Although hard work and winning the lottery are legitimate options to achieve your obscure goals, investing in cryptocurrency is, of course, the one. So, you should be aware of with step by step process how you can spend your money in digital currencies, including Bitcoins, for example.
Of course, the first free tip and light disclaimer applies: use common sense. Do not use money that you cannot miss, because ‘trading’ in cryptocurrency is speculating. You can lose, and face win, win situation, even before you can call ‘cunt, I should have gone for Stellar’!
Choose your currency
Since the significant growth in digital coins grabbed the attention of a lot of new investors. The first step in buying is identifying the best coin. There are different approaches for this such as, the affordable options, where you can get and store your cryptocurrency, the emerging currencies that put some value in your investment, most reliable, the best concept, the most stable method? Do proper research into that!
Another factor can be relative growth. For example, in 2017, Ripple increased by no less than 30,000 per cent in value, while the Bitcoin ‘only’ increased 1300 per cent. Unknown coins such as NEM and Stellar also experienced strong growth. These numbers can help you determine the most profitable option.
Choose your wallet
Now that you have made your decision to jump in the crypto world. The very next step is to choose the digital marketplace to invest your money. At least, one service requires more transaction costs but is easier to use than the other, so you could also do this step first. CoinDesk is suitable to trade safely and to be ahead in the game. There 24/7 support and new ways to provide positive outcomes are standout. Binance is another trusted platform, but you should read this first before choosing to trade with them: Hackers Stole $40 Million from Binance.
The platforms demand a different amount of commission (depending on the currency), one company gives certain guarantees while the other keeps its hands at home. It is also quite easy to create an account on Royal C Bank.
Despite the facts, companies provide an exceptional level of securities such as two-factor verifications, QR code login set up, SMS alerts. Creating an account on online cryptocurrency market place involves the linking to your real bank account and credit/debit cards. However, these companies manage your digital wallet, but it’s your responsibility to treat it like your ‘real’ wallets. Only give your pouch to people/companies that you are 100% trustworthy.
How does Crypto Currency Financial system work?
It is not rocket science, but actually, it is. This system is straightforward to learn and use. It involves a secured network of data storage and encrypted system of transactions so that no one can alter the information is known as the blockchain. This blockchain system record all the deals in the shape of ledger and blocks, thus making a secure and end-to-end encrypted with a set of numbers, digits, and words forming a key. And this whole chain system is termed as blockchain.
Investing in cryptocurrency involves profit as well as loss and may engulf your life earnings.
Let’s take a look on an example: As there is a tremendous fluctuation in price graph of all cryptocurrencies. A person bought a bitcoin in Dec 2017. At that time the Bitcoin was at its peak value in the history trading at 21,000 USD / 1 bitcoin, and now on January 30, 2020 trading at 9,364.98 USD. So, in the real sense, the person who bought a bitcoin in Dec 2017 is in loss with almost 144.63% of his total investment in January 2020.
But depreciation is not an exact value that you can measure to decide whether you should invest in Crypto business or not.
Let’s suppose you are in 2013 and got a bitcoin trading at 155$. You stopped there and stored your currency in your bitcoin wallet till 2017. What you have earned will blow up your mind because in Dec 2017 the bitcoin hit the value of 21,000$/1Bitcoin.
Now let’s take a close look at recent updates in 2020. Luckily you invested your money on January 24, 2020, and got a bitcoin at price $8,405 and just after five days you get a profit of $1000.
If you are looking for huge profits, you should be well experienced, detail-oriented, pretty much aware of the trading strategies, current affairs, and crypto exchange. You can buy for a low price and sell for a high price – the basis of any financial system where making money is a goal. You can put coins in your digital wallet and stay off for a month or two. You can spread your bet over several currencies, or you can bet everything on one coin.
You will have to discover the technique that suits you best. It is, therefore, smart for almost every layman in this area to step in with a small amount. You do not have to put your entire mortgage on Bitcoin immediately; learn to speculate by betting only one ten on a coin. This way, you also get to know your trading style.
The one investor is chiselled out of stone and sleeps well if he has just lost $ 10,000. “Well, next week I’ll have double the amount.” The other is already completely panic when his / her currency has fallen by half a per cent. Yet it is usually best to have a strong heart when you invest in cryptocurrency. The character of this new form of money is explosive, perhaps even a bubble.
Within a few hours, coins can suddenly be worth double, half, 1000 per cent or -10,000 per cent; you do not know. It helps to set a goal for yourself. A simple technique is the 20-10 system. Okay, I come up with that name on the spot, but what matters is that you stop (with trading or roulette, depending on your situation) if, for example, you have made 20% profit, but also stop when you made a 10% loss. That way you can go wrong twice for every win.
There is a high amount of risk involved, but also a high profit if it succeeds. For beginners, on the other hand, it is wise to spread your bet. Invest over multiple coins (smaller amounts) and possibly over multiple wallets.