Investors who venture into the world of cryptocurrencies, often experience many different emotions, such as doubt, skepticism, hope and fear. Perhaps you are unsure of what you are feeling. Well, one thing certain is that the information given here will ensure you feel safe about your investment as long as you abide by the provided recommendations.
There are two rules you should know at this point:
Don’t invest all your savings. The assurance is not 100%. Your rule of thumb should be that if your life will be a mess if you lose the money you invested than you should’nt invest it. Ignore all the false web preachers who try to make you believe it is safe to sell your home or quit your job to invest in cryptocurrency.
Rule 2: NEVER ever break Rule 1.
For starters you’ll want to decide which cryptocurrency is right for you. Which digital coin will work best for your money and be safe.
Which of the Cryptocurrencies should I buy?
There are numerous virtual currencies to actually choose from, Bitcoin (BTC), LiteCoin (LTC), Ethereum (ETH), Ripple, Dash and more. There are 1900 other coins to choose from. Some are best for specific purposes like Bitcoin which is good for replacing money. Bitcoin has been a source of attraction for many investors; the value has risen very quickly since 2009 when it was about $27 to about $15,000 recently, and this trend has provoked speculation by experts about its possible fall in the future soon. As a great measure of precaution, you should consider investing in more than one crypto, buy a few of them and ensure you do a market survey before proceeding to invest.
In which suitable sites should I buy Cryptocurrencies?
Then the next investigation a natural investor would make is where to buy these virtual currencies. The developers of Bitcoin intended for it to be transacted directly between people. In order to make users even more comfortable about their financial transactions, the Bitcoin exchanges were established to ensure adequate security with peer-to-peer handeling of private keys.
There are plenty of exchanges and traders that permit the buying of Bitcoin, as well as other virtual currencies. Through an exchange or a trader, you can purchase, sell, convert the virtual currency, and even withdraw it.
Many investors are quite moved by history and fame of some traders that they forget to consider the fresher crypto exchange services which sometimes have some good packages in store. You need to be unbiased and objective in making the right choice of what exchange company you want, because this factor can be a heavy determinant of your success or failure in the world of virtual currencies.
Good regulated traders recommended to invest in cryptocurrencies are listed below.
|Rank||Broker||Special Offer||Min. Deposit||Spreads From||User Score||Max leverage||Regulation||Available Currences||Start Trading|
|1||2% management fee and 100% spread rebate||$200||2 pips|
|400:1||ASIC, CySEC, CFTC, FCA, MiFID||Bitcoin, Ripple, Ethereum, Litecoin, Dash, Bitcoin cash||Visit Site|
|300:1||CySEC, Financial Conduct Authority (FCA), ASIC||Bitcoin, Ethereum, Bitcoin cash, Ripple||Visit Site|
|3||up to 50%, up to $20,000||$100||1 pips|
|400:1||MiFID, Central Bank of Ireland, ASIC, FSC, BVIFSC||Bitcoin, Bitcoin cash, Etereum, Litecoin||Visit Site|
When is the best time to buy Cryptocurrencies?
Bitcoins and other cryptocurrencies generally have the tendency to fluctuate wildly, which makes it a challenge to pin down a calendar date for making an investment. In fact, if one tries to apply conventional stock trading techniques here, they often find out the rules dont apply with cryptocurrencies. A Bitcoin could elevate so high in value that users and investors could estimate that it is unlikely to raise much above that, but it could surprisingly do so, and even by a ridiculously huge value. In fact such a situation is currently playing out with the Bitcoin valued over $15,000, and there is no estimation as to what it could raise to in the nearest future.
The process of trading virtual currencies is an art and isn’t governed by fixed rules; there is of course the possibility of a loss however safe we play. While it is easy to analyze and find explanations in retrospective, it is difficult to predict its behaviour in future. For this reason it is important to choose a good trading company to work with.
What tactics to use in trading cryptocurrencies?
Some investors bought Bitcoin about 8 years ago when it was launched and left it to grow and today the value is about 500000%. This strategy is called “buy and hold”. With this stategy you’ll need to take into account that there’s always a chance that prices may suddenly fall and your long-term investment won’t bring you any profit.
“Play the Game” is another common technique being used by many traders. These traders watch the market like night dogs, and buy currencies once they detect a slight fall in price and sell out when the price goes up again. To adopt this technique, one is required to be up-to-date with the trends and charts.
Another option is to invest with reliable trading brokers. Ususally these brokers have social transparency. This social trading involves the transparency of gathered information from many retail traders to help online investors relate to each other, share trading strategies and copy the behaviors of other successfull investors. A good recommended social trading company to start investing with is eToro. eToro is one of the leading social trading company to trade cryptocurrency – start trading at eToro