What does investing in cryptocurrencies entail?
Cryptocurrencies have gained incredible popularity in recent years. More and more people are becoming interested in virtual money, seeing it as an investment opportunity and an alternative to stocks on modern exchanges. Although even in this situation there is a lot of risk, because the cryptocurrency market is very dynamic, with proper analysis and a dose of patience, the profits you can get reward the hardships and stress. However, how to start investing in cryptocurrencies?
How to start investing in cryptocurrencies?
The first thing you should do is to acquire the necessary knowledge of how the entire cryptocurrency market works, its characteristics and the signals it gives, which not everyone is able to interpret. First of all, remember that the cryptocurrency exchange is extremely dynamic - the decreases and increases of the prices of individual assets depend on a huge number of factors, such as the actions of giant companies, world events, expert opinions, increased interest around cryptocurrencies or statements of influential people. Moreover, gather more information about the cryptocurrency you are interested in, trace how the increases and decreases of its prices looked like.
How to choose the right exchange?
The next step is to choose an exchange. You should do it carefully, because there are as many as 400 such places in the world where you can trade cryptocurrencies. However, most of them are not suitable for buying and selling because there is too little traffic or they are a cover for stealing your invested money.
The first factor to consider when it comes to choosing an exchange is volume. It is an indicator of the activity of investors in a given time frame, that is, how often they bought and sold a given asset. If there is a lot of traffic around a cryptocurrency, its price, and thus its volume, increases. The higher its value on the exchange, the better, because if you want to sell, you do not have to worry about the lack of buyers.
Another thing is the wide selection of cryptocurrencies on the exchange. The more assets available the better, because there is a higher chance that you will see traffic around one that has not been very popular before or is not available on other exchanges. If it is missing from other places, there is less competition, but also less interest in that particular cryptocurrency.
Another factor is the choice between a centralized and decentralized exchange. The first one stores the invested assets and has more requirements on the identity of the investor. An account is created with an ID card, and often this occurs via mail or video call.
A decentralized exchange, on the other hand, does not store the funds, the investor does this himself in a virtual wallet. This type also does not require identity verification, which can be much more risky. This is because these exchanges often attract scammers who offer promising-looking cryptocurrencies at the beginning, and after the funds are deposited, they seize them or the prices suddenly drop and never regain their previous level. In addition, this type rarely offers transactions without charging commissions. On the other hand, a big advantage is that it is the one where all new cryptocurrencies first appear before investors playing on a centralized exchange see them.
Once you know the basic requirements to start investing in cryptocurrencies, now it's just time to open an account on any of the exchanges, invest your money and arm yourself with patience and perceptiveness.
Transactions on cryptocurrencies in an exchange
Impily.com is a virtual exchange that allows you to trade the most popular cryptocurrencies like Bitcoin, Etherum, Ripple, DogeCoin and many others. We protect our clients with mechanisms using advanced technologies, so you can be sure that your assets are safe with us. Selling, buying and holding is completely free, we only take commissions on payments made using them. With our platform you will have access to your cryptocurrency wallet 24 hours a day, 7 days a week.
Attention! The above article neither in whole nor in part constitutes a "recommendation" within the meaning of the provisions of the Act of July 29, 2005 on trading in financial instruments or the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of April 16, 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission Directives 2003/124 / EC, 2003/125 / EC and 2004/72 / EC and Commission Delegated Regulations (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65 / EU of the European Parliament and of the Council as regards organizational requirements and operating conditions for investment firms and defined terms for the purposes of this directive. The content contained on the website does not meet the requirements for recommendations within the meaning of the above-mentioned act, incl. do not contain a specific valuation of any financial instrument, do not rely on any valuation method, and do not identify investment risk.