Investments in cryptocurrency

Features of investing in cryptocurrencies

The reputation of the digital currency is reaching new heights, and user confidence is also growing. It contributes to:

Expansion of the scope of the use of cryptocurrency, including at the state level.
The investment market is enriched by new players from China and India. Countries and private companies are beginning to look for funds that are not related to the political situation.
The largest online stores now accept bitcoin, which allows the currency to develop further at a rapid pace. The availability of digital currency is increasing due to the installation of street financial machines for making payments. The development of cryptocurrency is also associated with the use of new tools for storing money, the development of mining.

As experts predict, the cost of cryptocurrencies will grow. However, periods of "stagnation" are possible, when positions will not change, or a time of non-critical fall. It is worth considering the fact that long-term investments from a year bring great benefits to the investor and almost never burn out, while with a temporary decrease in quotes, short-term investments will turn out to be completely unprofitable.

So, in the long run, if you have a fairly large amount of money, investing in cryptocurrency is definitely a profitable enterprise, but even with a very modest amount of free money , you can invest wisely and earn additional funds. It is important to assess the risks and choose the right cryptocurrency. Learn more about cryptocurrencies at http://купитькриптовалюту.рф/.

What cryptocurrency to invest in?

Studying the current quotes of cryptocurrencies is the main task of the investor. You also need to take into account the reliability of "digital gold". At the moment, you can easily get into a difficult situation with fake currencies that are held by companies and are more like a financial pyramid. Verified cryptocurrencies:

Ethereum has shown stable development since its inception. Of the bonuses for users, this is the ability to independently generate blockchain applications for financial transactions. The advantage of cryptocurrency lies in the absence of intermediary companies, this reduces the risk of theft of the invested amount of money. Ethereum users also have the opportunity to create casinos, bookmakers. In the future, according to experts, cryptocurrency is expected to grow by 10 times.
Bitcoin is one of the most liquid cryptocurrencies. Investors during the investment of funds received more than 120% per annum. This is especially true for long-term investments from 5 years. Of course, by investing in 2012, you can get fantastic returns today. It is easy to invest in Bitcoin through a special wallet, which gives you access to one of the bitcoin trading platforms.
Monero has the main advantage over other cryptocurrencies, it is the anonymity of users and transactions. There are also negative sides: the currency is very popular on the black market, as transfers of funds cannot be tracked by law enforcement agencies and others.
Factom is based on a blockchain, which ensures the safety of data.
Counterparty is a financial platform that uses blockchain technology and has the XCP cryptocurrency. Transactions are carried out at special bitcoin addresses.
Siacoin is a completely anonymous platform with a user-friendly interface.
Lisk is a potential Ethereum competitor with growth prospects.
Ripple is an ideal cryptocurrency for venture operations, as the commission for making payments is reduced.
Steem is a system of payments for the performed service.
Zcash is a completely new platform with a high level of anonymity and good quotes.

Investment process

Knowing the benefits of investing in cryptocurrencies, and deciding which one to invest your free finances in, you need to think about the process of buying digital money

The traditional way to purchase cryptocurrencies is an electronic wallet, access to which only the copyright holder has access, fraudsters will not be able to hack it, even if the service on which it is located shares data. You can also conduct transactions with digital currencies on special exchanges, where you get several wallets at once for smooth transactions. Wallets on exchanges are hacked regularly, so storing large amounts of money is a big risk.

There are exchanges through which you can buy bitcoins from other users. Services of this type usually have a good exchange rate. The operation is easy to perform with a card from Sberbank or any other bank. The whole process looks like this:

The buyer chooses the seller, on whose account a certain amount of bitcoins is blocked.
The number of the card to which the transfer is made appears.
After the payment is made, the seller confirms the fact of receiving the money, the bitcoins are transferred to the buyer.

Difficulties for novice investors

Even a professional will not undertake to predict the growth or fall of quotes of new cryptocurrencies, their rate depends to a greater extent on advertising and various kinds of speculation. With more proven players such as Ethereum or Bitcoin, the situation is more understandable and predictable. But there are a number of other problems related to the technical equipment of the problems. An increase in the number of users will mean that transactions will be slower than usual. Payment transactions involving small amounts are unprofitable due to the fees charged for the transfer. This feature of the new currency can significantly weaken its impact on the economic situation in the world, as well as affect the price and quotes.

Advantages and disadvantages of investments

I would like to start with the advantages of investing in cryptocurrencies, since it is really profitable:

For a long time, Bitcoin has been showing stable growth against other currencies.
Users place particular trust in bitcoin. Other cryptocurrencies are not in such demand. After any falls, Bitcoin necessarily turned into growth. In addition, it has a high capitalization, which further strengthens the position of the currency.
The scaling of bitcoin has already been carried out, and the subsequent fork to a new currency will attract even more users.
The liquidity of bitcoin is higher than other cryptocurrencies. The possibilities of its use when buying and selling are also extensive.
It is necessary to invest in cryptocurrency right now, because at the moment bitcoin and other digital money are freed from state pressure. There is no additional fee for storing coins, as is the case with deposits or bank accounts. The advantages of most cryptocurrencies: anonymity, decentralization.

In addition to the positive factors of investing, it is worth mentioning the disadvantages:

A significant decrease in the speed of the transaction for more than a year has been alarming users. According to experts, the situation can only change for the worse, but network scaling may solve the problem.
Some states have prohibitive policies. Excessive control will also lead to aggravation of the situation, loss of trust among users.
The growth of the exchange rate may be replaced by a sharp "collapse", which further increases the risks of investing.

Investment risks

The risks are also due to the fact that even a group of speculators acting together can influence the position of bitcoin. It is worth remembering the time when the exchange rate fell almost for no reason, in the early days of 2017 it was $1,153, and after five days it sharply shifted to $850. Such situations are quite rare, but this possibility should not be discounted. With large investments, you can lose a significant amount.

How to assess risks?

“Altcoins”, currencies that compete with more established players in the financial market, are considered even more profitable in terms of investment. However, their situation may change dramatically in 2-3 years. it is difficult to predict the exact time of stagnation, so the investor must make an independent, balanced decision on the reliable investment of his own funds.