Investing in cryptocurrency: everything you need to know
Crypto
9.11.2024 1:01 AM
Hapi
A decade ago, it was strange to hear about cryptocurrencies. Nowadays, hearing about Bitcoin is no longer new, and now, with the pandemic, it has taken a new impetus for its capitalization to grow, and with it its value, and most of all, its price already exceeds the GDP value of countries such as Switzerland - according to data from the International Monetary Fund (IMF).
Now investing in cryptocurrencies is a recurring theme and we cannot deny that they are an essential and profitable asset for any investment portfolio. But: Is investing in crypto for everyone?
In today's article, we share what is the best way to buy cryptocurrency, through an account Exchange. Also, what are the best cryptos? , what is the famous blockchain? and above all, an answer to: is it worth investing in cryptocurrencies?
It should be remembered that this article is informative, you should always research everything you can before investing your savings in any investment asset.
Let's start with the definition, cryptocurrencies are also known as cryptocurrencies or crypto assets and are digital exchange currencies generated using cryptographic methods. This generation is programmed based on an algorithm that also secures your transactions, controls the creation of your new units and verifies the transfer of your assets.
This cryptographic encryption guarantees ownership, and thanks to this property, it prevents unauthorized copies from being made, because in the end cryptocurrencies do not exist in physical form: they are digits that can be stored in a digital wallet.
→They are not controlled or regulated by any institution;
→They use a decentralized database: blockchain, which uses a shared registry, to control their transactions;
→They do not have coverage that protects the client, such as those known: deposit guarantee funds or investor guarantee funds, unlike investing in the stock market.
To understand how a crypto investment works, we must know three elements:
1-Its base is a decentralized computer network: the blockchain or blockchain, which are nodes spread all over the world, each node keeps copies of all the transactions that are being carried out;
2-Miners are people who are part of the blockchain, they are encouraged to join this network because every time new Bitcoins are generated they are distributed among this network;
3-Los Exchanges, are like exchange houses, platforms that allow you to convert your money from dollars to Bitcoins, digitize them so that you can then use a wallet.
But who are the miners? They are people who are dedicated to “cryptocurrency mining”, which is a process of adding new transaction records or expanding the blockchain chain. For joining that network, miners receive rewards. That is why this profession is attractive.
When a crypto transaction, a purchase, is made, the data of the purchase is recorded in a block. Automatically, they are replicated throughout the blockchain network. It is that decentralization of information that prevents it from being falsified, modified or manipulated.
This digitalization would solve the financial problem of counterfeiting. What's more, many specialists highlight that:
→They are a great investment opportunity, for those investors with a risky profile;
→It is becoming an accepted means of payment;
→It's available to everyone in the world;
→It is a profitable instrument, although, they are volatile assets with a certain risk factor.
→Blockchain technology is proving to be reliable.
One of the most important and practical parts, to make a secure crypto investment, is that you must invest capital that you are not going to use in the long term, for this it is important to have a basic investment strategy. And it doesn't hurt to remind you that you know some basic crypto concepts such as: blockchain, account Exchange, Bitcoin, circulating supply, total supply and different types of wallets.
With that as a theoretical basis and a first step, let's look at the following steps to start investing in crypto assets:
It's about registering on a platform where you can transform your money into a cryptocurrency. We are talking about an online exchange that digitizes your money. For this transformation, they charge a small commission, and they can exist in both centralized and decentralized types.
Alberto Fernández, professor of the Blockchain and Digital Innovation Program at IEB (Institute for Stock Exchange Studies), recommends a Exchange approved, or that has a representation within the European Union.
When you make a transaction for a Exchange, your money is kept on their platform, so it's not completely under your power, you have their “promise” that you can withdraw your assets whenever you want. Use the platform to make buying and selling transactions, but then transfer your crypto to a wallet, which we'll explain to you later.
At this point: What Exchange choose if I am in Latin America?
→Choose one that is designed on a platform with quality and safety standards;
→Where crypto assets or other securities are available 24 hours a day:
→And that it provides you with various cryptocurrency options such as Bitcoin, Ethereum, Dogecoin, and others;
But above all, that it has the support of recognized institutions such as Y Combinator - the main accelerator in Silicon Valley - and that it operates in association with ViewTrade - a broker dealer registered in the USA!Try Hapi here and buy your favorite cryptocurrencies!
After you have registered with a Exchange, you now have the possibility to buy a stock, you set the value you have to buy your cryptocurrencies, the platform gives you the options, you send the purchase order and that's it.
You can buy them for any amount of money, because you don't need to buy a full coin now you can Buy fractions of a crypto in Hapi. So if you have $1 dollar you can now start investing in your favorite cryptocurrency. Some Exchange they may require a minimum amount.
There are currently thousands of cryptocurrencies, what's more, did you know that Facebook and Telegram tried to create their own? But they didn't achieve enough fame.
Faced with so much variety (and if you are interested in seeing the graphics visit Coinmarket), today we present to you the 2 cryptocurrencies most recommended by web users today. And that are now available on the Hapi platform.
Bitcoin was the pioneer, and because of the time it has taken and the trust that thousands of users have had in it, it stands as one of the best cryptocurrencies in the market.
It is one of the most popular cryptocurrencies and despite its volatility typical of any cryptocurrency, it is a profitable crypto asset for 3 reasons: its scarcity, its decentralization and its global acceptance. This is what its more than 3793 million buyers believe.
Ethereum is a digital currency that has been getting stronger over time, because Ethereum is a “programmable” cryptocurrency, which adds more functionality, but also makes it a little more expensive.
Ethereum has differentiated itself from Bitcoin by creating this new concept: smart contracts are used to run programs on the blockchain itself, thus making it possible to generate thousands of projects such as: Decentralized Finance, NFT, Play2Earn games and others.
This extra functionality influences the rise in demand for ETH and thus its price. Therefore, Ethereum (ETH) is a profitable cryptocurrency, at least that's what its crypto believers say.
After having purchased a cryptocurrency through a Exchange reliable - you know which one if you are in Latin America-, many people choose to let Exchanges guard these funds, which is an option for more passive profiles who are starting to invest. One recommended by Hapi.
Now if what you are looking to do Trading, you can leave them in your Exchange of transaction. But keep in mind that if you are starting out you should do more research on how this market works).
As you saw, buying cryptocurrency through a Exchange is the safest and fastest way to enter this world. Now that you know How to buy your cryptos, takes into account the following aspects.
There is no doubt that digital money is the future, so entering into an investment with a future is a good option to invest, but always in an intelligent and informed way. Always remember to invest only what you would be willing to lose, and always diversify your portfolio, these are the main tips from investment experts.
With that in mind, investing in cryptocurrency means:
→Dealing with high volatility, you must be willing to tolerate a high level of risk;
→That payments are irreversible: if you make any mistake when transferring a certain amount of cryptocurrency, it will no longer be possible to correct it;
→That all your transactions are confidential and anonymous.
The world of cryptos is not a market that everyone can tolerate. It will depend on your financial profile, how much risk you are willing to tolerate, what your financial goals are and how long you want to hold your cryptocurrencies.
Cryptocurrencies so far seem to be a financial solution to inflation, to globalization and of course they go hand in hand with digitalization, it is a fact that they are here to stay, that is the perception of many investors. So, with that encouraging picture, are you ready to invest?
We know that this is a complex topic, and that there is a lot to know, so in the next post we will share the advantages and disadvantages of investing in cryptocurrencies and we will delve more into their history.
What if you want to know another way to make that money work? Test Hapi Investments, register in minutes, transfer your funds quickly (with no minimum amounts) and start buying and selling shares without paying commissions and in real time.
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