Digital crypto currency

For some, investment in the crypto currency is something resembling a fairytale, for others - a profitable source of income. While some are thinking about where to invest their money, others are already on it by actively investing and breaking the jackpot. So the question is: how to make money on crypto currency? Before you spend money on digital coins, find out how risky crypto finance investments are, what results can be expected from it, what crypto currency is more profitable to invest?

When it comes to the best investment tools, crypto currencies are always mentioned in some way. Investing in crypto currency - advantages:

• Modern technologies. The creation of digital money is based on unique technologies used all over the world. You can use crypto currency almost in any country (with a few exceptions). Therefore, you can earn in a convenient place and at any time.

• Growth in value. Popular crypto currencies are growing in price. Occasionally, prices can drop sharply but after a while it increases by several times. If you have the right approach to crypto finance investments, you can easily get income by only working with the rate difference.
• Expansion. There are regularly new crypto currencies that can become an object of investment. Forecasting the growth of value makes it possible to improve your financial position with minimal effort.

Possible risks

• Some users consider the crypto currency to be another Ponzi scheme or a so-called bubble. Despite constant talks about this, crypto currency continues to exist and develop actively for many years. Such money is not backed up but as long as the government does not introduce regulatory laws, crypto currency investment will stay a profitable business.
• There is a risk of losing investments due to a sharp decline in the crypto currency price. Here, a lot depends on an investor's foresight and ability to stay calm.
• In many countries, laws governing the crypto currency circulation have not been adopted so you cannot pay income taxes. In addition, there are countries where digital money is simply banned.

Where to invest?

The success of crypto currency investment depends on the correct choice of digital money. It is important to use a profitable crypto currency, which will not lead you to losses. Consider the following factors when choosing:

• Popularity. Find out how common a crypto currency is among users. Great interest, availability on exchanges, rising costs - all this indicates the popularity of digital money.
• Mobility. Choose a currency that can be easily moved.

• Security. A good crypto currency should be protected from scammers

How to start investing?

• Choose which crypto currency you will work with. The payback period and the amount of income depend on this.
• Allocate funds for investment. You need the amount for initial investment and further support of investment activities.
• Create a wallet for crypto currency. You will be required to do it to conduct transactions.
• Register on the exchange. You can work on one or more websites. Read the terms and conditions to select an acceptable option (for example, Coinbase, Bitfinex, HitBTC).
• Buy a crypto currency. Wait for the right time to purchase digital money at the minimum rate, i.e. buy the currency on the decline.
• Move the purchased currency into an offline wallet. Thus, you will ensure security against theft. Do not leave money on the stock account unless you plan to sell or change it in the coming days.

Crypto currency trading

For those wishing to join the growing crypto economy and participate in the market trading, there are over fifty exchanges already working on the Internet. Which of them are the most profitable, should be decided on the basis of the virtual money list presented and the possibility of exchanging it for national currencies such as the US dollar or the euro. The largest stock exchanges at the moment are BTC China, Bitstamp, MtGox, BTC. All of them provide an opportunity to trade in the market using different pairs (including the main crypto currencies, litecoin and other forks and with fiat money).

Recently, trading opportunities for crypto currency have appeared on the eToro site, which is the largest social trading platform. CFD-contracts for Bitcoin had access to eToro before but this time they added the Ethereum currency, the demand for which is now growing. CFD-contracts can also be considered an investment tool; basically, you own Bitcoin or Ethereum without creating a real crypto wallet. This is a good opportunity to get acquainted with the eToro platform, which allows you to earn not only on crypto currencies but also on stocks, currencies and indices.

Let's look in detail at the pros and cons of investing using Bitcoin as an example:

Pros

• Stable and very rapid growth of the crypto currency.
• High level of community trust, the largest capitalization and the number of users.
• Liquidity, various options for buying/selling with the crypto currency and even buying goods for Bitcoin.
• Savings tool - instability and inflation of the fiat currencies provoke demand for bitcoin further.
• Lack of regulation by the state, decentralization and pseudo-anonymity.

Cons

• Problems regarding the scale of the Internet, high commissions, online transactions glitches.
• Interest from state regulators to crypto currency is also growing and in some countries it is already banned at the legislative level.
• Too dramatic rate growth causes concern that it can also sharply collapse because Bitcoin is not backed up by anything.

TAG: business# exchange#

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Damian

Author

I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....