How to start investing in cryptocurrency. Rules for Beginners

Investing in cryptocurrency is a way to generate passive income with the help of cryptographic digital money. To get a high income, it is important to make the right choice among the many analogues. Beginners usually start with Bitcoin, although there are other coins that you can look at (the total number of cryptocurrencies exceeds a thousand). To create an investment portfolio without risks, we suggest mastering the investment strategy.

Where to begin

To get started, choose a cryptocurrency and create a wallet. Register on the exchange or on several sites. Acquire crypto by waiting to buy at a low rate. Further, it is recommended to move the currency to the wallet for greater security - especially if you are not going to sell / exchange in the near future. Now just wait for the coins to rise in price or try to speculate, earning on short-term price fluctuations.

Is it profitable to invest in cryptocurrency

Such an investment is considered profitable, because, at least, unlike ordinary money, virtual coins cannot be stolen - money is withdrawn only after the introduction of a private key. The crypto is changed, including for goods. Even when transferring several million dollars to another country, the commission is charged in the minimum amount - 0-5 dollars. It does not use a central server (which can be hacked). But the main advantage is the growth of the exchange rate: for BTC in a few years, it rose from $10 to $10,000.

Investment types

Investment is divided into three types depending on the length of the investment period:

• short-term deposits;
• medium-term;
• long-term.

Most beginners, when making their first investments, try not to take risks. In their opinion, it is better not to keep certain coins for more than a month. However, here you need to understand that with a competent approach, a long-term investment will allow you to get much more significant profits. The types of investment also include mining and the creation of new blockchain projects.

Buying coins for a long time

Long-term investments are considered to be investments in cryptocurrency in 2018 for a period of more than 6 months. Quotes of digital coins increase / decrease several times in a couple of days - in the absence of experience, this can lead to psychological overwork. The main thing is to learn how to choose the most promising digital coins.

Mining

The available capital is invested in mining devices. You will need a powerful PC or ASIC equipment. At the same time, it is necessary to take into account the purchase of equipment (which can be quite expensive), increased electricity costs, an approximate change in the rate of digital money being mined, and payback periods.

cloud mining

The user earns money thanks to computing power without his own equipment: cloud mining of coins involves renting equipment from services with powerful cryptocurrency mining farms. Among the sites popular in 2018 are IQ Mining and HashFlare.

Creation of new blockchain projects

Block chain is translated as "chain of blocks". Peculiarities:

• the database is located on a large number of computers at once;
• new blocks are constantly being created, each of which includes a group of records and a title;
• the formed block is checked by other network members, and it is attached to the end of the chain - after that, changes cannot be made.

Promising cryptocurrencies in 2018 for investment

Not every new cryptocurrency deserves attention. Many are released only for speculative enrichment. But the general situation is developing in a new promising direction, yielding effective commercial products. In 2018, the future of cryptocurrency is associated with blockchain technology. Given this, the best cryptocurrencies to invest in 2018 are Bitcoin, Ethereum, Litecoin and Eos. Let's consider them in more detail.

bitcoin

Bitcoin was announced over nine years ago. Many of the early contributors became dollar millionaires. Today, Bitcoin remains the first currency and sets the trend for the entire market. It is like a locomotive dictating the course for all subsequent cryptocurrencies. There are development prospects, because less than 1% of the inhabitants of the Earth still use bitcoin / other coins. This cryptocurrency for new investors is a reliable, although not too intensive way of earning.

Ethereum

The platform is designed to function through applications based on the Block Chain. Here, the internal currency is ether or, in other words, “ether” (abbreviated as ETH). They use ethers not only as units of account, but also for the so-called "smart contracts" - this is a special computer algorithm that ensures the execution of contracts in the blockchain; action here is allowed only after the necessary conditions have been met.

Litecoin

The coin was released in 2011. It was not new in the full sense of the word: it was an improved Bitcoin, with great potential in the commercial field. The people dubbed Litecoin "cryptocurrency silver". This crypt was created using the Bitcoin code. But, unlike Bitcoin, the speed of transaction confirmation is noticeably faster here. Commissions for transfers to Litecoin are also among the lowest.

eos

The coins saw the light in 2017. Eos token holders can sponsor the development of applications within the site. Another feature is the confirmation of bets using the DPoS protocol. This approach is regarded by many as a movement towards "technological democracy". Thus, the creators of Eos challenged the usual PoS. DPoS assumes that there are elected witnesses who control the security of the network.

How to properly invest in tokens

Experts, first of all, recommend thinking critically. The number of tokens now totals 1,500 items - this figure confuses even experienced investors. The currency included in the Top 10 has a fairly large value. Therefore, it is easier for a simple user to go for tokens of a new group, which have their own unique properties combined with a more affordable price.

Risks of investing in cryptocurrency

Some options for investing in cryptocurrencies are safer, others less so. If a trader understands the market and responsibility for his own investments, then some unpredictable events rarely happen in the purchase / sale of digital coins. All currencies are different, and before buying any, it is recommended to find out if it appears on a safe exchange and if it is confirmed to belong to a well-known brand.

Reviews and perspectives

There are different reviews about investing in cryptocurrency. For example, they say that “we need to wait it out and prepare for further growth” or that “the wave that was in 2017 is unlikely to happen again.” To achieve results, such investments require a certain amount of patience. Cons: Bitcoin is too expensive for the average buyer - BTC sells for around $6,000. In any case, this market is not yet well known and has positive development prospects.