Tips for beginners to invest in cryptocurrency
Cryptocurrency is a trend of our time, as well as new opportunities for investment. It is able to bring high returns, in comparison with fiat investments, but do not forget about the increased risks of the crypto industry.
Basically, the target audience of these investments are people who believe in technological progress, digital coins and the idea that one day they will replace the usual currencies. Also, digital investors include those who believe in blockchain development, prefer the reliability of information preservation and decentralization. But often those who have never dealt with cryptocurrencies want to try investing in cryptocurrencies. So, in order not to burn out in their first transaction, the FlashExchange team.Money has prepared some tips on what you should pay attention to when investing in crypto.
!This article is not an algorithm of actions, nor does it force the purchase of certain assets. Remember that it is always necessary to analyze the market yourself!
So, what should you pay attention to before investing in an asset?
• What is the project. Check out the legend and the main features.
* Explore White Papier. Get acquainted with its technical characteristics and plans for the future.
* Check the project administration. Pay attention to the background of the creators, they should not be listed as a SCAM. Don't make the same mistakes twice.
* Open source code and its automatic updating. You can check it through the Github service.
* Loud slogans about universal profit. If you are promised to make $ 2,000,000 out of 2,000 rubles in a week, do not believe it, this is fraud and often a financial pyramid.
Analysis of the project from A to Z will help you not to fall for the tricks of scammers, assess its prospects and growth in the long term.
Investments in cryptocurrency: recommendations
Tip: buy the cryptocurrency you have already chosen when it has been holding low positions for some time. It is not necessary to take the crypt at the peak. All the same, during the stabilization of the market, its price will drop.
* Develop your strategy. Relying on other people's ideas and developments, you will quickly burn out, not understanding what the problem is. However, the essence of investing in cryptocurrencies lies precisely in the fact that the specialist himself observes the positions of currencies, analyzes the growth and decline.
• If the currency has fallen or increased in price by 10% - 30% in the last day, this is normal. Another question is if the token you have chosen has added 10,000% in price in 24 hours. These changes may indicate that the currency is a "bubble" or a PUMP has been carried out.
* Before the purchase and sale operation, study the market in detail. There is a possibility that the cycle of decline may repeat as well as growth.
I make mistakes all the time, and it's very difficult to predict where the market will go. Even the most experienced traders are prone to mistakes in this area.
Where to buy cryptocurrency?
* Centralized exchanges. Exchanges headed by organizations. You grant the right to manage your information to a centralized platform. A fairly simple interface and a large set of functions.
* Decentralized exchanges. They are platforms that allow for the purchase and sale of cryptocurrencies. The main difference from centralized exchanges is that your information and funds belong to you, and you manage it yourself.
* Cryptocurrency wallets. Many cryptocurrency wallets provide an opportunity to buy digital assets. The disadvantages are the limited functionality of actions.
• P2P platforms. P2P are specialized exchanges that are guarantors of the reliability of the transaction. According to their characteristics, P2P platforms resemble centralized exchanges.
* Exchangers. Exchangers are specialized exchange platforms that provide services for the exchange of fiat money for cryptocurrency and vice versa. The advantages are simple interface and speed of operations. Also, in many areas there is no need to undergo verification, in these cases complete anonymity is preserved.
* Telegram bots. This is a mobile version of exchange services and P2P exchanges. The functionality is similar to the official version of the site of your chosen bot.
What are the types of investments in cryptocurrency?
There are several types of investments in cryptocurrency.
* Standard briefcase. The investor divides the budget allocated for investing in digital assets into several parts. For example, he sends 50% of the total budget to buy a "strong" currency. Which has been on the market for a long time and the chance of a SCAM is small. 30% percent is allocated for the purchase of medium-budget currency, which shows good x's. And 20% goes to buy a newcomer who has recently entered the market, but has great prospects. This scheme allows you to minimize the risks of losing the entire investment budget.
* Trading. Trading is a rather complicated and dangerous type of investment. The specialist studies the volatility of the market, trying to predict the course of growth and decline of digital assets. Against the background of this dynamics, the trader performs purchase and sale operations, withdrawing profits.
* Mining. In the usual sense, mining is the process of mining cryptocurrency. This method carries minimal risks. You buy equipment, install specialized programs designed for coin mining, and wait for profit. In the case of a SCAM project, you can always sell the equipment and get out at no loss.
* The DeFi protocol. This platform is a cryptobank exchange. With the help of the DeFi system, you can earn on interest from lending, and also put a deposit at a percentage.
The world does not stand still. Digital assets are inexorably gaining momentum and are striving to become on a par with fiat currencies. However, before you plunge into the crypto industry, make sure that you have fully studied the basics of this world. Money does not tolerate mistakes. We have tried to make a minimal selection of aspects for you that will help you become a successful crypto investor.
The FlashExchange command.Money wishes you a successful investment!