Do you want to start investing in cryptocurrencies but you don’t know which are the best ones to bet on and how to do it safely? In the future, cryptocurrencies could completely replace physical coins and therefore it would be better for you to understand by now works their mechanism.
First of all you need to know that at the investment level, cryptocurrencies have a high volatility: their price can go up and down even drastically in a very short time.
If you already have open your wallet or you are about to open it I suggest you to adopt all the security measures that the web makes available to you to prevent a hacker from stealing your data and losing your capital.
Why investing in cryptocurrencies?
Among the main reasons for investing in cryptocurrencies we find first of all their uniqueness, compared to physical coins. In fact, with decentralization, cryptocurrencies do not depend on any government or by central banks.
Probably one day they will be the only option available because of the continuous digitization we are moving towards. Many investors have even cast their eyes on them as a possible refuge in an age of inflation.
As is happening now with the Russian-Ukrainian conflict, the currencies of the respective countries are completely losing their value. Precisely for this reason many Russians are resorting to cryptocurrency investment.
When is it worthwhile investing in Bitcoin
2022 has started with several complications that have also affected the cryptocurrency market but we know that when prices go down there is the best time to buy!
Bitcoins are still the most popular cryptocurrency attractive to many investors but there are many other cryptocurrencies that are exploding and that deserve our attention.
With the fluctuations nowadays investing in BTC is recommended for those who plan to keep their capital for at least 10 years. If you were thinking of a short-term investment with considerable and safe returns, I will show you other options.
Cryptocurrencies: the best investments for 2022
Among the top three cryptocurrencies to invest in in 2002 I recommend Lucky block, a cryptocurrency that quickly reached a market capitalization of $ 1 billion and already in the first month counted more of 40 thousand investors.
Another very interesting cryptocurrency are the Dogecoin because recently Tesla announced that it will accept only this cryptocurrency. This was officially communicated on twitter by Elon Musk on January 14 this year.
Mistakes to Avoid as a Beginner
If you have just started investing in cryptocurrencies then in parallel with the successful strategies I recommend you to analyze those of failure! Why? It is easy to make mistakes when you still don’t know the mechanism well.
Trading as a beginner is one of the biggest mistakes mainly because it is thought to be simple but the market is a question of probability and high instability, so it doesn’t follow an obvious logic, unless you are a professional analyst!
Buying tokens of projects you do not know can be a very high risk because most projects don’t have a future or are a scam. So as long as you will not be well informed and familiar with this way, stick to more projects stable and safe.
Having the wrong idea of price: if a cryptocurrency is cheap, it doesn’t mean it’s worth nothing. The price is actually related to the quantity of cryptocurrencies available, their capitalization and the number of tokens available.
Cryptocurrencies: how to protect your security
First of all it seems obvious but it is worth thinning it, there are no zero risk investments and when we talk about cryptocurrencies the percentage of risk increases significantly compared to other investments.
So first point: DO NOT invest a large sum of your capital! In fact, if you decide to dedicate 3 percent of your wallet to cryptocurrencies and lose everything, you would still have the remaining 97 percent of your wallet.
Secondly, as already mentioned, at the beginning do not get carried away with all the exchange platforms that exist: start with the more known and popular even if they do not have maybe they offer you more options.
Among these I recommend Bitpanda and Binance, because they are very simple and very easy to use. They also allow you to manage many cryptocurrencies and with low commissions.
How to start investing
To start investing, all you have to do is deposit a capital in one of the available exchange platforms, for example with a bank or postal transfer. This will activate your crypto wallet.
At this point you will have to choose some cryptocurrency you want to invest. Let’s take Bitcoins for example: to exchange euros with Bitcoin you will have to do only one step but if you want to buy Altcoins, for example, you will have to take a next step.
To buy Ethereum you will not be able to use your euros directly but you will have to convert them into another currency or cryptocurrency depending on which exchange transactions are possible with Ethereum, such as Bitcoin.
Private wallets
By investing through exchanges, we entrust our virtual wallet with the capital we own in cryptocurrencies to the exchange itself.
There are several Apps that offer a virtual private wallet. I recommend Trust wallet that is also what the Binance platform itself recommends. Another option is that open a physical wallet.
Among these hardware wallets we find some keys like Trezor or Ledger among the most famous that allow you to opt for a non-digital choice.
The scams
If you browse the news, you will find about scams in the world of cryptocurrencies and you will already know what are the risks. Being an evolving industry where there is a lot of money, scammers are on the rise every year.
Hackers try to break into crypto wallets in several ways. To increase the security of your virtual wallet, start to enter the two-factor authentication.
This allows you to further reduce the possibility of your account being hacked. Be careful not to use SMS authentication because it is the easiest for a scammer to get around.
Once you feel that your wallet is protected and safe, you must not be attracted by the so-called “red herrings”, and by these I mean those platforms that promise you very high earnings, easy and low risk.
Sometimes it’s not simple to quickly identify a scam and even the biggest investors beware they have made mistakes that are very hard to digest like the scam and identity theft by Elon Musk.
Read also: How to prevent hackers from intruding on your crypto wallet
