Cryptocurrencies How to start?

Irene de EspinozaFollow

Nov 23, 20216 min de lectura

Before starting in the world of cryptocurrencies, some important aspects should be considered.

The first thing is to understand that this type of asset is decentralized and that it does not have any type of agreement with governments and banks, and the other point to educate yourself a little on this subject.

The price of the asset is regulated by the supply and demand of the users who manage it, thus making it a volatile asset, not suitable for conservative investor profiles.

That is why it is recommended that before investing you know the risk profile that exists with this type of investment.

The most secure platforms are known as exchange platforms. Without these platforms, what you could achieve would be to mine bitcoins or invest in funds that contain a portfolio of some cryptocurrency, but you could not carry out any other operation.

Wallet An important starting point!

Choosing a wallet or purse would be one of the main things that should be considered, since the digital wallet will be the refuge of your cryptocurrencies once you have already purchased.

It is also a software that manages access codes to all your digital currencies.

Certainly there is a great variety of wallets, however, all this depends on the level of security of the same ones that start from complex smartphones to hardware passing through those of the web.

Trade at your own risk

It is also advisable that you do not invest money that you are not willing to lose, since the occasion may come that if you end up suffering a bearish period you will be financially affected and lose the money that you have possibly raised with so much effort.

Clearly, if you have already studied the rise and fall of said cryptocurrency, you will surely not have problems with the market.

Training is a fundamental part, as well as getting informed and reading news before investing in any type of asset and especially if it is in the world of cryptocurrencies.

Learn about cryptocurrencies by various means

Certainly, there are many blind spots with this type of investment and it is advisable to have a good foundation before investing.

Currently there are a certain number of programs or companies formed that invite you to specialize in analysis of business models based on blockchain.

As well as the understanding and evolution of the tokenization of assets and the issuance of tokens for the grant of business projects, the new practical and profound uses of blockchain technology. Highly relevant prospects for the future of the economy.

Investing in cryptocurrencies through new financial methods and portfolio management theory, learning the technical fundamentals of blockchain technology.

Contemplation of basic notions of programming and applications of Smartphones.

Detailed understanding of the evolution in cryptoeconomics and the origin in your current relationship. If you have already started investing in cryptocurrencies, it is a good start and even more so if you have come to take into consideration everything that has been stated so far.

Bitcoin the number one cryptocurrency

If it is true that there are many cryptocurrencies, but the most popular, followed and with the most information is bitcoin.

Investing in Bitcoin is one of the best ways to start, since being the most popular and the best known is the one with the highest capitalization, it also provides greater security and great liquidity.

The impressive thing about bitcoin is that this currency is divisible up to 8 decimal places, which means that you can buy fractions of it.

The good thing about all this is that to start buying bitcoin you can do it with just one dollar. It all depends on your personal situation, goals and of course your financial situation.

Important recommendations for investing in cryptocurrencies

These are some recommendations that can be provided so that you gain a little confidence with bitcoin and cryptocurrencies and become a prudent investor.

1. Do not invest more money than you are willing to lose, do not put your financial assets at risk and less your basic family survival. Don't go into debt to buy bitcoins or other cryptocurrencies.

2. Completely distrust people or companies that promise you great profitability, only buy bitcoin from companies or people you trust with whom you can verify the reputation and quality. Don't share your wallets or private information.

3. Do not use your wallet on unknown computers, much less access your wallet on unknown cell phones. Add double authentication factors to your wallets and keep backups in a safe place.

4. Sell your bitcoins to established companies and receive bank transfers in the form of payment. Once you have already bought your first bitcoins or fragments of it, you can use it to expand your portfolio.

5. You must be a completely diligent person with the respective investigations before buying any cryptocurrency.

Do not fall into the boom and do not go to buy any type of cryptocurrency if you have not investigated it before, even if third parties tell you and assure you that it will be the new bitcoin.

6. Buy only those cryptocurrencies with which you have become favorably familiar with investigating them so that your consideration and your study is what determines that there is a tuning and determination that dictates that it is convenient to buy it.

Long-term investment vision

It is necessary to have a long-term future vision, since the fundamental idea of cryptocurrencies is centralization in the medium-long term if we want to make money with bitcoin and cryptocurrencies.

The idea is to obtain profits in large phases of rises of the cryptocurrency and move away in periods of low and uncertainty of the same currency, thus taking into account that you must invest in the initial process of the upward cycle of the digital currency.