Crypto-currencies are taking over a good part of the market, and are quickly becoming something really important. The stories about people becoming rich with a cryptocurrency that went crazy are everywhere now and are really appealing.
But of course, there are also stories about the people that lost millions with crypto, which is not as simple as some people put it. There are many courses that you can check out about trading and winning money with crypto.
However, there are other kinds of investments that may suit you better and are definitely safer. In this post you know how investing in crypto is like and everything you have to know about it.
This way you can know if this investment is for you or if you should look for something else.
What you should know before buying cryptocurrency?
Obviously, you need to be acquainted with the terminology, for example, you should know what a crypto-currency is. Do you really know what it is? In case you don’t, this is what you should know:
A Crypto-currency is a digital currency that works with cryptography, which makes it nearly impossible to track. Crypto is characterized by being decentralized currencies, which make them more secure and 100% of your property.
Decentralized means that all the money is not under a central figure’s power. This is not the case with the U.S dollar for example.
Most crypto-currencies work based on blockchain technology. Basically, Blockchain is a massive register of the transactions made with one currency, this is public and saved in a network of computers.
The blockchain system makes it really hard to hack, cheat, forfeit any funds, because the person could be spotted right away.
These are the basics of how crypto-currencies work, this information is so simplified, so you can start to comprehend.
Is investing in crypto a good investment?
You can never be sure if investing in crypto will be a good or bad investment, that will depend on many factors. The same practical probability that the currency rises its price is the same probability that it decreases.
There are calculations, and one can speculate why it may rise or not, but you can’t ever know for sure if it will happen or not. That is why my personal advice would be the following:
If you want to secure investment and want a mid-term profit, you shouldn’t by any means invest in crypto. However, if you have some good 200$ that you wouldn’t mind losing, turning them into promising crypto could be a good idea!
How do I know what cryptocurrency to invest in?
And this is where things get messy, there are a lot of reasons why a crypto-currency may change its price. You will have to study all of them and consult experts if you want somewhat of security that it will profit.
Some of these factors are.
- Community around them
- The behavior of the price in the market
- The overall reputation of the crypto
- Vision and purpose of the crypto
- The team that developed the crypto
And the list can go on and on, are you eager about investing in crypto too?
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