If you’re considering investing more in cryptocurrencies, then you should know more about them, and you may just want to learn about them for a future project. Cryptocurrency, or the digital currency is a network of networks you can use to store, transfer and keep track of money, amounts of money and information. These currencies were originally designed to be protected by cryptography algorithms. here are some important cryptocurrencies to invest.
Without a doubt, this cryptocurrency, which appeared in 2008 at the hands of Satoshi Nakamoto, has positioned itself as a leader in the digital market. It was a pioneer in the cryptocurrency sector.
For many, this is the successor to Bitcoin, since it was created by the same developers as Bitcoin with the idea of improving its performance. This is a totally secure and encrypted system.
Litecoin was created in 2011 by former Google employee Charlie Lee as an alternative to Bitcoin. There are currently about 55 million Litecoin in circulation.
It was one of the most profitable cryptocurrencies in 2017. Also, it is the second digital currency in terms of capitalization; therefore, it is considered a great alternative to Bitcoin.
Theter is classify as a stable coin, meaning that it is back by an amount equivalent to the common currency. (1 theter = 1 Dollar). The fact that your change is equal to the value of the dollar does not imply that it can be exchange for it.
Best cryptocurrency to invest
As we have mentioned, we currently find many cryptocurrencies in which to invest, beyond the pioneering Bitcoin. This is why, before starting to review how to invest in bitcoins, we are going to mention some of the most important questions that we should ask ourselves to decide which the best cryptocurrency is for us.
- How many countries recognize and accept it as a method of exchange?
- What portability does it have?
- What level of security do you have?
- How long has it been on the market?
- Analyze the positive and negative antecedents
Risks of investing in Bitcoins
The debate has long been raise as to whether cryptocurrencies will be a fad or a bubble that will eventually burst. The current problem arises from the fact that many traditional financial entities do not dare to introduce the Blockchain system within their transactions, since they claim that they do not have any type of support, and that they are not govern by any law.
In addition, it is a currency with great volatility, that is, it can make us earn a lot of money quickly or lose it just as quickly. Therefore, it does not offer guarantees of benefits, nor do they have official worldwide recognition.
Why invest in cryptocurrencies?
The blockchain technology underlying bitcoin and other cryptocurrencies has several characteristics that make it attractive to invest in:
They help increase net worth
Cryptocurrencies have been shown to be a good alternative to protect our money, as a result of the loss of value of most currencies.
Greater security thanks to Blockchain technology
The technological system use by cryptocurrencies is much safer, since it is a totally encrypt procedure, and the information can only be decrypt by the sender and receiver with a code that only they have. In addition, it is a type of universal currency, and unless its use has been restrict, we can use it to carry out transactions anywhere in the world.
Bitcoin cryptocurrency was the first cryptocurrency to appear in 2008 and since its inception, the first investors to invest in digital currencies have benefited greatly from the increase in their prices over time. Therefore, it shows us that investing in cryptocurrencies is a great opportunity to obtain benefits, even in the long term.
How to invest in Bitcoins and Cryptocurrencies?
Decide what type of cryptocurrency we want to invest with
The first step of all when discovering how to invest in bitcoins is to decide, based on the questions mentioned in the previous point, which cryptocurrency is most interesting to invest in. As of March 8, 2002, there are more than 18,000 different cryptocurrencies and the total value of all of them amounts to approximately $1.7 billion.
Choose the value to invest
Like any procedure, it is essential to plan and set goals, as well as determine how much money you want to invest. Once this is decide, it is important to observe what the best time to make the investment is.
Get a cryptocurrency wallet
You must get an address with which to request and receive the coins to be purchase. There are different types of wallets and each one is use for a type of cryptocurrency.
Join an exchange
Once you have a wallet, it is time to join an exchange because this is where the transactions will take place. Currently there are many exchanges such as Coinbase, HitBTC, Bittrex, among many others.
If you already have a wallet and exchange account, it’s time to buy cryptocurrencies. These can be purchase on the website of each cryptocurrency.