What is cryptocurrency? How to invest in encrypted currencies? Our Top 10 virtual currencies in circulation! Operation, uses and recommendations, find out everything you need to know before investing in digital currencies such as Bitcoin, Ethereum, Litecoin, Ripple … which are no longer virtual.
The first tip to invest in cryptocurrencies is that you must educate about the numerous alternatives before choosing to invest in one or a set of cryptocurrencies.
Despite growing doubts about the existence of a bubble around most of these cryptocurrencies, it seems evident that blockchain, the technology behind these cryptocurrencies, has come to stay and transform all kinds of industries. Here are some Tips for traders that need to be counted:
Not invest too much
You know how much is too much, and that varies greatly from person to person. If you are not sure, invest less than you think, that way you can minimize the mistake of investing what you should not.
In the beginning it is easy to get carried away by comments, rumors, news, more than solid information, with foundations. It is normal for that to happen.
Something very healthy as an investment strategy in such volatile assets is to determine what total percentage of the investment portfolio will be assigned to cryptocurrencies.
At most 1%, 2%, or perhaps some more risky and daring rise to 5%. More than 5%, can be fatal in any of the customary violent shocks that the cryptocurrency market has.
Invest in Bitcoins
The coolest way for people investing in this ecosystem is by buying bitcoins, which they like to characterize as a follow-up inventory that represents this exciting new frontier in technology, and muchmore.
Buy multiple digital currencies
One of the largest cryptocurrency trading houses, from the beginning firmly believed in cryptocurrencies in which he has invested millions of dollars, allowing him to increase his fortune estimated today by around 700 million of dollars.
Short-term trading is possible
Short-term trading is when you buy cryptocurrencies and only plan to keep them for a short time, and then sell them when the value is higher than when you bought it. The benefit of short-term trading happens to be that you will have the opportunity to make a high percentage profit.
Long-term trading is preferred by many
Many cryptocurrency traders hold their coins for a long time because they know that the price of the coins will eventually rise in large quantities. This means holding the coins for more than a year.
Now, remember that cryptocurrencies are very volatile, so depending on the type of operator you want to be, you will need to have as much information as possible.