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Do you know how to invest in cryptocurrencies? Know what you need to do it
With the technological boom that currently exists around the world, it is almost impossible that you have not heard of cryptocurrencies. Although like a huge number of people, you probably don't really understand how these digital currencies work.
Many people are currently betting on these coins, and they invest an exaggerated amount of money in them. Of course, it is not just throwing money without further ado and expecting immediate remuneration, crypto is complicated and must be known thoroughly.
If you are interested in investing or want to know more about cryptocurrencies, here we will show you everything you are looking for. Let's start with the essentials, let's get to know cryptocurrencies.
What is a cryptocurrency and how does it work?
Cryptocurrencies are a type of cryptographic code that has been assigned a monetary value within the economy. It is the same thing that was done to give value to a paper like the dollar, or precious stones like gold.
The difference is that cryptocurrencies do not exist in the physical world, they are just digital representations that have been assigned a value. Another difference would be that this currency is completely decentralized, which implies that no entity, bank or government intervenes in them.
We understand that cryptos are intangible, but somehow they remain "palpable" something that many do not understand. This we must thank the blockchain technology that not only makes them tangible, it also makes them secure, but how does this work?
This is the technology behind many cryptocurrencies, in short it is a huge ledger. Let's take an example, in the case of the dollar, people need a third party (like the bank) to validate their transactions.
Thanks to the blockchain, people can make these authorizations on their own when they trade cryptocurrencies. Each transaction carried out so far is specified in this blockchain, and any user can see it, since it is public.
To make a crypto sale and purchase, individuals must create a unique cryptographic "signature" or code that authorizes this move. This undoubtedly makes these digital currencies the safest in the world, even more than any physical currency.
If we talk about the most used cryptos, the first to appear or the most expensive, we will undoubtedly refer to Bitcoin and its entourage. Although it was not the first to be produced, it was the first to be accepted by a huge number of people.
Along with it, it is accompanied by Bitcoin Cash and Bitcoin Gold, which are forks in the Bitcoin code that created their own rules. In the first case the transactions are much faster, and in the second the currency gives more profits when it is mined.
This term refers to all those cryptos different from Bitcoin or that arose after it. In this case, the most popular would be Ethereum, which has “smart contracts” or smart contracts that govern its ecosystem.
Among the other altcoins we can find Litecoin, Dogecoin, Ripple, EOS and many other cryptocurrencies with their own ecosystems. At present we can find thousands of these currencies, of which some are more stable and marketable than others.
What do I need to safely invest in cryptocurrencies?
The first thing will be to decide in which cryptocurrency to invest, in this case without a doubt Bitcoin and Ethereum are among the first selections. Although you can research each crypto separately and start using the one that suits your needs.
After this, decide how much money you are going to invest, if you do not have the amount of money equivalent to a coin, do not worry. Cryptocurrencies allow you to take a fraction of the currency without having to take it in its entirety, in Bitcoin these fractions are called satoshis.
The person from whom the cryptos is purchased must also be taken into account, since they must be completely trusted. You can also use platforms for the exchange of cryptocurrencies, which offer excellent security systems.
If you already know how much to invest and where to buy, you will only need a place to store them after purchasing them, for this there are several options.
Decide on a 100% secure wallet
There are a huge number of wallets or digital wallets throughout the internet, although not all of them are secure. You must make sure that the wallet you choose is recognized worldwide, in addition to having several security protocols that are truly personalized and infallible.
There are many platforms on the web that allow you both to save your digital money, as well as to provide a safe space for its exchange. They are undoubtedly a good option, but there is no better option than keeping your money in your own device.
Digital currencies can be stored inside a computer, a pendrive or some device designed for this. The prices are accessible and your money will be perfectly safeguarded by yourself.
Secure platforms to invest in cryptocurrencies
Cryptocurrencies can not only be bought and traded, many people literally live off their income from crypto. There are many ways to do it and here we will show you the best and safest ones.
How to invest in safe trading platforms?
These platforms abound on the net, but not all of them are real, a large number of these are a complete scam. If you are thinking of trading to take advantage of these currencies, it is best to make sure that the platforms are safe.
The first thing is to look at the broker regulators that exist in your country of origin, since they are in charge of taking care of users' money. If the broker you want to use is perfectly regulated, it means that you can trade without risk.
Another way to make sure is by looking at the opinions of other users, there are web pages where thousands of users comment on their experiences. Once you are completely sure, you can start researching and learning how to trade.
How to mine cryptocurrencies?
For this, you will need to learn a lot about the operation of the cryptocurrency that you are going to mine. Once you choose the one that suits you the best, it only remains to invest in mining machines, which are nothing more than powerful computers that solve algorithms.
The more powerful the machine, the more money you can get, the idea is to own several miners to improve production. You must remember that they consume a lot of electrical energy and tend to get hot, so you must have a way to cool them.
There are many companies that offer mining in the cloud, which means that they mine with their equipment and the belonging users earn a share. It is really not advisable to invest in these pages because it is very easy to scam users with this modality.
Long-term investment with cold wallets
If you have a cold wallet or have your own crypto storage devices, you can use this option. Buy a certain amount of coins and leave them stored for years, their price will undoubtedly increase and you can get a good income.
Just remember to do it with stable cryptocurrencies that have a good chance of increasing their price. This is a widely used case with Bitcoin and Ethereum.
Invest in crypto games
The rise of play to earn games has surprised many investors, who know how to take advantage of them. In these games, basically every time you win, you receive remuneration in game tokens, which can be exchanged for cryptocurrencies.
Many games also allow you to create these tokens through specific actions, or by selling NFTs. Before investing in these games remember to review their regulations, the veracity of their platform, their acceptance and the investors involved.