The appreciation of various digital currencies does not go unnoticed. Only in recent months the value of Biticoin went from 6,249 in June to 6,595 dollars in September 2018, but in July it had a value of 8,424 dollars in CoinMarketCap investing in cryptos.
Therefore, the interest of several people in investing in
cryptocurrencies, since you can earn money relatively easily; however, the
value is highly volatile, that is, quotes change constantly and unexpectedly
So how to take advantage of Bitcoin or other
cryptocurrencies with these changes? Apply these fundamental investment
Understand what you are going to invest
If you want to start investing in cryptocurrencies, you need
to understand how they work. What are the advantages of a digital currency
versus a traditional currency? Do you have any benefit? Is it useful? How does
technology work? Is your production sustainable? Who are its developers? Who
supports them? How do they move in the market?
This will help you determine if the value of a currency will
increase or remain, or if it will not remain in time. So, never invest in
something you do not understand.
Define the time you want to invest
If you want to invest in a cryptocurrency, whichever you
choose, you must define whether it will be for the short, medium or long term.
That is, will you make currency changes in the next month, in three months or
in a few years?
If your plan is to make purchases and sales regularly, then
you should study the market trends to take advantage of the ups and downs in
order to maximize profits.
You must be very aware of the indicators (in CoinMarketCap you
can check them), the technological news and the announcements of the
Consider that, while you can get great returns, this carries
a high risk. Although, as the billionaire, Warren Buffett said: “The risk
comes from not knowing what is being done”.
Many people have losses when, out of fear or ignorance, they
decide to sell and do not wait for their assets to rise in value. Hence the
importance of not investing in something that is not understood.
You may be interested: The alternatives to cryptocurrencies
that you should know this year.
Experts recommend a long-term strategy, since it is expected
that in the future, the value of these currencies will stabilize. In addition,
you will have to devote less time to analysis.
However, in both scenarios, you must be up to date on
specialized blogs like Ripio , where you will get all the necessary information
Investment in Initial Public Offering, ICO
Investment in what? If you are a first-time investor in
cryptocurrencies, you must find out what the ICO (Initial Coin Offering) is.
The initial public offering of a cryptocurrency is the first time it is sold to
a number of investors before it goes into circulation.
In this way, the developer team obtains a monetary support
that gives it a boost, credibility and responsibility to continue with its
One of the most popular and successful initial offers was
the one made by the Ethereum platform, which commercialized its
cryptocurrencies for a cost of just 1.3 dollars per Ether. Currently, the cost
of Ether exceeds $ 234, which allows us to see the advantages when
participating in the purchase of new coins.
However, these cases are really few. Many times, ICOs are
just a business for a few. So it is important to have as much information as
possible about the project.
You must especially analyze the possibilities of growth and
competition of the new currency. Any cryptocurrency even with better technology
will have to compete with Bitcoin, for example, a currency that, although it
has a high volatility, is already consolidated.
There are different factors to take into account, but this
is the main one.
Invest the right amount of money
The “invest only what you are willing to lose”
rule is infallible. Think, will you need the money that you are going to invest
to pay the rent, the tuition of your children or the indispensable services in
the next month? Can you face an illness or a job dismissal? If you cannot pay
essential expenses during the next months, then you are investing more money.
Nobody likes to lose money, but if you invest only the money
you have earmarked for high risk investments, you will not destabilize your
finances, if the worst happens.
You can start investing 90% of your savings in secure
financial instruments such as Cetes or online loans that offer fixed-term
returns; and only invest 10% in high risk instruments such as shares or
cryptocurrencies. This is known as diversification, which helps reduce the
losses that some investments can generate and take advantage of the
opportunities that arise.