Cryptocurrencies, also called virtual currencies, are globally accepted for international payments via the Internet, but also investments. They are not issued by central banks or linked to accounts in commercial banks, and the biggest advantage they have over normal currencies is there is no fee for transactions, so international payments are simpler and cheaper because cryptocurrencies are not tied to any country or subject to regulation. In this way, anyone with an Internet connection can become part of that financial system without using a standard banking network. Such systems are almost inflation-resistant and less dependent on countries’ monetary policies.
However, if you have been thinking about investing in cryptocurrencies, it will require some research, s you can be on the safe side. In further text, we give you some tips on how to choose the right cryptocurrency for investment and we recommend going to Icoda for some good exchange options.
1. Analyze what you wish to invest in
Since investing in cryptocurrencies always comes with a risk, it’s useful to analyze what you wish to invest in and minimize the risk of loss. It’s great to listen to the advice of others especially if you’re new to cryptocurrencies or digital assets as they call them. However, it is recommended that you check and evaluate for yourself which tokens/cryptocurrencies you could invest in. What does each token solve from the current problems we have?
Who is the team behind token creation? Is the token centralized (more like a company) in nature or decentralized like Bitcoin (the technology/internet protocol on which the first application is the cryptocurrency of the same name)? These are just some of the questions you need to check before investing. Perform your in-depth analysis in detail!
2. Assess the risk level
First, in this case, the old advice about speculative investments is still very valid: invest only what you can live without, and be prepared for the investment to turn into zero. If you are not ready for that, forget about investing – it is too risky. People have been thinking whether to take a bank loan, which will be repaid quickly and only earnings will remain? No. Don’t even think about it! You never know when cryptocurrencies will suffer blows so great that all your investment will turn to nothing.
On the other hand, the financial potentials are very large. If you invest 100 $ today without which you can survive, they will potentially be worth a hundred times more in a year. You will make money, and at the same time, you will support the movement and the idea that deserves to be supported. Tempting, isn’t it? Almost irresistible, many would say.
However, be careful. Not everything is honey and milk.
3. Be informed about the ICO offerings
This is super important and can make a significant change in your pocket. Initial Coin Offering or ICO, or cryptocurrency public offering, is a process of issuing digital tokens at a lower price with the premise that they will be valuable when listed on a cryptocurrency exchange. This has enabled many startups to raise their capital and realize their business dreams. Investors reluctantly accepted this model due to high and instant liquidity and lightning speed of trading. Thus, trading cryptocurrencies has avoided the long wait that adorns the classic ways of investing in which an investor cannot trade his shares until the startup is listed.
Some public offers of cryptocurrencies to investors have filled their pockets with dignity. A perfect example of this is the Ether token, which was sold back in 2014 through a public offer of cryptocurrencies for 30 cents, and all those who were patient and kept their token, at the end of 2017 could very well earn because the value of ether exceeded $ 400. That year it was a real fever.
With the rise of new ICOs, there has been a significant increase in fraud, mainly due to the lack of legal provisions to regulate the work of ICOs, making it difficult for investors to distinguish potential innovative opportunities from dangerous kidnapping and management schemes.
Before investing, you should learn everything possible about the team, style, quality of management, and accounting data. It is not always possible to find out all this information about a particular ICO, but there are websites, to gather as much relevant information as possible about different projects.
4. Use safe platforms for investment
Let’s start with the basics. Cryptocurrency exchanges are specialized websites. To access the stock exchange, you must first register. Registration is done simply by the principle of email + password. After registration, depending on the individual exchange, you will be asked for additional information such as name, surname, address, copy of ID, or passport. This is most often needed when you want to withdraw (payout) money from the stock market.
Once you register on the stock market, use the option Deposit, to deposit some cash with which you can purchase coins. Some of the exchanges accept only cryptocurrencies but have the ability for conversion (fiat to crypto). You can also keep track of the currencies and how they act on the market. For more information about the apps that can help with this and put you in advantage when it comes to investments, such as Bitcoin secret.
Safe platforms for investments are those users are most satisfied with, so again, do your research to avoid scams.
Check here: https://bitcoinsecret.app/
5. Invest in coins who have a proven track record
A piece of good advice, in this case, is to choose those cryptocurrencies who have been on the market for some time now (at least two years). There’s a lot of new ones appearing on the market all the time, but investing in them might be risky. Or if you decide, don’t put too much money on them. Googling those who in the top 100 hundred is a good idea, also.
Cryptocurrencies are no doubt the future, so investing in them at the right time will put you in advantage, financially. Many discussions about the possible fall of the cryptocurrency market, but giving the state of the global economy now, it is highly unlikely.