Cryptocurrencies and Investing in Them
Cryptocurrencies have never been more in the frame in 2022, and few consumers even realize how big a part they are already playing in the surrounding society. Many people imagine that cryptocurrencies are just a digital version of traditional fiat currencies, but it’s not quite that simple. Yes, you can invest in Dogecoin or other cryptocurrencies, such as Bitcoin or Ethereum, that can be used like traditional payment currencies, for example, when making purchases in online shops. But there are also many cryptocurrencies on the market with a really high potential that are not payment currencies, but something else entirely
So what are cryptocurrencies, how do you actually buy and use cryptocurrencies, and what is the best cryptocurrency on the market? In this article, we will go through all these questions and provide you with a comprehensive and plain-language guide to the very interesting world of cryptocurrencies.
What to consider when choosing a cryptocurrency broker
When you are starting to invest in cryptocurrencies, it is important that you find the best trading service for you. When comparing trading services, there are a few things that take precedence over others, such as the range of investment opportunities and the user-friendliness of the site.
- Trading should be simple and quick, and should not cost a fortune to use the platform. So, therefore, the Gainy team provides you with its services and writes this article.
- Cryptocurrencies are already rapidly becoming normalized in basic trading, but they are still controversial currencies. Many investment sites do not offer cryptocurrencies at all or have restricted their purchase in certain countries.
Cryptocurrencies are completely new to many of us, so the user-friendliness of a trading platform can mean, for example, that you don’t have to put your fingers in your mouth at any point when investing in cryptos. This is because the site is easy to read and easy to navigate, and every click you make is explained in a way that you understand what you’re doing.
When you invest through the bank, you pay a service fee, a custody fee, a withdrawal fee, a rate change fee, and probably that CEO bonus on top.
- You can forget about these fees when you trade online.
- Many trading platforms, for example, only charge a spread for trading in cryptocurrencies. You may also have to pay for overnight trading and withdrawals, for example.
It is easy to withdraw cryptocurrencies to your account once you have chosen the right trading platform. Many platforms charge a fee for withdrawing cryptocurrencies, ranging from a few dollars to a percentage of the amount you withdraw. So check these before you decide which platform to trade on.
Trading platforms are not online casinos, but where you actually have a chance of winning. This is backed up by the fact that when you open an account with a good trading platform, it’s completely free. In addition, transferring your deposit to your investment account is free of charge and all financial transactions are secured.
The aforementioned security is a particularly important issue to consider when it comes to investing in cryptocurrencies. Cryptocurrencies attract hackers, and trading platforms need to be really serious about the security of your money for you to invest through them.
- For example, platforms that protect money transfers with SSL technology and registration with two-factor authentication, for example, are already going strong.
Cryptocurrencies are highly volatile
The final risk of investing in cryptocurrencies is that coins can be considered highly volatile. This means that prices can go up and down significantly in the short term. Especially in the short term, price fluctuations can reach double digits, which is not often the case in the financial world.
- Owning a cryptocurrency can be very risky if you don’t know how much it will be worth in a few hours. Of course, there are also benefits, as it is possible for the price to rise significantly in the short term.
- If you decide to invest in cryptocurrencies, it is important that you do not need to invest money in the short term.
- If you gamble all the savings that you had set aside for studying, you might regret it.
- You can also enter the market on a staggered basis: buying cryptocurrencies at different times, and investing both at the peak and the trough.
Does investing in cryptocurrencies make sense?
If all goes well, the above will have taught you more about the risks of investing in cryptocurrencies. However, these risks do not mean that investing in digital currencies is completely pointless. As we said earlier, all investments come with certain risks. However, you need to be aware of these risks, and now you know what is involved in investing.
Cryptocurrency brokers – where to buy cryptocurrencies?
Investing in cryptocurrencies has become increasingly common in recent years. Virtual currencies such as bitcoin, Ethereum, and Litecoin are of interest to many investors.
- If you are looking for information on cryptocurrencies or want to compare the services and trading costs of different crypto operators, you have come to the right place. Gainey’s service for investment highlights both domestic and foreign crypto players. The comparison will give you more information about trading costs, the range of cryptos available, and how to open an account. Compare trading platforms and choose the best crypto wallet for you.
Crypto investing basics
Before you start investing in cryptocurrencies, you should think about your own starting points for investing, such as the amount you can invest and the types of investments you are interested in. Among other things, the type of investment will depend on how long you plan to invest. In general, a longer-term investment will yield a higher return than a short-term one.
- The most well-known cryptocurrencies such as bitcoin and Ethereum are the most common investment targets for beginners.
- You don’t have to decide on one investment, but you can invest in several cryptocurrencies if you wish.
- Even if you have thought carefully about your plan before you start investing, it is also worth bearing in mind that plans can sometimes change, for example as your life situation changes.
- It is always important to remember that you may, for example, have to sell your investments at a time when their price is low and below the purchase price.