{"id":59853,"date":"2022-09-15T11:02:03","date_gmt":"2022-09-15T11:02:03","guid":{"rendered":"https:\/\/businessyield.com\/?p=59853"},"modified":"2022-11-03T14:29:19","modified_gmt":"2022-11-03T14:29:19","slug":"how-to-invest-in-cryptocurrencies-mini-guide-to-getting-started","status":"publish","type":"post","link":"https:\/\/businessyield.com\/cryptocurrency\/how-to-invest-in-cryptocurrencies-mini-guide-to-getting-started\/","title":{"rendered":"HOW TO INVEST IN CRYPTOCURRENCIES?: Mini Guide to Getting Started","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

After more than a decade of being present in the financial market, cryptocurrencies have become a great long-term investment for many. There are several ways to invest in cryptocurrency. It all depends on your goals and your knowledge of the market. From passive investment to daily trading through network fees or staking, we explain the existing ways to invest in cryptocurrency in this guide. If you are new to investing in digital assets, this guide is for you.<\/p>

What Is Cryptocurrency?<\/span><\/h2>

Cryptocurrencies are digital assets based on a technology called a blockchain. These crypto-assets allow peer-to-peer exchanges without intermediaries such as banks or insurance companies. Anyone interacting with the blockchain has control and responsibility for their money. At any time, the user can transfer the assets without the permission of a third party, regardless of the amount or the recipient.<\/p>

Investing in Cryptocurrency for the Long Term<\/span><\/h2>

Investing in crypto is, in theory, the easiest way to invest. It involves exchanging euros for a sum of cryptocurrency, hoping it will increase in value in the future. The goal will therefore be to realize a capital gain on resale. The long-term investment strategy is also called “hold” in the jargon of the crypto and stock market communities.<\/p>

Bitcoin (BTC) is still the most traded cryptocurrency. If Bitcoin can be used to purchase goods and services in several countries, payment by cryptocurrency is not yet very widespread, making it difficult to use in everyday life.<\/p>

Investing in Bitcoin is less and less considered a risky bet. Today the largest financial institutions buy cryptos, sometimes massively, in particular bitcoin. As a result, it is more than ever considered a speculative financial asset to invest in.<\/p>

A long-term investment is more accessible for beginners since it will suffice to buy cryptos and store them in a wallet. A wallet (crypto wallet) is like a virtual or physical safe that can hold and secure crypto assets.<\/p>

We thus take the bet that the value of Bitcoin, for example, increases. If so, it’s up to you to decide when you want to hit your profits (or limit your losses). Some investors are content with a gain of 25% of their capital to resell, while others prefer to wait until their investment has at least doubled (+ 100%).<\/p>

This long-term strategy requires few transactions and does not require being regularly active in the cryptocurrency market.<\/p>

Cryptocurrency Trading<\/span><\/h2>

Trading consists of betting on the movements of a price, upwards or downwards, via an online broker. It’s a short-term strategy in general. Many crypto traders practice day trading, executing one or more daily market orders. While investors are interested in the long-term performance of crypto, traders take advantage of the daily volatility in crypto prices to make immediate profits.<\/p>

Being a profitable trader, however, takes a lot of practice. Trading is like a lottery without real skills or understanding of the market. If the potential gains are increased tenfold thanks to the leverage effect, the risks of loss are just as much. Therefore, it is strongly recommended to train properly and prepare your strategy well before embarking on trading activity.<\/p>

Here are some strategic trading concepts to explore if this investment method interests you:<\/p>