Invest in cryptocurrency to make money

In recent years, virtual currency has invaded the financial market, led by bitcoin. It is now positioned as a way to make money, leading a large number of people to invest in it. Unlike traditional currencies, cryptocurrencies are not governed by any bank or central authority. However, today they are used to carry out multiple transactions, and not just in investments. It is in fact possible today to use cryptocurrencies to purchase products. Some countries have even already made a virtual currency their official currency. If you are also considering following the trend and investing in virtual currencies, then follow our recommendations.

Follow good advice before starting with cryptocurrency

As with any project, it is always best to have basic knowledge to get started. By informing yourself and following the advice of experts on the issue, you reduce the risk of making a bad investment or being scammed.

The importance of being informed

Cryptocurrency remains a complex world, when you are inexperienced. Currencies are not physical and the market is not stable. You cannot get started with virtual currencies without a minimum of documentation on the risks, benefits, the value of currencies and all this information that can help you get started on the right foot. So, if possible, get training before you start. In addition, it would be wise to seek advice from a real expert before launching into virtual currencies. It will guide you in choosing a reliable investment project.

Do your own research on cryptocurrency websites before purchasing. You will be able to familiarize yourself with the concepts of blockchain, staking, token, wallet and others. You will also be able to detect anomalies in a project earlier. There are a multitude of supports such as CryptoCheck tutorials for your information. Above all, keep in mind that you will not make a fortune overnight with cryptocurrencies.

Choosing a platform

We recommend going through specialized online platforms to invest. This is also the simplest way to get started with cryptocurrencies. However, it is preferable to choose a trusted platform that is recognized by the Financial Markets Authority, the body responsible for regulating the activity of players in the virtual currency market. In general, certain criteria allow you to make a wise choice. These include, among other things, the date of creation, proposed transaction fees or even reviews from the platform’s customers. Choose a platform that suits your profile as an investor.

cryptocurrency platform

Learn to differentiate between different cryptocurrencies

Although bitcoin is the best known to date, there are today at least 10,000 virtual currencies in which it is possible to invest. But even more, each currency is different and intended for a very specific use on the cryptocurrency market. There we find tokens and coins (coins). Coins are divided into two categories, altcoins and bitcoin.

Bitcoin

Bitcoin is one of the major cryptocurrencies. It is the dominant currency in the cryptocurrency market. Bitcoin is a digital payment currency which has its own blockchain. One of the advantages of this currency is that it is easier to exchange it for physical currency. It is also easier to make online purchases with bitcoin. Note that the bitcoin mining cap is at 21 million. It therefore has a good chance of retaining its value over the years.

Altcoins

Altcoins are everyone else virtual currencies outside of bitcoin. Some work on the same principle as the latter and others do not. There we find Ethereum, Ripple, Tether, Litecoin and several thousand others. Ethereum, for example, is not just a currency. It is also an application development and hosting platform.

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Tokens

Unlike coins, tokens do not have their own blockchain. They work on that of other cryptocurrencies. They are easier to create and exchange. In general, all tokens have the same value and are interchangeable. They are said to be fungible. But there are also non-fungible tokens or NFTs, which have a unique value and cannot be exchanged with any other. There is also stablecoins which are frequently exchanged. Due to their stability, stablecoins are very popular for carrying out commercial transactions.

Know everything about exchange platforms

Exchange platforms are like a marketplace on which you buy and sell cryptocurrencies. They allow you to exchange your cryptocurrencies for other virtual currencies. They also allow them to exchange for fiat currency. Some are centralized and require you to transfer your cryptos to the site; others, however, are decentralized and give you control of your assets.

The advantage of the platforms is that they save you from the risk of scams. Indeed, it allows secure transactions to be carried out; thanks to them, you are assured of actually receiving the equivalent of the currency you exchange. It is however better not to keep all your currencies on these platforms, and above all to check their reliability.

The most profitable cryptocurrencies

The value of each cryptocurrency is determined by the law of supply and demand. But for a beginner, it is better to minimize risks if you know the currencies that are the most profitable. It is not always easy to classify cryptocurrencies according to their profitability, as the value is constantly changing. Here are some currencies that may be a good investment for you:

  • Bitcoin, which is the most valuable currency and ideal when you want to make a long-term investment,
  • Ethereum is the second popular cryptocurrency and its total supply is not limited,
  • Ripple which is both a cryptocurrency and a digital payment protocol,
  • and Binance Coin which displays a large number of transactions per day.

Note that we also find Bitcoin cash, Litecoin and Cardano.

cryptocurrencies

How much to invest in cryptocurrency at the start?

The point of investing in cryptocurrency is of course to reap interest from your investments. But above all we advise you to study the currencies. Depending on things like the price of currencies or even the evolution of prices, you will be able to evaluate which one will be the most profitable for you.

Holding or trading?

In general, we have the choice between holding and trading to get started in virtual currencies. But it is better to invest in cryptocurrencies for the long term, when you are a beginner. So you can store your coins in a cryptocurrency wallet. The objective, for profitability, is to resell them once the currency has increased in value. This strategy is called holding. Then, the ideal is to first define a minimum amount at which you wish to resell your cryptocurrencies. Trading is often reserved for the most experienced and is done over the short term. There are other ways to invest such as staking.

How to invest?

If you want invest in little-known currencies, you can follow their evolution over a period of three to twelve months. However, whatever the result, we advise you to invest very little in these currencies and much more in already solid cryptocurrencies. Furthermore, it is recommended to invest a tiny part of your savings when you are really starting out. As a result, you limit the risks and damage in the event of losses. Consider securing your cryptos on an external wallet or a virtual wallet on electronic media.

You should keep in mind that no matter how much you invest, the investment remains risky. Cryptocurrencies are volatile currencies that follow the law of supply and demand. So, generally speaking, invest money that you are willing to lose. Once you start investing, consider follow the progress of your investments. To do this, do not hesitate to use specialized applications to help you.