Below you will find a complete and clear guide on how to invest in cryptocurrencies.
Is it really affordable? In fact, the very high growth rates of the various tokens have enriched many investors who believed in it at the right time, the so-called ” Crypto Boomers “.
|📈 Platforms||Exchange – Brokers|
|⭐️ Popular tokens||Bitcoin – Ethereum – Ripple|
|💰 Minimum investment||$ 50|
In this article we will explain how to invest, without mistakes and without risk, in the rich digital currency market .
Before betting on a cryptocurrency, it is advisable to know some technical aspects that will be useful during the investment phase.
Here are some questions asked by many industry beginners and newbies:
- What is a cryptocurrency? To simplify, we can define it as a digital currency capable of optimizing the payment system, with fast execution times and minimal commissions.
- How does a cryptocurrency work? This question is more complex. A cryptography is based on a technology called Blockchain, which is a kind of digital record used to validate transactions. This method replaces, at least intentionally, the Central Banks.
This is a true innovation in the world of finance that has aroused the enthusiasm of many investors (even celebrities like Elon Musk!).
Learn to invest in cryptocurrencies
To know how to start investing in cryptocurrencies, it is necessary to consider what are the best books and the best specific courses for this sector.
A good educational base is a fundamental aspect to be able to invest successfully , that is why we always suggest to our readers that they take the time to study and understand the basic concepts of investing, before starting to operate in the markets.
What are the best cryptocurrency books? Here are the most purchased on Amazon:
- Cryptocurrencies: An Essential Guide for Beginners (Herbert Jones)
- Cryptocurrency Investing Guide for Beginners (Joan Guerrero)
- Cryptocurrency Trading: Alejandro López-González
If we want to know how to invest in cryptocurrencies from scratch, it is advisable to participate in specific courses.
In this case, also thanks to the pandemic, the best option is given by online courses made available by the best brokers. Often these companies have a very rich and well-maintained training section available to clients.
The best courses to invest in Bitcoin and other cryptocurrencies are those of XTB and eToro .
In XTB we find a very large didactic area with numerous webinars that explain how to trade better and which cryptocurrencies to select. Teachers are often true experts in finance and digital currencies and users will certainly find it helpful to study about these excellent educational foundations.
eToro also offers an excellent option to learn how to invest in digital currencies, through its Trading Academy: webinars, quality material and tutorial videos that will help the investor to be profitable in the world of the stock market and specifically in cryptocurrencies.
Also in this case the didactic area is free , just register with the Broker to access without limits.
How to invest in cryptocurrencies?
As a first step, it is necessary to establish where we want to operate with the virtual currencies of our interest. There are two main options:
To this is added a fourth way, linked to the purchase and sale of tokens on portals such as LocalBitcoins , but it is a direct trading method and the transactions are not safe at all.
The best exchanges are famous for their clean and linear interface, as well as a large number of tradable tokens within the platform. The most famous are Binance and Coinbase , used by thousands of users every day.
Unfortunately, these operators have a major problem: they are not authorized . Of course, they are not criminals who scam their customers! The development of cryptocurrencies has simply been so impetuous that it has not shaped the legislation to take countermeasures.
Basically these exchanges do their job with good quality, but if they get involved in a problem (of any kind) for the client they are headaches. In the past, Mt. Gox , one of the first exchanges of the world, suddenly disappeared from the evening to the morning along with money from customers.
The advantages are numerous, of course, but before investing in cryptocurrencies with exchanges we must also consider the many ‘cons’.
Another solution to invest in criptomonedas (this time in security) the offer b rokers specialized in CFD , or Contract For Difference.
With this option, you do not buy the token directly but its underlying, which is a derivative contract that takes the name of CFD. This financial instrument exactly replicates the trend of the cryptocurrency, so if it gains value, we will have a profit.
Furthermore, by activating the so-called Short CFD , it will be possible to win even if the token loses stake: yes, it will be possible to win even if the cryptocurrency falls in price!
To all this is added a factor of great importance: the regulation of these CFD brokers. Safe and reliable, they comply with all EU regulations and protect investors as much as possible.
Attention: for months, eToro offers the possibility to buy the real Token. Basically it will be enough to choose the cryptocurrency to buy, deactivate the leverage and proceed with the purchase.
As with the Exchange, eToro allows the real purchase of our favorite digital currencies, with total security and without fixed commissions.
Investing in cryptocurrency mining is profitable? In the past, several users made good profits from mining.
Despite the high costs of electricity, since computers must be connected 24 hours a day, and very expensive hardware, until a few years ago the mining business was easier to do.
To date, in addition to excessive costs, increasingly sophisticated and expensive calculation tools are needed: this makes mining unprofitable, at least in the most famous digital currencies.
Where to keep cryptocurrencies?
Since these are digital currencies, it will be necessary to have a (virtual) wallet to store our tokens. In technical jargon we will talk about Wallet . Many exchanges offer this integrated service, you essentially buy the crypto of interest and move the token in the wallet.
