There is no longer any doubt about the importance of cryptocurrencies in the global financial ecosystem and also in the personal accounts of millions of people around the world.
What for a long time was considered as a minor investment item or only for specialists, now covers the most important news portals in the world; as well as gain new followers in all parts of the planet.
In this sense, more and more people are looking for how to better manage their finances, something that is further enhanced with the technical advantages that are currently available. We are talking about the Fintech world, a group of young companies that are dedicated to matching the best of the digital world with the financial and economic solutions that users and clients of the 21st century are looking for.
So then, the phenomenon of cryptocurrencies can be understood within this situation framework, but we cannot simply stay here. That is why in the following article we will review how to start investing in the financial asset of the moment, what risks are involved and what advice must be followed to have a strong and promising financial life. Let’s start…
When we talk about cryptocurrencies, we must know that we are talking about the first financial asset of a 100% digital nature. With the birth of Bitcoin there in 2009, the first step was seen towards a trend that continues to this day and continues to grow: the greater use of mobile telephony and digital resources for each area of society.
In this sense, the financial sector is no exception. In fact, it is one of the areas that has transformed the most in recent times due to the arrival of digital advances and new resources.
So then, when mentioning this financial asset, we are talking about a digital resource that can have different characteristics: high volatility, as is the case with Bitcoin, Ethereum and other smaller cryptocurrencies; as well as those that are stable and find their value anchored to another, as is the case of those that define their price based on the dollar. Coins like USDT (Tether) are very popular today as an investment method.
Although cryptocurrencies were thought to replace physical money for a long time, the truth is that this financial asset is actually a new investment niche. The most popular cryptocurrency of all, Bitcoin, is actually a rare commodity, so it cannot be thought of as money issued by an agency.
Here is another important point. If we enter specialized sites such as criptoinversion.org, we will find that in the very nature of the most important cryptocurrencies of the moment is the absence of a centralized regulatory body. Just as each international currency has its Central Bank, cryptocurrencies are based on a network of users that legitimize each operation, without the need for external regulation.
How to start investing in cryptocurrencies?
Now that we have a better understanding of what cryptocurrencies are, it is necessary to know what the first recommendations are before starting to invest.
At this point, it becomes necessary to reaffirm what we have said: being an unregulated asset, the price of volatile cryptocurrencies will be more than fluctuating, so you should always take into account this index of possible volatility in your assets.
1) Select a trusted trading platform:
To start operating in the world of cryptocurrencies, it is necessary to have a platform that allows us to exchange our money or assets for this digital asset. They are usually known as Exchange or brokers. This method is the most popular today, since mining has become expensive and complex for an average user.
Later we will delve into the different types of platforms that exist, as well as which are the best depending on the type of investor we are. Now, no matter what kind of broker it is, it is always necessary to review the legal and regulatory aspects of it to know that we have deposited our money in a transparent place.
2) Choose a digital wallet:
Then, you must opt for a purse, which is also known as a digital wallet or wallet. As can be predicted from the name, it is a site where our financial assets can be stored, as well as the access keys to them.
Of course, there are different types of digital wallets, which can be simply an application on your mobile phone, as well as a complex program on your computer. The levels of security and complexity may advance as we learn more about this digital universe.
Never forget that when choosing a wallet to host and carry out our movements, we must ensure that it has the necessary security guarantees to trust our assets, as well as that it is regulated if it is a trading platform. Taking the time necessary at this point is always an excellent investment.
3) Put together a business plan:
The phenomenon around cryptocurrencies has been such that a lot of bad information has also spread. For many, these digital assets are a way to get rich overnight, when in reality they are not. Like any financial investment, it is always convenient to think about it in the long term, so it is prudent to have a business plan that adjusts to our reality.
First of all, it is convenient not to put money at stake that we cannot lose under any circumstances, since the world of cryptocurrencies is a volatile market -as we have already remarked- and also high risk when we negotiate with those of variable values. Thus, the money invested does not have to affect our standard of living.
The same is true around personal financial goals: if you want to trade, there will be better-fit and less-fit coins, while if you’re looking for a store of value, stablecoins may be the way to go. indicated alternative.
4) Training and constant dedication:
Another common misconception with cryptocurrencies is that it is just “blowing and bottling”. While it is true that new technologies have helped make it easier to invest, it is necessary to train a lot to handle the market and its variables.
The same happens with the dedication time: there are many local and global news that can affect the price of our assets, so we must dedicate daily time to follow the news. In addition, the world of cryptocurrencies is constantly changing, so we must update our knowledge often.
5) Start with the most popular coins:
Finally, when taking your first steps, you should choose the best-known currencies in the market, as well as diversify between them in order to protect yourself against possible abrupt falls. Yes, the golden rule of diversifying also applies to cryptocurrencies.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
