What are cryptocurrencies and what issues should we take into account before investing in them? Here we give you the keys to start in the world of cryomenetes in a safe way.
Cryptocurrency investing has boomed significantly in recent years, and many investors have chosen to diversify their portfolios by acquiring this digital currency. The most famous cryptocurrencies are Bitcoin and Ethereum, but they are not the only ones. What are cryptocurrencies?
Before we find out what cryptocurrencies are, we’ll talk about their history. Wei Dai, in 1998, was the first to propose establishing a new type of decentralized money that would employ cryptography as a means of control; This computer engineer was a precedent in the world of cryptocurrencies when creating his b-money cryptocurrency system. A few years later, in 2008, under the pseudonym Satoshi Nakamoto, the first Bitcoin protocol and the P2P digital money system were created.
Cryptocurrencies are, therefore, digital currencies whose purpose is virtual exchange, either as a currency or as an investment vehicle.
The first cryptocurrency was Bitcoin, created in 2009, but it was not until 2012 when it was consolidated as a virtual currency; currently we can find a wide range of cryptocurrencies in the market, such as Ethereum, Tether or XRP.
If you want to know more about Bitcoin and investment, we recommend that you read How to invest in Bitcoin safely, where we talk about the advantages and disadvantages and how to start investing with this cryptocurrency. Keys to start investing in cryptocurrencies
Before you start investing in cryptocurrencies, you should keep in mind that this digital asset is not subject to any government policy and its price is regulated by the law of supply and demana; it is, therefore, a very volatile asset and not suitable for conservative investment profiles. That is why we recommend that before investing, you know what your risk profile is.
Now, let’s talk about the keys to investing in cryptocurrencies. Key tips to invest in cryptocurrencies Choose a secure platform to operate Choose a wallet or wallet Do not spend money that you can not afford to lose Lee, question, formaté Start investing in bitcoin Be very careful with security 1. Choose a secure platform to trade
When exchanging fiat or fiat money for cryptocurrencies, you should hire an exchange platform, better known as an exchange, or look for a CFD broker that works with cryptocurrencies as underlying assets. Without them, unless you opt for other ways to invest in cryptocurrencies, such as mining bitcoins or investing in funds that have a cryptocurrency in their wallet, you will not be able to carry out operations.
There are different types of exchanges and platforms: in this article we analyze the best exchanges for buying and selling cryptocurrencies.
And if you opt for any other form of cryptocurrency investment, make sure you read and understand all the legal documentation for the product in question before you start investing. 2. Choose a good wallet
The wallet is the digital wallet where your cryptocurrencies are stored once acquired, a software in which the access codes to your digital currencies are managed. There are different types of wallets, depending on their level of security: they can be from apps on your smartphone to complex hardware, through paper or web.
The most famous are cold wallets and hot wallets. 3. Don’t spend money you can’t afford to lose
As in any other type of investment, you must invest in cryptocurrencies those savings that you do not need in your day to day or short term: you must ensure that, if you suffer a bearish period, your standard of living will not be affected.
In addition, being an especially volatile investment, we must keep a close eye on it: at the time of writing, a single Bitcoin has a price of more than € 15,000, its historical maximum; in mid-March 2020, its price was € 5,000. 4.Read, ask, train yourself
It seems obvious, but we believe that it is essential before investing in any product and more if possible in the world of cryptocurrencies. There are many lights and shadows with this type of investment and it is essential to have a good foundation before investing.
Surely you have heard about some scams related to Bitcoins, in P2P exchanges (exchanges between individuals without any platform in between) or others such as MiningMax, pyramid scam that took ahead more than 250 million dollars of acsi a score of users.
In Rankia you can find bloggers and foreros with great knowledge in the cryptocurrency sector with which to train and learn from scratch, such as the Blockchain Technology and Cryptocurrencies Blog or adolfo Contreras’ blog Learning Bitcoin from scratch.
And if you have doubts, you can stop by the cryptocurrency forum and ask the community
Also, you can choose a specialization according to the theme; For example:
Specialization in Blockchain and digital innovation of IEB
- Modality: Face-to-face/Streaming
- Price: € 2,950 (this amount includes academic costs, such as material, faculty, documentation and access to the facilities and services of IEB) Likewise, IEB has agreements with a variety of financial institutions, where the student can request financing options; additionally, there is a scholarship and study aid program.
- Start:February 21, 2022 and ends June 08, 2022
- Duration: 90h (Schedule: 2-3 days/week 19:00h – 22:00h).
With IEB’s specialization program in Blockchain and Digital Innovation you will be able to delve into the fundamentals of Blockchain technology, as well as current uses of technology and future prospects.
The program does not require prior technical knowledge and will allow the student to learn how to invest in cryptocurrencies using different financial instruments and the theory of portfolio management. Additionally, the specialization addresses the fundamentals and applications of other areas of digital innovation, such as Artificial Intelligence, Big Data, Fintech, Industry 4.0, Robotics and 3D Printing.
Now, it is important that you know that this program specializes you taking into account the following perspectives:
- Analysis of business models with disruptive solutions based on blockchain, transforming processes.
- Understanding and evolution of asset tokenization and token issuance for the financing of business projects
- Deepening the current practical uses of blockchain technology, by the hand of sectoral experts
- Future perspectives of the relevance and disruption of blockchain in the economy and business
- Deepening in the regulatory framework, as well as in the legal issues and challenges around the blockchain ecosystem and its impact on the different legal areas, money laundering, cybercrime, etc.
- Fundamentals and applications of Artificial Intelligence, Big Data, Fintech, Industry 4.0, Robotics and 3D Printing
- Business or developing new products and services
- Investment in cryptocurrencies, through different financial instruments and portfolio management theory.
- Understand the evolution of the cryptoeconomy from its origins to its current situation
- Learning the technical fundamentals of blockchain technology as well as the basic notions for the programming and application of Smart Contracts.
5. Start by investing in Bitcoin
If you are just starting out in the world of cryptocurrency investing, it is advisable to start small. There are many cryptocurrencies, but the most popular and followed, of which you can find more information, is Bitcoin.
That is why we recommend that you start investing in Bitcoins: in addition to being the most popular, it is the one with the highest capitalization, greater security and liquidity. In addition, many investors already talk about Bitcoin as a safe haven and even a substitute for fiat money.
