Cryptocurrency

ABC Crypto, Lesson 12: How to invest in cryptocurrencies?

If you have followed the lessons of ABC Crypto, at this point you are probably wondering. “Very well, you convinced me that the Blockchain and the cryptocurrencies are the future, but How do I invest in them?”. As it is to this question that we want to answer in this article. Where we will tell you so simple as to invest in cryptocurrencies.

What to do with the cryptocurrencies?

But, as is our custom in CriptoTendencia, we want to begin this lesson, contextualizing it a bit to the ground. And in particular, talking about the things that can be done with the cryptocurrencies. Therefore, it would be a complete nonsense to acquire criptoactivos without understanding very well that functions, we can give them. What turns out to be a very common mistake for those who invest by pure ambition, and ends up leading them to failure. As you already know by now, the cryptocurrencies are virtual coins on a decentralized basis. Which offer not only the capabilities that the fiat money normal. But they are also vehicles to take advantage of important features of the technology Blockchain. Such as contracts, intelligent, and decentralized applications. Therefore, to have a criptomoneda is not only to have a coin more. But, the versatility of these assets translates into versatility in the utility that we can give them. Whether as a currency to purchase goods and services, through to international financial transactions, vehicle for creating contracts smart and dApps, or simply financial assets such as stocks or gold. The limit of virtual currencies puts who owns them. So, before you even start to invest in cryptocurrencies, we need to be clear that we want to do with them. And this also lets us know in which currency to invest. Therefore, if we believe faithfully that the contracts intelligent people are the future, and all assets related to them is destined to succeed. Why should we invest in Bitcoin and not in Ethereum? Luckily, and to guide you in this process, accounts with the reviews of CriptoTendencia of the virtual currency the most important. To find out which is best suited to your objectives. Whether they be financial or personal.

Choosing an exchange

The next step, once we have defined that we want to acquire our cryptocurrencies. Is to choose which exchange we use to purchase them. After all, we need a platform that allows us to exchange our fiat money for the virtual currency of our choice. To do this, above all, it is crucial to compare the reliability of the company in where we put our money do you have theft constants? What is popular among users or no one knows? What guarantees can you offer me for my money? What are their privacy policies? In what country are registered, and what laws you follow? All these are crucial questions to be done in order to discard those exchanges where ever we will do business, those that deserve our confidence to invest. Once we find an exchange and competent political decent. The next step is to see if the same is adapted to my financial needs. To do this there is another series of factors that take into account: Currencies accepted for operacionesMedios of payment accepted waiting Time for giving effect to deposits and retirosComisiones charged for deposits, withdrawals, and operations financierasCriptomonedas traded on the platform If all these elements convince us once more. We can start to analyze all of these factors loose, but important, that we have to take into account. Among them are, of course, the leverage offered by the exchange. A determining factor for any trader, at the time of investing in a financial asset. Also, it is important to see that other products offer the exchange. From types of accounts different, future contracts, educational materials, or news services. All of this should be thoroughly analyzed, to take an informed decision when choosing exchange. Remembering that the money that arriesgaremos is ours, and therefore we must be careful before committing to any. Of course, there are some exchanges recommended, in that in general people can place their confidence. Among them would be Binance, Coinbase, Coinmama, SatoshiTango, or BKEX. But you even should be analyzed carefully, before you put a single dollar within their platforms.

What strategy to follow?

Finally, and although we will dedicate one of the lessons of ABC Crypto to the tips for the investment in cryptocurrencies. It’s worth talking a little bit about the strategy to follow before you enter the market criptoactivos. And above all, the importance of mixing the main types of analysis, the fundamental and the technical. Fundamental analysis is one which seeks to explain the movements of the market from externalities. Which may affect positively or negatively the value of the currency. This is a type of analysis very well known here in CriptoTendencia. Therefore, it is the one we use to, for example, explain why the tensions between Iran and the united States make grow up the price of Bitcoin. For its part, technical analysis tries to explain and predict the future of the market through the use of graphs and statistics. Analysis is mostly quantitative, which seeks to understand the forces that operate within the market and result in price changes in the same. And is the other type of analysis that we often use in CriptoTendencia to explain that occurs in the crypto market. Learn technical analysis to invest in cryptocurrencies is available to everyone thanks to the Internet, of course, stay with only one of these types of analysis would be incomplete, to invest in cryptocurrencies. Therefore, if we do not understand where it is going a criptomoneda. Both from the internal forces of the market that we show the graphs, as the external forces that we see in the news. We will not be able to make an investment successful. This forces us to deepen in both types of analysis to successfully invest in the crypto world. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.

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About the author

Caroline W.

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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