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 strategies.

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?

Short-term investment

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 developers.

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.

Long-term investment

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 about cryptocurrencies.

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 technological proposal.

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.

The best tips to invest in cryptocurrencies

Cryptocurrencies such as Bitcoin as an example are no longer regarded as a virtual gimmick, as this relatively new currency has become increasingly important to global central banks. Banks and governments as brokers fall away from cryptocurrencies investing in cryptos, bitcoin stores money on blockchains, and transactions are much faster and cheaper. In principle, cryptocurrencies have no real value at all, as they depend on the trust of their community or users who determine the request and demand. How digital currencies are interesting for investment should be evident in Bitcoin, which peaked at $ 20,000 in December 2017 and was available for $ 15 a few years ago.


Cryptocurrency trading is a relatively new market that is growing in importance and can bring great benefits. However, since no one can predict how the many crypto currencies will develop, long-term investments can be risky in particular as they are exposed to significant price fluctuations. To trade with cryptocurrencies, all you need to do is open a trading account and then choose the CFDs on Bitcoin, Ethereum or Litecoin, which are among the most popular online currencies. There are now 700 different currencies, but not all of them are tradable everywhere.

If you want to invest in cryptocurrencies, you should first pay attention to the tips below:

  1. Before investing as a beginner in digital currencies, you should be aware that in the worst case, you can lose the money invested again. It’s a good idea to start with smaller amount first to get a feel for the exciting trade in cryptocurrencies. You have to be able to handle the potential loss.
  2. Often the fear is to blame for getting in at too high prices, because you might miss out on winnings, or panic when you want to quickly get rid of the coins. Information about the chosen cryptocurrency is therefore essential, because as a rule, falling prices rise again or vice versa, it also comes down to price oscillations, such as the current Bitcoin .
  3. Each cryptocurrency is essentially a start-up, many of which are doomed to fail. It is advisable to stick to already established coins that have been able to hold their own over a longer period of time, which is not only the case with Bitcoin, but also with Litecoin, Ethereum, Ripple, Monero and Dash.
  4. Although relatively new crypto assets can surprisingly gain in value very quickly, you should still keep an eye on the old coins. For example, many professional retailers are just waiting for a good time to get back to Bitcoin with larger sums of money. Experts assume that the prices will increase again sharply after the significant losses.
  5. Anyone who wants to invest in cryptocurrencies needs a good sense for future price developments and must also be able to correctly assess foreign exchange. Although the coins are not regulated by central banks, they are not completely independent of currencies like the USD as an example.
  6. Trading with cryptocurrencies involves strong price fluctuations, for which good nerves are important. If it comes to a hype, then an exciting roller coaster ride can be expected, because even the Bitcoin was declared over 130 over the years because of the extreme price fluctuations for failed.
  7. Interesting tips about new internet funds can also be provided by the developer teams behind the respective projects. When they show up publicly in social networks and act positively in the community, this is usually a good sign of engagement. If you keep an eye on the developers, you will quickly find out if they are experts or bloody novices.

Otherwise, of course, you can also orientate yourself on the roadmap, the total amount of coins, as well as the number of members in the community and how they deal with each other. Often it is the small things that can confirm a certain impression of a new company. The investment in a cryptocurrency does not necessarily have to be very high in order to pay off in the long term. For example, if you invest only 10 or 20 euros a month in a digital currency, you can certainly earn more money than if those small amounts end up in the meager piggy bank.