We will often hear that cryptocurrencies are “new gold”. An increase in investment and trading are recorded day by day. People see in this investment security and a way to provide the best possible living conditions for themselves and their families. The exact number of cryptocurrencies is unknown, but he estimates that there are thousands of different ones. Still, the ones most people have heard of are Bitcoin, Ethereum, Litecoin, Ripple, and others. One, however, stood out in particular. bitcoin.
This currency is the most valuable on the market and we can say that for all this period as long as it is present on the market, it has rarely recorded declines. At the time it was created and released, its value was negligible, only $ 0.03. Today, the value of 1 BTC is an incredible $ 17,788.80! Then we should not be surprised to hear that trading cryptocurrencies is a lucrative business and that in this way many have become rich overnight.
Either way, beginners often don’t know where to start and are therefore skeptical about this type of trading and investing. Here are some guidelines that will make it easier for you to take the opportunity to make money.
We have already said that this money does not differ much from the classic one, except that it exists in the digital world. Just as regular money is kept in your wallet, you will also need one for cryptocurrencies.
But, since it is a digital money, the wallet must be the same. This is the first step you need to take, even before buying cryptocurrencies. A digital wallet can be hot and cold. There are two types of hot wallets, and they are mobile and desktop variants. Whichever you choose, you will be exposed to the potential risk of hacker attacks, as both require internet access. However, if you are still behind the decision to choose a hot wallet, a desktop version is recommended.
On the other hand, we have a hardware cold wallet with which you won’t have the need to think about hackers and losing money, but if you decide to buy it, be prepared to invest a little more money. Consider this a worthwhile investment.
How to start investing?
You are probably already familiar with the ways of investing in digital currencies, such as trading and mining. Trading is a more common way of investing and is considered easier, so it is recommended for beginners. Besides, trading can make money faster and easier, while mining requires a little more effort and time. Mining is usually the choice of experienced “players” who already know which of the mining methods is best and how to join a mining field to increase your chances of making money.
Getting started can be very confusing and difficult. All these diagrams, numbers that keep falling and rising, various abbreviations that you don’t even know what they mean. These are the reasons why beginners usually opt for software applications designed specifically to help the trader find and master the basics.
They are also good in case this is extra work for you and you want to spend your free time with your family, not sitting in front of the screen, because, thanks to artificial intelligence, these applications are able to do all the work for you, it’s up to you to set the settings. the way you want. The creators of these applications claim that artificial intelligence is on average 0.003 seconds faster than any human, which is more than enough to bring you profit if you are skilled.
Protect yourself from the scams
There are many fake cryptocurrency trading sites on the internet, ones that will take your money and disappear overnight. That’s why it’s important to be careful and protect yourself as much as possible. You know that saying “Too good to be true?” If that really sounds like it, then it’s probably a scam. Many also had a bad experience installing apps on their devices, as they served their personal information to hackers.
Experts advise special caution when choosing a trading application. Checked are recommended, and it is important to pay attention to whether the logo is original, as well as whether the name of the application is spelled correctly because these are “catches” that indicate that something is not right. On bravewords.com you can find more tricks and pieces of advice about what to pay attention to when it comes to investing in cryptocurrencies.
Investing in several different currencies
If you follow the cryptocurrency market, then you know for sure that they do not lose value all at the same time. The opposite often happens, while the value of one increase, the other decreases. Just remember March 2020, when the value of bitcoin dropped drastically. Imagine investors who put all their hopes in that currency! Therefore, it is better to invest less money in several different currencies, so that if there is a fall in the market, you do not lose everything you had.
Set an investment limit
It is wrong to expect that yours is just to invest and that the profit will come on its own. You need to be aware that this is one type of gambling and that two scenarios are possible – to lose and to make money. That is you must set a limit, that is, that you do not enter more than what you are ready to continue living without.
From all the above, we conclude that investing in cryptocurrencies is a smart investment even though it carries a certain amount of risk. It is up to you, as an investor, to do everything in your power and to indulge in the investment and the chance to earn a nice amount of money. In the end – who does not take risks, does not profit!