How to easily start investing in cryptocurrencies
The digitalisation is nowadays a revolution in the financial world, an example of the digital and financial evolution is the creation and use of cryptocurrencies or also called cryptoassets, these are known as a kind of digital medium of exchange.
Cryptocurrencies have this name because they fulfil the function of being a currency (as their name already indicates) but not physical but in a digital universe in which they are stored in a wallet in a digitised form. They came into use in 2009 and from then on their use has taken off.
This seems to be a super important and essential asset in many investment portfolios, but at the same time it is not an easy market in which to invest for this reason we bring you this guide in which you can find the way out of how to start investing easily in cryptocurrencies.
Let’s make clear what are the advantages of investing in cryptocurrencies
These are global currencies: that is, they are decentralised and are not regulated by specific governmental organisations or financial institutions and that is why they can be used anywhere in the world without any conditions.
The transactions you can make with them are secure: due to cryptographic techniques it is impossible to duplicate or counterfeit cryptocurrencies, which is why their transactions are so secure.
Immediate payments: with cryptocurrencies you can have whatever you want as long as you have the investment anywhere in the world at the reach of a click, with them the exchange process is exorbitantly accelerated so transactions are immediate.
It allows anonymous transactions: for those who do not want to be monitored by the state at the time of doing business, this is an important advantage that is very attractive.
It provides protection against possible inflation: since they are in a fully digital market.
Let’s start with this question: What should I do initially to invest in cryptocurrencies?
Mainly you must create an Exchange account, this is known as an exchange platform where you can change euros to cryptocurrencies and the platform retains a minimum commission, there are many types of cryptocurrencies and also many platforms so you will have to choose the one that has the currency in which you want to invest.
The concepts of cryptocurrency exchanges and cryptocurrency brokers are often confused, but they are quite different.
So… What is a cryptocurrency broker?
This is an intermediary in the process of buying and selling, it is responsible for selling the cryptocurrencies it has at the price it wants and with the commissions it considers, i.e. the broker sets the price once the user agrees to sell their cryptocurrencies. The broker is in charge of advising the trader so that the investment is safe.
For this reason it is very important to choose a good broker.
It is very important that the broker is transparent and professional as it will be the company in charge of receiving the money and executing the operations requested by the user. Selecting a good broker is an investment, so it is important to bear in mind that it may be a little more expensive in terms of commissions.
Losing your savings is not an option and would be much more expensive than any commission you could pay, in itself is not an option and that is why it is of utmost importance to select a reliable, authorised broker that has the relevant licences in terms of MIFID regulations, i.e. that has certain characteristics such as:
User protection against negative balances
It must be able to differentiate between small investors and professional investors.
If you have doubts about how to choose a good cryptocurrency broker, here is a guide with the best ones.
How to start with this process
It is very important to take into account several aspects that will facilitate the understanding of your investment is why you will have to:
Know what you are going to invest in
Know that there are different currencies and that is why you will have to know how the one you wish to acquire works and therefore what its benefits will be, that is to say, how it moves in the market so that once you have knowledge of it, you can determine if it is sustainable and after this study you will be able to make a decision.
Invest an adequate amount
This is when we can think about the rule: invest only what you are willing to lose. You will have to think about whether it is money that you may need to pay some essential expenses such as, for example, a sudden illness or redundancy. Think about it and know if it is money that you are investing too much. The key is not to destabilise your finances.
Specify the investment timeframe
Once you have selected the currency in which you want to invest, you will have to think about whether this investment will be short or long term, i.e. whether you are going to change currencies in a month, four months or a year.
At this point it is up to you to decide, but it is very important that you have a broad view of the market. Take the time to analyse what investments you can make. One tip to keep in mind is that you can focus your attention on long term trades once you have analysed the gains you can make in the upswing.
Anyone can make significant profits by investing in cryptocurrencies, you just need to know how to invest in them at the right time. Digital money is the future and it is very important to get into an investment with a good future.
Currently they are currencies although not physical, well known, used almost everywhere in the world with good future and part of what can be a good investment, you just have to remember to select a good broker, not to lose more than you could win and know when to invest your money.