Is it profitable to invest in cryptocurrencies?

Anyone can make huge profits by investing in cryptocurrencies. You just have to invest at the right time, like now, when no one could lose.

However, investing at the right time requires luck. Only those who improve their cryptocurrency investment strategy every day can do so with guaranteed success.

Cryptocurrencies have gone from an unknown plane to a protagonist. In recent years the concept of physical money as it is known has evolved and has given way to digital money or so-called cryptocurrencies. Worldwide, 45 million people, the equivalent of the entire population of Spain, use bitcoins, according to data from Blockchain.com.

So if lately you just ask yourself if it is profitable to invest in cryptocurrencies, rest assured that in this article we try to give you an answer to that question.

Should I consider investing in cryptocurrencies?

A cryptocurrency is a type of digital currency and payment system that does not depend on the traditional payment networks that we have become accustomed to. Cryptocurrencies are decentralized. They are not issued by a central authority, such as a bank or a government.

Cryptocurrencies are based on blockchain technology, a computer network completely independent from centralized control that keeps a record of all transactions in the past and those that will take place in the future.

Investing in cryptocurrencies is becoming more and more popular. It is a global investment opportunity available to anyone, anywhere in the world. They are a highly profitable instrument, very volatile and with a certain risk factor.

Cryptocurrencies are becoming an acceptable means of payment around the world. Blockchain technology is reliable, it cannot be forged, tampered with or changed.

No other technology allows you to send money from one part of the world to another without an intermediary to carry out the transaction. It is the cheapest way to send money from point A to point B known today.

You are in full control of your money. No questions asked. All you need is a computer or a mobile phone and you can make transactions with whoever you want whenever you want.

Speed ​​is what differentiates cryptocurrencies from traditional banking. While a bank transfer can sometimes take up to 2-3 days, a cryptocurrency transaction is settled in a few minutes. Some are confirmed in seconds.

So what else makes cryptocurrencies so valuable? Your offer is limited. A maximum supply means the maximum number of coins that will exist for a given cryptocurrency.

Let’s think about this for a moment. How is the paper money that we use every day created? It is printed by central banks and governments when they need it. Bitcoin doesn’t work that way. You can’t press a button and create more Bitcoins or add new sheets of paper to the press. Cryptocurrencies are rare. The smaller the amount of an important asset that exists, the more valuable it becomes.

Bitcoin and many other cryptocurrencies are created using a method known as mining. Mining refers to solving complex mathematical problems that produce new bitcoins.

How much to invest in cryptocurrencies?

Anyone with access to a computer or mobile phone can invest in cryptocurrencies. Everyone can afford them.

Depending on your budget and your goals, you can invest as little as 1 euro or 1000 euros. There are no limitations to what you can do. The only limitations can be set by the exchange where you are buying your cryptocurrencies. Especially for young people, cryptocurrencies are considered the fastest way to get wealth.

Always remember to invest only what you can afford to lose and diversify your portfolio. “Don’t put all your eggs in one basket,” investment experts advise.

Cryptocurrencies and Blockchain technology are still in their early stages and these assets will dominate the market in a few years. Our generation has had the opportunity to invest in the future of the Internet. 30 years ago, during the dot-com era, many of us didn’t get a chance to participate. Will we make the right decision now?

Tips for investing in cryptocurrencies

If you are just starting out, you are probably eager to start investing in cryptocurrencies. But don’t rush. Take a little time to develop a basic cryptocurrency trading strategy.

Do you know the basics of blockchain and Bitcoin technology? Do you know what circulating vs total supply means? Do you understand what inflation is? Do you know exchanges, wallets, private keys and public keys?

If you cannot answer these basic questions, you will have problems investing in cryptocurrencies, so take some time to prepare, it is essential.

Every day, potential investors lose out on cryptocurrency investment because they don’t trust how to get started. Even seasoned investors lose out on new tools or cryptocurrencies that could generate significant profits simply by not staying active.

Why? Because they are afraid of making mistakes. Taking action is the first step, so feel free to immediately dive into this area. Action will result in experience, and experience will result in better decision-making. In fact, experience is about learning from the mistakes you make.

What makes Bitcoin and many cryptocurrencies innovative is their underlying technology. But if you don’t understand the fundamentals of technology, the path will be somewhat risky.

Now that you’ve taken action, take your time and find the right cryptocurrency exchange with the best rates. When an investor starts investing in cryptocurrencies, many trades are made a day in the hope of small profits. The gains are positive even if they are low at the beginning, keep that in mind.

And remember rule number 1 when investing; don’t invest more than you can afford to lose.

2021: the best cryptocurrencies to buy

Doing business with cryptocurrencies and investing in them is very profitable, but you must follow some rules and market trends to understand what you should buy or sell with the price of cryptocurrencies. Trading digital currencies will provide you with one of the most promising opportunities that you should instantly seize.

Among the best cryptocurrencies to invest in 2021 are:

Ethereum

Ethereum is the second-largest cryptocurrency in terms of market capitalization, behind only bitcoin, and is the third-largest by daily traded volume, behind Tether and bitcoin.

Ethereum was created by Vitalik Buterin in 2014 and is the largest platform for decentralized applications also known as DApps. Ethereum is the platform and Ether is the currency used on the Ethereum platform.

Like Bitcoin, the Ethereum platform is decentralized and allows people to connect directly through a powerful supercomputer without the need for a central authority.

How does Ethereum work? Ethereum works thanks to Smart Contracts, a set of conditions and actions created by its developers and executed by the network taking into account a set of defined rules.

Is Ethereum still a good investment in 2021? If it is! Due to the capabilities of its smart contracts, Ethereum is very popular and valuable.

Bitcoin

Bitcoin is the world’s first and the largest and most popular cryptocurrency on the market. It was created in 2009 by Satoshi Nakamoto, an anonymous software developer whose identity has not been revealed to this day.

He had a vision for a standalone payment method that could be transferred without using banks. It’s hard to think of a crypto wallet without bitcoin.

There are several reasons why bitcoin has always been considered as a reasonable investment it is decentralized, that is, there is no central institution that controls the supply of bitcoin. The supply of bitcoin is limited. Fiat currencies can be printed whenever needed and their supply is unlimited. Bitcoin has a maximum supply of 21 million bitcoin and there have already been 18.715 million, according to data from Blockchain.com.

Bitcoin transactions are anonymous. Since bitcoin is not governed by a central entity, users do not have to identify themselves in order to carry out transactions.
However, once confirmed, bitcoin transactions cannot be reversed, changed or deleted.

Litecoin

Litecoin is a fork of Bitcoin and an open-source decentralized global payments network.

It has an experienced development team working on it, headed by Charlie Lee, who worked for Google and Coinbase.

Litecoin is a very innovative currency and has introduced various improvements and innovations in blockchain technology that were later accepted and implemented by Bitcoin as well. Those include SegWit and Atomic Swaps.

In terms of daily volume, Litecoin is one of the most widely used cryptocurrencies due to its near-zero cost instant transactions. This also makes Litecoin an excellent option to buy other cryptocurrencies. It has more than 400 trading pairs available on a long list of exchanges.

Conclusions

So is it profitable to invest in cryptocurrencies? There is no doubt that digital money is the future, so it is always good to dive into an investment with a future. Of course, for now, cryptocurrencies are financial assets with high risk due to their high volatility.