Every year, more and more people become interested in cryptocurrencies and invest money in them. To do this with maximum benefit, you need to understand all the subtleties and pitfalls, as well as discipline your investments.
Although cryptocurrencies have been on the market for a long time, still investing in them can be called a relatively new phenomenon. Until now, many people do not understand how digital money works, and therefore are afraid to invest in them.
For example, you can invest in some relatively “fresh” but promising coin, and the next day its value will collapse by 40% because of another joke posted by Elon Musk on Twitter.
Also, do not forget that cryptocurrencies are currently in the “gray zone.” Formally, they are not prohibited, but the bank can refuse such a transfer, or conduct an additional check.
Indeed, the e-money market is potentially the most profitable, but the probability that you will lose everything is also quite high.
Where to start, what cryptocurrencies to buy, where to buy them – these and many other questions are on the minds of any junior crypto investor.
There are enough successful examples of investments. Take bitcoin: in 2010, 5,000 bitcoins would barely be enough to buy pizza with mushrooms, and today it’s rate is already $20,000 (and last year it reached an all-time high of $69,000).
Immediately it is worth noting that the main way to make money on cryptocurrency is speculation. You buy crypto on the decline of its value and sell on the rise – in theory, it’s simple. But problems begin to appear when trying to analyse these very ups and downs.
You need to choose a relatively popular and safe cryptocurrency, such as Bitcoin. It is the main cryptocurrency; the entire market is tied to it and has a limited emission (21,000,000).
If the “casino” mode (quick speculation) is not to your liking, then the basis of investment regulation is the accumulation of cryptocurrency. You can buy in equal monthly installments, allocating a certain amount from your income. When buying cryptocurrency, you can keep it on the exchange for months or years and sell it if necessary.
To make your money work for you, one popular option is mining. However, those familiar with cryptocurrency understand that mining is a very expensive business model. The purchase of a small mining farm for bitcoin mining will take about $ 50-60,000. Therefore, enterprising miners began to rent out their capacities, thus earning commissions. This is how cloud mining appeared.
To begin with, you need to decide …….