Cryptocurrencies are essentially a form of money in digital existence. This means that the cryptocurrency does not have a physical form.
It exists on a network called blockchain (as an accounting record).In this network-online database, called blockchain, the address where the digital cryptocurrency exists in wallet form is also displayed.
The cryptocurrency offer is constant and in order to obtain a wallet on a cryptocurrency you will have to be transferred from another wallet.
Cryptocurrencies belong to the first decentralized digital money exchange network. Money transfers are made between users.
There are no intermediaries such as commercial banks and there is no central issuing authority e.g. a Central Bank that can arbitrarily create new cryptocurrencies.
For novice investors, who are making their first dive into the world of cryptocurrencies, this investment may seem a bit confusing.
There is a lack of good information because the cryptocurrency is electronic, it has no physical substance. It is therefore also difficult to assess.
However, with a little guidance, one can begin to learn the basics in: how to invest in cryptocurrencies. There are many cryptocurrency trading books out there. Bitnewsbot compiled this very good list of cryptocurrency books for new traders.
Soon he will be experienced in this type of investment as well.
Like any investment, no one should ever invest in something without first knowing what it is.
The fear of a lack of knowledge will sometimes push you to make instantaneous decisions in the world of this investment as well.
Result: It can lead you to big losses.
Understanding these investments is an important element. You need to take the time and study blockchain technology. So you have a good understanding of each platform and how it works.
But very quickly, we give you 3 steps in a simple and understandable way.
How to invest in cryptocurrencies in 3 steps:
Step 1:
Start the research. And when the time comes, make the investment!
Step 2:
To get started, open an account at a cryptocurrency investment center: A cryptocurrency exchange, such as Kraken or Coinbase.
These exchanges will allow you to find someone, to exchange the physical currency you have, for the cryptocurrency (that the counterparty has).
Step 3:
Deposit the money and when you are ready, make the investment.
There is no need to start by buying a large amount of cryptocurrency.
We recommend you start with small trades. And don’t think you’ll become rich.
Sure, everyone at first can look lucky. It may or may not… But luck is not an investment strategy and you should never count on it.
All investors will notice that cryptocurrencies have extreme volatility and there is a lot out there to invest.
To your question:
Which of the many cryptocurrencies should I choose for investment?
We answer you:
Better to start with the big two, which are Bitcoin or Ethereum.
They are the most reliable and safest among all the different types of cryptocurrencies.
The others are simply following the path of the above 2 leaders in the cryptocurrency market.