It will be of fundamental importance to remember the password or in any case the code to access our electronic wallet: many investors have lost their credentials and can no longer obtain their cryptocurrencies!
Once in the wallet, the tokens will be safe, however the process is quite tortuous:
- To open an account
- Buy a cryptocurrency
- Keep it in your wallet
- Convert it to Fiat currency
- Receive the monetary value in our account
Without forgetting that for each step there are more or less high commissions , depending on the chosen Exchange.
Also in this case, regulated brokers offer a more convenient solution, since the CFD will be present in our trading account and without the need to convert it to other currencies.
Here’s a practical example: let’s say you buy the Bitcoin CFD worth € 100. At the end of the day the value of the BTC will have increased, suppose a balance of € 150. Just click “withdraw funds” and move the money directly to our credit card.
Many brokers also allow you to use Paypal , debit cards or bank transfers: the maximum comfort to invest in cryptocurrencies.
Where to invest in cryptocurrencies?
The following table contains the best cryptocurrency platforms . These are safe, trustworthy and honest brokers – they are all regulated, thus offering maximum capital protection for the client.
First of all, we have selected platforms that are exclusively free and that do not apply commissions or costs of any kind. Some of these platforms also offer very useful support tools, especially for beginners.
eToro is an excellent option for those who want to invest in cryptocurrencies.
It is a very easy to use, safe and free platform. One of the main strengths of eToro is the ability to copy, completely automatically, what other investors are doing.
In practice, it is possible to search for investors who have earned more in the past and then automatically copy them with a simple click.
It will also be possible to invest in Bitcoin and other cryptocurrencies with CFDs, choosing the tokens that we like the most and investing in them!
The option that LiquidityX represents is extremely used to invest in virtual currencies in the best way.
Professional and efficient, exchanging the main tokens on Metatrader will be a truly excellent experience.
In addition, LiquidityX does not leave its traders alone: account managers have had a telephone helpdesk for years. They are true experts in finance and cryptocurrencies who will be at our disposal for any advice or suggestion.
As if that were not enough, LiquidityX also offers a Trading Signals service , which are precise indications on how to trade. These are real-time notifications with useful information for investing, here is an example:
- Buy Bitcoin $ 9,400 with Target $ 9,500
Are you curious to try this great service? Here is the link to request free trading signals:
Markets is considered today as one of the best brokers to invest in cryptocurrencies.
In fact, it is a safe, reliable and honest platform, very easy to use even for those who have never had anything to do with financial investments or cryptocurrencies.
All members can request the assistance of a true cryptocurrency specialist , capable of providing valuable advice. Anyone who wants can download a free course that explains, in detail, how to invest in the financial markets to obtain the best results.
The beauty of this course is that it is completely free : similar courses can have very high costs (even 7,000 euros). Also, the course is written in really simple language that everyone can understand and is totally practice-oriented, so you don’t waste time with theory.
Markets is a leading investment platform in Europe with hundreds of thousands of active investors . It is completely free and allows you to invest in cryptocurrencies without paying fixed commissions:
The best cryptocurrencies to invest
Investing in the world of cryptocurrencies has undoubtedly become the new obligation for investors around the world, as they can now allow maximum returns compared to other assets.
Trying to predict what the next great cryptocurrency will be is undoubtedly impossible, but what we can do is identify which are currently the best emerging cryptocurrencies .
What cryptocurrency to invest in today? The crypto world is not only made up of Bitcoin, on the contrary: there are many opportunities to invest in new cryptocurrencies, such as Solana or Cardano.
In recent years, some cryptocurrencies that have been characterized by excellent performance and a good level of capitalization have come to the fore. The term a ltcoin defines cryptocurrencies that are not Bitcoin.
The best way to identify the best and, therefore, the most attractive to start investing today, is to see the ranking by capitalization .
Bitcoin is possibly the best investment market due to its great reputation. It also enjoys most of the overall cryptomundo capitalization. It was the first virtual currency to be invented at the hands of Satoshi Nakamoto .
Bitcoin enjoys a very large and developed Blockchain, but it is already beginning to suffer the first ailments in terms of scalability and has suffered a Hard Fork that has generated Bitcoin Cash.
Ethereum is the second most popular absolute cryptocurrency. It has become extremely popular in recent years, confirming itself as one of the best alternatives in the world after Bitcoin.
Thanks to the main technology of this cryptocurrency, smart contracts , Ethereum has managed to evolve very quickly over time.
With smart contracts it is possible to develop fully decentralized applications.
Ripple is the third currency in the world by market capitalization, which is in a very positive moment. One of the most important features of Ripple is the ability to send and receive money without any commission.
The reasons for the great success of XRP are the professionalism and extremely high reliability of this cryptocurrency.
Tezos is a new cryptocurrency that has recently entered the Top 10 of the most capitalized. Before the crisis triggered by the Coronavirus, the XTZ Token was characterized by double-digit increases and a Blockchain optimized to meet the needs of developers and users.
