2020 05 29
Every day, many people who want to know how to start investing in cryptocurrencies write to me by email and Facebook. That is why I have written this introductory guide, to make you understand the enormous opportunities of this market, the most liquid and expanding at the moment.
Cryptocurrencies are digital currencies, developed to be used as a medium of exchange for goods and services. To protect transactions and control the development of new currencies, a protection system is used.
I remember that back in the 1990s, projects like DigiCash and Flooz tried to bring virtual currency to market, unfortunately with a negative result due to many financial frauds.
Around 2009, Satoshi Nakamoto presents what would later become the main virtual currency we know today: BITCOIN . The system on which Bitcoin is based is decentralized, that is, there is no authority or control from a central body.
Bitcoin is based on Blockchain, a decentralized system in which each participant is essential for its operation. I’m talking about the ” Miners ” or miners , people within the system, confirm all transactions through its distribution through the network, and then receive a reward for each committed transaction.
We are sorry to speak every day of people who have become millionaires with Bitcoins, think that only in 2017 the value went from $ 1,000 to almost $ 20,000. I want to remind you that in 2011 a Bitcoin was worth very few cents and only a few had the foresight and the constancy to keep their Bitcoins in the portfolio for so long. In this way, they made incredible profits when they sold for thousands of dollars.
Even the second best-known cryptocurrency , Ethereum, has seen crazy increases and in the past two years it has had a 2,700% return increase , trust me if I tell you these are percentages that are rarely seen in the investment world.
To start investing in cryptocurrencies, you need to trust an Exchange , which is a platform where electronic cryptocurrency transactions are carried out. It is as if you had to open a checking account, only much more basic and essential.
Once you have entered your capital, you can start investing immediately .
Once you have made your first cryptocurrency purchase, you should think about where to store them safely, for that reason there is the Wallet , real virtual wallets, which the Exchange itself also offers.
The main advantage is also the main reason why cryptocurrencies were born, they do not have the rigorous and oppressive control of the central authorities .
This is one of the reasons that the markets for cryptocurrency trading are extremely liquid, booming, open 24 hours a day, also on Saturdays and Sundays .
Another advantage of cryptocurrencies is that you can hold large sums with minimal costs and without any problems, unlike traditional currencies for which a safe may not be large enough and a bank account may not be secure or anonymous .
Cryptocurrencies are now the present , you may not have realized, but there are more and more companies that accept cryptocurrencies as a means of payment for goods and services.
I like to compare the evolution of cryptocurrencies with the history of the internet.
Think about when the Internet was born and established over time, there is no real moment in which it was declared successful or a particular event that has consecrated its spread or “triumph”. It has happened over the years: now you can no longer do without it .
There is a high probability that the same will happen with cryptocurrencies . There are very interesting possibilities both to maintain existing cryptocurrencies, bet on increasing their value and the possibility of finding and investing in new currencies with very high potential.
Each cryptocurrency has its own characteristics and particularities and there is always the possibility of actively contributing as an investor and partner in the listing , that is, participating in the birth of a new cryptocurrency.
ICOs are an «initial coin offering» and offer the possibility to those who believe in the project to invest in the creation of cryptocurrencies in the embryonic phase and win once the currency is listed on an Exchange .
From my experience and that of the many students in my course “Trading with Cryptocurrencies”, I can tell you that those who have invested only a few dollars in a new high-potential ICO, after being placed on an Exchange, the value of the cryptocurrency exploded in a few days, even reaching 2,000% or 3,000%.
These are the enormous potentials of cryptocurrencies and to start investing in this new tool you do not need a degree in finance: you just need to learn and, above all, apply the correct strategies , proven by professional traders , and not read online people who are traders have declared overnight.
In short, cryptocurrencies represent the future . Thinking about not spending a part of your time understanding how they work and learning the winning investment strategies in this field could be a serious mistake.