How to start investing in cryptocurrencies and what strategy to choose? There is no single correct tactic that will turn a trader into a millionaire. You need to study how the market works, understand the theoretical foundations that can help in trading. Every trade comes with the risk of losing capital. Learn more about cryptocurrencies at http://купитькриптовалюту.рф/.
How to start investing in cryptocurrencies?
The most important issue when buying and selling cryptocurrencies are the factors that affect the rise and fall of the price. The best traders can anticipate upcoming changes and react accordingly.
Many do not understand how many factors affect the price of cryptocurrencies. These include the actions of the largest companies in the market, their successes, failures, comments from influential people, world events. Public opinions of experts, statements of famous figures about investing or virtual money are also important. Every "little thing" can be significant, and the greatest art is to follow them, to be aware of their impact on quotes and be able to respond to changes.
Each step is subject to investment risk, and the trader must be aware that he can lose all capital. However, its task is to minimize the risk. Various portals and services come to the rescue: they offer a full range of services and provide the information necessary for buying and selling virtual money. It is important to use reliable platforms for buying.
Look for current and weekly cryptocurrency quotes, industry news, detailed explanations of key terms used in the market. All this will help you make the right decisions.
After studying the theory, you will only have to create an account on one of the cryptocurrency exchanges, confirm your identity and buy your first digital currency.
Broker or exchange?
There are two methods of investing in cryptocurrencies:
- through brokers;
- on the exchange.
Detailed ratings of recommended brokers can be found on the Internet. The pros and cons of each of them are described in numerous reviews. Specialized sites also contain information about who their services can be most useful for. Having made a decision, just click on the link and you will be redirected directly to the broker's website.
The use of a broker is based on speculation on the price of virtual coins. The trader issues futures, options and CFDs (contracts for difference). However, during the game, you do not buy cryptocurrency, that is, you do not become the owner.
Transactions in this case are not carried out between the seller and the buyer. The investor trades with a broker who is an intermediary between him and the market. It is also worth knowing that the prices listed there are not based on market value - a commission is added to them. On the other hand, brokers allow you to play at a higher rate without investing your own money. They can use the principle of financial leverage, which can provide a trader with higher exposure with low capital. However, this comes with a lot of risk.
In the case of an exchange, traders trade among themselves, and the prices of issued cryptocurrencies do not include any commissions. Instead, the intermediary charges additional fees for other transactions of its users.
The trader trades real cryptocurrencies, actually becomes their owner. In this regard, there is a problem of storage, to which exchanges respond with online wallets. However, despite numerous security measures, many consider them a risky decision and a tasty morsel for hackers. There is no leverage option, so you can only use your own capital.
Exchanges usually allow you to trade a large number of cryptocurrencies. In the case of a broker, you can usually speculate on the prices of the most expensive popular virtual coins.
How to start earning on cryptocurrencies?
There is no single golden tactic that guarantees success. Any investment can lead to losses and traders should be aware of this. However, it is worth understanding the theoretical foundations that explain the strategies for buying and selling stocks in such a way as to ultimately make a profit.
There are many websites where you can find an explanation of the available strategies. It is worth paying attention to those that explain everything in a form accessible to beginners.
Investments in cryptocurrencies are divided into short-term and long-term. The first solution involves buying virtual money and keeping a close eye on daily market movements and rates. It is based on the well-known principle "buy low, sell high". When the price of a purchased coin has increased relative to the rate at which it was purchased, it is sold at a higher price. The difference is the trader's potential profit.
Those with more patience can look to long-term investments. They can last more than six months, and often several years. In this case, the trader does not care about short-term stock price spikes that occur before the end of his investment. He believes in its ultimate growth in the long term.