When the waters of the financial markets have calmed down, we are ready to bet on Tezos, a reliable crypto with large development margins.
This cryptocurrency born in 2017 soon climbed positions in the cryptomundo. To date, EOS is one of the most innovative and modern, thanks to the fact that it has focused everything on the quality of the Blockchain:
- Easy to use
Its qualities are so well known that even Ethereum, the world’s number one crypto for Blockchain quality, was shocked by EOS developments.
L itecoin is well structured but it is also too volatile. In 2019, with all cryptocurrencies in the red, LTC continued to perform excellently. Subsequently, it collapsed without warning.
Generally speaking, it is a crypto that has gone from a few dollars to a price of almost $ 300 – betting on Litecoin could prove to be a winning option.
Is it safe to invest in cryptocurrencies?
Many users are scared by this new and still unknown world, especially because it is based on complex mechanisms such as Blockchain, proof-of-stake or others. Consequently, investors often wonder if it is safe to invest in cryptocurrencies.
A distinction must be made between financial risk and risk associated with potential scams.
In the first case, let’s clarify immediately: there are no 100% safe investments. Therefore, cryptocurrencies also contain market risks , such as a price drop or an incorrect composition of our portfolio.
The case related to scams is quite different. Unfortunately, in recent years, thanks to the success of Bitcoin, numerous programs have proliferated that invite you to invest money in exchange for constant income.
Unfortunately, they are all falsehoods! Often after depositing money into this software, you soon realize that you have been scammed.
How to avoid scams? Easy, just check the broker’s regular license. If on the home page there are references to supervisory bodies such as the FCA or CySec, then we can be sure.
Is it worth investing in cryptocurrencies?
Is 2021 the right year to invest in cryptocurrencies or is it too late?
Many confirm that BTC, as well as other Altcoins, will reach very high levels in no time. There are those who even think that Bitcoin will hit the $ 100,000 level in no time.
Below is a summary of the main steps to follow to invest in cryptocurrencies:
- Choose regulated platforms
- Distribute the investment in at least 3 or 4 cryptocurrencies to diversify the risk.
- Adopt good money management
Universal indications for a profitable investment!
Investing in cryptocurrencies Reviews
By browsing the different cryptocurrency forums, it is possible to know what the opinions of users are regarding the cryptomondo .
To date, opinions remain conflicting, although there is a clear predominance of those who feel fully satisfied. How can an asset like Bitcoin that has had a return of over 10,000% since its founding get negative reviews? Obviously, it is necessary to select the Timing of entry to the market and the appropriate Broker, but in general the BTC has given numerous satisfactions to its investors.
Unfortunately, those who report negative reviews are those who believed in the scams and were tempted by easy profits. They have invested so much money that they will never see again, but Bitcoin is certainly not to blame! These investors have been naive in believing in unrealizable promises.
The best forum where cryptocurrencies are discussed is the eToro Community : certified and verified users, educated tones, and thousands of investors to talk to about Bitcoin and other assets.
The registration is free and many beginners use the Community to interact with the best investors of the platform and steal some secrets to be profitable.
This is where to register in minutes:
Advantages and disadvantages of investing in cryptocurrencies
As with any investment asset, there are Pros and Cons to consider when investing.
At Inversiones24 we have tried to list all the positives and main risks associated with investing in cryptocurrencies, let’s find out together.
- Global currencies: although they are not regulated as a new asset, cryptocurrencies are used all over the world and can be traded on all 5 continents, with a few exceptions. This makes them popular and profitable when it comes to investing.
- Security: the blockchain system allows transactions with the highest security standards. The cryptographic mechanism also protects users from scams or theft. Of course, some precautions must be taken, but if followed well, cryptocurrencies will be extremely safe.
- Deflationary value: some tokens (like Bitcoin) have a maximum number of tokens. This means that the more the number of new Tokens that are put into circulation is reduced, the more the value of the existing ones increases.
- Irreversible and immediate transactions: everything that happens in the Blockchain is clear, nobody will ever be able to change the transaction or the payment received. This makes cryptocurrencies a safe and transparent environment.
- Loss of money: pay attention to the access codes of your Wallets, if we lose the credentials we cannot recover them and this means losing our Tokens forever. Falling for scams is also a naive way to lose money.
- High Volatility: as always with new Assets, volatility is really high. This means that we must invest very carefully, as prices could rise quickly but also lose share in a very short time, cutting our investment in half.
- Lack of Specific Regulation: Even today, the main supervisory authorities have not officially spoken about the regulation of cryptocurrencies. This can cause regulatory and tax confusion, making investing in cryptocurrencies riskier than traditional investment assets.
Throughout this guide, we have offered helpful tips on how and where to invest in cryptocurrencies .
If we want to invest in cryptocurrencies effectively and professionally, our platform must be the same. Only by choosing regulated brokers will we be safe from scams and we will be able to better plan our investments in the best tokens.