will have to find a broker and create an account on the platform of our choice.
Then you should choose which cryptocurrency to invest in. Obviously, there are a multitude of digital money categories in circulation around the world. At the top is bitcoin, approaching over $40,000 a piece. In second place is Ethereum with over $3,000 per unit. Compared to its prices, it would be wise to invest in Bitcoin. Obviously, it is the best option if you want the investment to be profitable.
What is crypto trading?
Trading is an activity that has become increasingly common in recent times. Performed by financial agents, its purpose is to create value through speculation. Certainly, financial assets are the starting points. It can be a question of company shares, contracts, euro... So, for cryptocurrency trading, one speculates on the price. As a reminder, the latter is constantly changing. Thus, financial operators juggle between buying and selling their digital currency to make a profit.
To do cryptocurrency trading, the same conditions apply as for stock market trading. In other words, one needs a broker to assume the role of intermediary. In addition, we need to decide on the trading platform on which we can invest in Bitcoin for example. Then we must create an account on the site in question and fund it. The best platforms of the moment in the field are: Bitpanda, Etoro and Coinbase. Finally, we should not forget to register to a crypto wallet. Among the most reputable wallets, we can mention Electrum. Also, bitcoin wallet is in the best list.
What are the risks involved in investing in crypto?
Invest in Bitcoin or any other crypto-currency does not eliminate the possibility of losing money. Certainly, the security of wallets and cryptocurrency is praised with regard to the blockchain. However, one can still be scammed. The web is clearly full of all kinds of sites. Especially, while there are legitimate ones, others are scams. Therefore, you'll have to be very careful when choosing exchange or trading platforms. Note that to warn users, the Financial Markets Authority has established a blacklist, exposing those that are not reliable.
The loss of capital by investing in cryptocurrency can be explained by the volatile nature of the core subject. As a reminder, prices are unstable, varying unpredictably. Therefore, if we buy any crypto, there is no guarantee that we can sell it and make the maximum profit.
