A general guide for anyone who wants to start investing in cryptocurrencies, or trade them with the cryptocurrency exchanger
Bitcoin was considered nothing more than an interesting phenomenon when it first appeared in 2009. Technicians and futurists could see the future potential of cryptocurrencies in general, but this did not attract particular interest as an investment.
But over the years, as hundreds of other cryptocurrencies have appeared and disappeared, Bitcoin has become the standard bearer of this currency. This moment was not missed by investors and speculators. Some are beginning to value cryptocurrencies as an alternative global currency, which will eventually replace sovereign currencies like the US dollar and the Euro.
But the trading activity has also attracted a large number of speculators. They are betting on cryptocurrency trading – Bitcoin in particular, with stakes going up to the moon. Speculators rarely take fundamental factors seriously. They see the sudden and drastic rise in prices, and whatever the asset is, it grabs their attention.
This article is not intended to support Bitcoin or any other cryptocurrency. Instead, it is a general guide for anyone who wants to start investing in cryptocurrencies, or trade them with the cryptocurrency exchanger. It is very likely that cryptocurrencies will continue their advancement over the next few years. And if you are betting on this outcome, we hope this information will help you.
The cryptocurrency is based on blockchain technology. It is a chain of information registration and distribution that is not controlled by any institution. Instead, it works like the recording of digital transactions independent of central banks.
There are all sorts of technical details associated with blockchain technology, which are probably worth investigating, if it does not result in a technological coma. But, in effect, it removes the middleman – for example a bank – and allows buyers and sellers to do business directly with each other. This should also serve to reduce or even remove transaction fees, which is a major part of cryptocurrency involvement.
A more popular cryptocurrency is Bitcoin, the price of which is regularly monitored in the largest financial media. But in reality, there are hundreds of cryptocurrencies, many of which have already come and gone.
At the moment, it appears that the two main attractions of cryptocurrency are:
And for those, who bought the cryptocurrency before the price explosion in 2017 or the last price hike in 2020, this has probably been the best investment in many portfolios.
So, what should you do, if you want to join the cryptocurrency promotion?
As you can imagine, you cannot go to your local bank or even a brokerage firm (there is one exception, which we will discuss later) and buy cryptocurrency. This is still regarded as something exotic in the world of financial institutions. Since it is not well researched and practically unregulated, most financial institutions don’t want to do business with it. For this reason it tends to work within its own network.
Check out our tips if you want to start investing in cryptocurrencies.
He will have to decide in advance, how much of his wallet he wants to allocate for the cryptocurrency. Taking into account the latest advances, especially in the price of Bitcoin, it can be difficult to make a rational decision. All investments are driven by the combination of greed and fear, and it can be difficult to keep the greed part in check, taking into account the success of cryptography shown in recent years.
But despite everything, cryptocurrency only needs to occupy a small portion of your wallet. How much exactly is entirely up to you. But you have to be careful investing more than 10% or even 5%.
You must understand, that cryptocurrency is not an investment in the same sense as stocks. Like investments in gold and silver, they do not generate interest or dividends. To what extent cryptocurrency is a good investment depends entirely on how significantly it will increase its price and stay there for some time.
Cryptocurrencies were not meant for investments. They are trading intermediaries. They have been widely regarded as the alternative to sovereign currencies such as the dollar, yen and euro. It was believed, eventually, that they would be a more efficient means of commerce, especially on the Internet. This is because its value is strictly determined by the market and not by manipulations, as is usually the case with sovereign currencies.
But, at least up to this point, cryptocurrencies did not serve satisfactorily as a medium of exchange. Only a very limited number of traders accept them, so most of the trade takes place between individuals.
https://godex.io/ru – You trade cryptocurrencies anonymously in any entity with a guaranteed fixed rate.
Up to this point, both the current use and the future of cryptocurrencies remain uncertain.
It is one of the real difficulties with cryptocurrency. This is not unique, but there are hundreds of them. Maybe even more than a thousand.
Complicates the problem, that more and more people are constantly going out on the Internet. This has to be counterbalanced by the reality that hundreds of cryptocurrencies have already come and gone. And the whole concept of cryptocurrency was born only a decade ago.
Now the largest cryptocurrency is Bitcoin. It is also the cryptocurrency that attracts the most attention and investment dollars. In a very distant second place is Ethereum, and there are others like Zcash, Dash and Ripple.
Given its dominance, Bitcoin appears to be more reliable than all the numerous cryptocurrencies available. In fact, Bitcoin has become almost synonymous with “cryptocurrency”. The interesting thing about it is that while the media has been following the Bitcoin price effect closely, some cryptocurrencies have shown themselves even better.
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