The digitalisation is revolutionising the financial world. One example of this evolution is the creation and use of cryptocurrencies, also known as cryptoassets. These are digital forms of exchange. Secure digital currency investment is gaining popularity as more people explore the opportunities these digital assets offer. Financial regulations ensure that these assets are used responsibly and securely in the broader financial system.

Cryptocurrencies function as currencies, but not in physical form. They exist in a digital universe, stored in a wallet as digitised assets. They became widely used starting in 2009, and their adoption has grown since then.

Cryptocurrencies are becoming an essential asset in many investment portfolios. However, they present challenges for investors. That’s why we bring you this guide, which will help you start investing in cryptocurrencies easily.

Let’s make clear what are the advantages of investing in cryptocurrencies

These are global currencies. They are decentralised and not regulated by specific governmental organisations or financial institutions. This allows them to be used anywhere in the world without any conditions.

The transactions made with cryptocurrencies are secure. Due to cryptographic techniques, it is impossible to duplicate or counterfeit them. This ensures their transactions are safe.

Immediate payments are possible with cryptocurrencies. As long as you have the investment, you can make transactions anywhere in the world with just a click. The exchange process is accelerated, so transactions happen instantly.

Cryptocurrencies allow anonymous transactions. For those who do not want state monitoring when doing business, this is an important and attractive advantage.

They also provide protection against inflation. Since they exist in a fully digital market, they are less affected by traditional financial fluctuations.

Let’s start with this question: What should I do initially to invest in cryptocurrencies?

Mainly, you must create an Exchange account, which 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. For secure digital currency investment, it is important to select a reputable exchange that offers a safe environment for your transactions and assets.

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:

Leverage limitations

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

There are different digital currencies. It is important to understand how the one you wish to acquire works and what its benefits are. You should learn how it moves in the market. Once you have this knowledge, you can determine if it is sustainable. After your research, you will be able to make an informed decision.

Financial regulations are also crucial. They ensure the legitimacy and security of the digital currency you’re investing in.

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. Anonymous transactions can be a factor to consider, especially if privacy is important to you during your investment decisions.

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.

Final tips

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 for secure digital currency investment, it is very important to get into an investment with a good future. Choosing the right assets and platforms will ensure the security of your investment and maximize potential returns.

Currently, digital currencies are currencies, although not physical, well known, used almost everywhere in the world with a 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.