Cryptocurrency trading is not secure, but it is certainly a very lucrative business. That is why there is a saying – who does not take risks, does not profit. More and more people are turning to invest in “new gold”. Although the value of cryptocurrencies recorded a significant decline in February and March this year when the COVID-19 pandemic was declared in almost all countries of the world, we can say that the situation has stabilized and the value of cryptocurrencies is improving day by day. Nevertheless, the value of cryptocurrencies is still about 30% lower than it was at the beginning of the year.
What is cryptocurrency?
The best and simplest definition is that cryptocurrencies are digital money and that despite not having a printed form, they have value. The only difference between this virtual and paper money is that cryptocurrencies are not tangible and since it is decentralized money, there is no central control authority. It is very difficult to say how many different currencies there are, but according to some estimates, it would be said that there are about five thousand of them. Still, some stood out in particular. One of them is Bitcoin for sure. Even those who know nothing about this higher trading and investing have heard of this currency. Bitcoin was created in 2009. It was created by a group of people under the pseudonym Satoshi Nakamoto. To prove to you that it is worth investing in virtual money, we will say that the value of Bitcoin in the period when it was created was only $ 0.003, and today’s market situation shows us $ 11,368.80! In addition to Bitcoin, there are many other currencies worth mentioning – Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and many others.
Where to invest in?
We have already said that with cryptocurrencies you can do everything with ordinary money. When it comes to investing, you can trade cryptocurrencies, invest in stocks, or engage in mining. Whichever way you choose to invest and earn, it is important to be patient, because the market is unpredictable – sometimes the value of certain currencies changes several times a day, and sometimes you will have to wait a few days for good earnings.
How to increase chances to earn?
Invest in multiple currencies
This is a very good way to protect yourself from loss because, in the event that the value of one currency falls rapidly, you will still save most of your invested money. If you decide to mine, know that you will have to wait a little longer to earn. It is also advisable to join a mining pool, as this increases your chances of winning.
Get trading software
Cryptocurrency trading is a very demanding job and it takes a lot of time to spend in front of a screen following the market situation. However, many do not want to sacrifice the time planned for their loved ones and spend it in front of a computer but opt for software that will do the job for them. Why is it good to use these software applications? The answer is very simple, the software detects changes in the market faster thanks to artificial intelligence. Be sure that with the help of it, you will be faster and the fastest and most experienced trader. Research has shown that using the right software you will always be 0.01 seconds ahead of the fastest trader, which can be crucial in this world of trading.
Another very important thing is that they are very easy to use, the interface is reviewed, and for every change, even if intended, you will receive a notification. Applications such as Goodcrypto will allow you to always be up to date in a very simple way. The big advantage of these applications is that they are accessible for both Android and iPhone, and the only thing you need in addition to the phone is Internet access.
Follow the market situation
It is very important to follow the market situation. Do the research. Explore. Sacrifice your spare time. Very often, those who do not know much about the cryptocurrency market decide to pay a broker who will help them reach the desired profit. While your goal is to make money, not spend money, know that getting started is always hard and that making money requires certain investments.
Where do I keep cryptocurrencies?
Just as we keep ordinary money in our wallet, so we work with cryptocurrencies, but with one difference. For digital money, you need a digital wallet as well. There are two types of wallets – hot and cold. The hot wallet is more exposed to hacker attacks given the fact that it requires access via a browser. Another type of hot wallet is Desktop, but your money is only safe until you connect. On the other hand, we have a cold wallet, which requires more money than a hot one. However, consider this a smart investment and be sure that your money will stay where it is.
How can I buy it?
You can buy cryptocurrencies in several ways – peer-to-peer, using vouchers, through exchange offices, but by far the most common way is through ATMs. The number of crypto ATMs in the world is growing day by day. All you need to do is swipe your card and make a purchase. Of course, you will need to have the already mentioned digital wallet to have a place to store your money.
Before you start investing, do a little research, check the market situation. Do not run away from lesser-known currencies, because they can also make very good money. However, the most important thing is to be aware that there is a chance to lose, so the rule is to invest in more different currencies and never more than you are willing to lose. Now that you know the basics of how to buy cryptocurrencies, where to store and invest them, the only thing left for you to do is put your knowledge into action and start with earning!