Today, we would like to write a tutorial specially dedicated to all of you who want to get involved in the cryptocurrency business.
Working and trading with cryptocurrencies can be highly lucrative, from mining to faucets, to exchanges and payment processors, earning high-value coins like bitcoin or low-value, but easy to obtain like Horizen (ZEN ).
There is no doubt that this form of digital commerce is here to stay, but is it as easy as some say? Is investing in X currency enough to make big profits? Are there any risks involved?
So don’t miss out on this opportunity to learn and avoid some of the most common mistakes newcomers make! Also, bitcoineras.com can help you with that and provide you with some valuable information.
How to invest in cryptocurrencies: The ultimate beginners’ guide
In this digital monetary universe savagery and instability are just around the corner, one day you can invest in a currency worth millions and the next you see how its value plummets and therefore lose the investment you made in it.
1. Is it worth buying Bitcoin?
Before investing, it is recommended that you know at least the basics of this technology. It is recommendable to watch some videos so that you understand some general concepts.
2. Name of the cryptocurrency
In marketing, seriousness, and, most importantly, other people’s trust, always are the first indication of the magnitude of vision that you have with the project.
Remember, in the cryptocurrency market, confidence is everything since it is what determines the success or failure of the project.
3. Don’t listen to the Bitcoin gurus
On YouTube and the internet, in general, you will always find so-called experts who turn out to be real quacks.
There are exceptions, but the vast majority will make you waste time and money.
Try not to depend on anyone but yourselves, when the market is on the rise every day, you will see many people taking videos that bitcoin is going to reach 50 thousand dollars and more clickbait titles, but when the market is down completely disappearing.
I assure you that the least they need is to listen to a lot of subjects saying that the price of Bitcoin can rise or fall. Work with logic and only look for educational information that will help you improve trading and manage your investments.
So that they are self-sufficient, capable of detecting the opportunities that arise, and do not lose money with the signals of a pirate.
4. Development Team
Checking the reputation of those responsible for the project is the third crucial point before investing in it. If we see that, for example, it is a currency that Facebook is launching, we can have full confidence that it is a fair and severe project, since its manager” Mr. Mark Zuckerberg” is more than known in the computer and web world.
- Opposite case
When it comes to perfect strangers of whom we know nothing, they do not show themselves publicly (neither their faces nor anything) they have no reference whatsoever to having experience in the area. They also do not take the development of the currency seriously.
It is almost 100% correct that this project will become a scam in the future, or even if it ends up being legal, it will still go straight to failure.
So you already know! For your security, look for projects that have a severe team behind them.
- You should buy when the market is panicking
Investing in a project when it is at its peak is very risky.
If everyone talks about it and there is news everywhere that only confirms its popularity – that cryptocurrency is probably at its maximum price.
5. You should buy when the market is in panic
Investing in a project when it is at its peak is very risky.
If everyone talks about it, that cryptocurrency is already at its maximum price.
6. Funding received
The initial supply of coins or ICO, as it is known, is the initial financing process that the development of the project has and is one of the crucial moments of this since here the maximum quantity to be distributed and, therefore, its initial price in the market is determined.
You should pay attention to the following things:
- Who finances the project?
- Is it reasonable for the amount requested to carry it out?
- How much was raised?
- What will be done with the money?
- What percentage of coins does the creator team keep?
Or simpler, every time you come across a project that raises a lot of money and is financed by famous personalities, such as Elon Musk, you know that it is severe and that you can participate with confidence.
7. Stability and scalability of the project
These are the details that you have to look at when you investigate or present the development scheme of the currency in question.
- Are you going to create a new payment solution?
- Do you have any specific problems or deficiencies?
Review the reason for its creation and check if you see it as feasible.
Some cryptocurrencies come out with a very high price, but only after the bubble explodes and falls into the abyss is when you start to notice that from the beginning, that project was useless. You let yourself be carried away by others.
We can verify that entering the world of cryptocurrencies is not easy. It is not a scenario where you sit at your computer, push an Exchange button, or a purse like Uphold to buy a couple of coins, and then you become rich. No, this is not how it works because it is a complicated business. Like any business, it must be analyzed, studied, and understood to minimize possible losses to your pocket.
⇒Nor should life be so complicated; the simpler, the better!
No need to be doing complex calculations or guessing luck.
The market functions in cycles. It has periods of ascent and cycles of descent, and you do not necessarily need an upward trend to generate income.
All you have to do is the following:
- Follow the suggestions we gave you in this article to prevent typical mistakes
- See in which direction the market is heading
- Enter an early phase to make profits on the entire route you take
- And finally, leave it behind you when you want to change direction.
The experience, training, and knowledge that you acquire will give you the ability to participate when a new trend begins and leave when the time comes.