Before starting with cryptocurrencies you have to assess your risks
When starting with cryptocurrencies, first of all we must take into account the risks of cryptocurrencies that we assume in this type of investment:
Volatility: Cryptocurrencies are highly volatile instruments. Price variations are abrupt, in a short period of time and less predictable than in other types of investment. For example, the TRX price now can be very different from the TRX price 5 minutes later.
Lack of knowledge: the cryptocurrency market is still a great unknown, users are usually aware of cryptocurrencies but do not understand the technology that supports it or the functioning of the market.
Cryptocurrency fraud or scams: They have become a hotbed for fraud and scams. It is necessary to be very careful when selecting projects or platforms where we are going to invest.
Tips to start investing in cryptocurrencies
If you already know that you want to start investing in cryptocurrencies, we give you six tips that will come in handy in the future:
Learning and training will be your greatest ally. It is very important to know what we are going to invest in and therefore we will know the advantages and risks that we are assuming. We should not choose an asset because it is fashionable, but because we understand it and believe that it will have a great future due to its usefulness.
Choose a trusted platform to start investing. Do not get carried away by “unknown” platforms that offer great advantages or make you rich in a short time.
Start with Bitcoin and Ethereum. As volatile as the market is, these two assets are the strongest in the market. It is recommended to have most of the portfolio made up of these cryptocurrencies and diversify with other alternative projects. For info, ETH/USDT is one of the most popular pairs.
Invest the money that you are willing to lose and do not need in the short or medium term. In addition, it is recommended to invest little at the beginning, to familiarize yourself with the market.
The key is in the long term. Have a vision for the future. Do not sell at the slightest drop or panic. Market history proves long-term investors right.
Store your cryptocurrencies in a wallet or purse. It is the safest way to store them, you will be protected against possible hacks or bankruptcy of the investment platform.
Where to start with cryptocurrencies?
There are different ways to start trading with cryptocurrencies depending on the type of operations we want to carry out. The most common ways to operate are the following.
From exchange platforms or exchanges
Cryptocurrency exchanges are platforms where we can buy, sell and exchange cryptocurrencies. It is combined with digital wallets. There are a large number of these types of platforms with different options, but they are all based on the acquisition of the asset.
They generally do not offer demo accounts so it is not possible to test the functionalities with virtual money.
From trading platforms or brokers
In cryptocurrency brokers it is possible to invest with cryptocurrencies. Generally this is done through CFDs. The asset is not acquired, but its evolution is speculated on. Profitability can be obtained whether the asset rises or falls in price, provided that the prediction at the opening of the CFD was correct.
These platforms often offer demo accounts. These will allow us to operate with virtual money and without risk, to put into practice the investment strategies prior to operating with real money. This is the best way to start with cryptocurrencies, as you will learn more about their behavior and investment formulas to try to carry out your operations in the most efficient way possible.