The criptomonedas are now a day’s one of the most popular and well – known economic trends, because they meet the functions of traditional currencies, while offering high performance in terms of investing in cryptocurrency. The blockchain is part of an exciting world, which if you do not know enough can be complex and confusing.
That’s why we bring you some very useful tips to get you started in the crypto world successfully:
- Learn and investigate: each cryptocurrency has a project and a development team behind it. All digital currencies have a document called White Paper, which is a technical report that details the project. You can check the White Paper of the most popular cryptocurrencies such as Bitcoin or Ripple and learn how these projects are structured to be successful. In the same way, research the team behind the development, walk through your LinkedIn or previous developments will give you confidence to invest.
- Be cautious: Now that you know what currency to invest in, beware of scams that third parties can make in the name of a recognized currency. The blockchain is the technology that supports most virtual currencies as it provides security for transactions. However, there is a risk of fraud when acquiring cryptoactives through third parties.
- Have your coins in your Wallet: ** Hacks ** is the order of the day in the world of cryptocurrencies, so it is vital to take precautions. Making things difficult for hackers is not too complicated. Use the exchanges for what they are, exchange. That way once you’ve bought a coin, take the money out of the exchange and move it to a portfolio that only controls you. Remember that hacks are not made to the currency, but to the exchanges.
- Invest what you are willing to lose: as if it were a casino, do not invest what you do not want to lose. Although cryptocurrencies are reaching a higher status and several of them have positioned themselves, and (generally) do not decrease their value so abruptly, if you are initiating in the crypto world it is better that you do not invest millions of first time.
- Make a technical analysis of the currency: like any stock exchange, cryptocurrencies also have up and down behavior, valuation and devaluation and that is why it is necessary that before investing you make a small study of how the currency behaves in an exchange, this is known as Technical Analysis. The objective of this analysis is to find some pattern of behavior, with this it is probable to discover what will happen in the future with said currency , in this way you will know as an investor when to buy or sell.