The first association when you hear the word cryptocurrency – money, the first association when you hear the word cryptocurrency trading – more money! Since their inception, ie the last ten years, cryptocurrencies have been accepted as one of the most lucrative ways to invest, right after gold.
For the uninitiated, we will say that it is virtual money that exists only in digital form and that its use is wide and still expanding. There are thousands of different cryptocurrencies and their number is increasing day by day. However, one has become synonymous with all of them – the bitcoin. This digital currency was created in 2008 by a group of people known under the pseudonym Satoshi Nakamoto and since its release in 2009, this currency has seen a steady increase in value. Many got rich thanks to this currency, because in the beginning its value was $ 0.03, and today it is more than $ 19,000!
However, investors know that the path to wealth is not always easy and that anyone who wants to invest in cryptocurrencies, whether it is trading or mining, must take many steps to increase their chances of earning money. Otherwise, the chances of earning are much less.
Let’s start with what each person can do at the very beginning and where many make the biggest mistake.
1. What wallet to choose from?
Keeping money safe is crucial when you embark on buying cryptocurrencies. Many make the mistake at the outset without thinking about the risks they are exposed to if they do not choose the right wallet. Usually, beginners opt for a simpler or cheaper version, which is very often unsafe. However, they do not realize this until they find themselves the target of hackers who ravaged their cryptocurrencies. Therefore, it is very important to be informed about the basic things before you start investing, and one of the main ones is certainly the choice of wallet. There are two types of wallets, and they are cold and hot. Hot wallets are riskier because they require internet access, making them an easy target for hackers to steal your cryptocurrencies and even data. On the other hand, we have a cold wallet that is much more secure, but also more expensive. While many know that the security of a hot and cold wallet is incomparable, they still choose the hot one at the outset, calculating that they will buy a cold one when incomes start to rise. Unfortunately, this proved to be the wrong move because the cryptocurrencies disappeared from the account before that. Therefore, this is the first and most important step towards a successful investment.
2. Mining and trading
Cryptocurrency trading and mining are considered basic ways to get the desired profit. Of course, it is not enough to just decide that it will be mining and think that your job is done. No, that’s the wrong strategy. What you have to do is ask yourself a few questions, think, and only then answer them. The first and basic question is how much are you willing to wait until the first paycheck arrives. If you are an impatient person or a beginner by nature, then we recommend trading as it is considered easier than mining. Taking into account the fact that the situation on the market changes several times a day, there is a good chance that you will quickly reach the desired goal, and on the other hand, we have mining which is considered a more difficult and time-consuming process and is therefore reserved for the experienced and patient. To succeed, you need to join one of the mining pools, because in this way you increase your chances of earning. You also have to choose one of the three mining methods and find out about electricity consumption because it is large.
3. Limited budget
Once you start investing or gambling, it’s hard to stop. It’s hard to get up, close the computer and say “Enough for today”. Unfortunately, many are under the misconception that they can quit whenever they want, so they often end up in debt or spend more than they planned. The golden rule says that you should never invest more than what you are ready to continue your life without.
4. Investing in several currencies
You heard that the value of Ethereum jumped significantly and you decided to invest everything in that currency, but the next moment you were left with empty pockets? You must think in the long run when developing a strategy. This means that it is better to enter several different currencies because we are aware of the rapid changes in the value of cryptocurrencies. In this way, you will reduce the chances of the above scenario happening.
5. What about applications?
Apps are considered very useful things for beginners and those who do not want to spend their precious time in front of small screens. What is good about them is that they do all the work for you, informing you about every change that happens in the market. Many are skeptical about applications, but they are very useful, especially if you are a beginner and need time to master the basics of investing.
6. What about the platform?
Choosing a platform sounds like an easy job. Today, there are thousands of platforms on which you can trade, but there are also a lot of fake ones that were created to take your money. If you’ve heard of the saying “Too good to be true”, stick to it. You can learn more about good investing strategies if you click www.onrec.com.
The time of cryptocurrencies is just ahead of us. Do not underestimate lesser-known and valuable currencies, because they can also bring good earnings. Always approach the investment with caution and think twice before taking the next step, because, although a speed of reaction is important in this business, prudence is crucial.