You want to invest in a cryptocurrency and want to know the opinions about this investment? In this article, we offer you our detailed opinion about these new virtual currencies as assets and the different ways to carry out transactions in this market. Cryptocurrency – Scam or Good Investment – Our Opinion
The performance recorded by some cryptocurrencies in recent years is enough to make more than one investor dream but some are wary of these results and wonder if this investment is not a scam.
In reality, investing in cryptos presents real opportunities even if it is not a guaranteed investment, as is the case for all speculative investments. If some opinions that you can find on forums dealing with trading cryptocurrencies are negative and cry scam, most often they come from inexperienced traders who have made their investments without thinking and have therefore made mistakes that have led to the loss of all or part of their capital.
By taking a minimum interest in the world of cryptocurrencies and the functioning of these particular assets, you will indeed have more chances to effectively predict the future variations of these values and thus take interesting positions in terms of profits.
Also be aware that we will discuss below and in more detail the scams on crypto currencies and some simple tips to avoid them. Best Cryptocurrency Platforms
1. eToro – Best Cryptocurrency CFD Platform
2. Pacific Union – Best Cryptocurrency Platform with Bonus
3. Vantage FX – Best Cryptocurrency Platform with Leverage 1:20 What Future for Cryptocurrencies
Before investing in cryptocurrencies, it is essential to look at the most likely future of this asset class. Indeed, the crypto sector is a very volatile sector, especially because of the total independence of these virtual currencies from central banks or governments.
Thus, and given that it is only supply and demand that will change the price of cryptocurrencies, the more investors who take a position to buy on these cryptos and the more their value will rise and vice versa. There is therefore no real limit to the rise in the price of crypto currencies.
In addition, cryptocurrencies have been showing for several years their ability to penetrate the real economy since it is now possible to use them to pay for certain online purchases and partnerships with large online sales companies continue to multiply, which gives the cryptocurrencies concerned more credibility.
Another element that demonstrates the growth of the cryptocurrency sector, we will note that some companies specializing in this field show results up sharply such as Coinbase which was recently listed on the stock exchange, proof of the very strong enthusiasm of the market for these assets.
Finally, it is essential to know that the evolution of cryptocurrencies is often linked to their media coverage. Indeed, when the media or certain personalities show attention for one or more virtual currencies, it tends to attract the attention of investors and therefore drive up their price. This was particularly the case recently with Bitcoin and Dogecoin whose price was boosted by simple tweets from Elon Musk.How to Identify Cryptocurrency Scams
If scams remain fortunately rare, the craze of investors for trading crypto currencies can tempt some unscrupulous brokers to make false promises or false advertising. To spot and avoid these scams, here are some simple tips to follow: Check the Broker’s Regulation
First, it is obvious that choosing a regulated broker is in itself a guarantee of seriousness and security. The first thing to do is to check that the broker through which you are going to trade or buy cryptocurrency is not part of the AMF’s blacklist.
If it is not part of it, check that it has the regulation of one or more financial institutions. These can be French, European or international organizations. Understanding the Technology Used by Cryptocurrency
Before you start investing in one or more cryptocurrencies, you must also make sure you have the necessary knowledge about them and above all, make sure you understand the technology on which these virtual currencies are based.
There are many articles, tutorials and even training to help neophytes understand and master blokchain technologies or to allow you to know precisely all the characteristics and specificities of these crypto currencies. Taking into account the risk of trading
Finally, although many cryptocurrencies have experienced strong upward trends in recent years, it is worth keeping a cool head by always bearing in mind that this investment is not a guaranteed investment. Risk always exists when speculating, regardless of the asset involved.
In addition, the high volatility of cryptocurrencies can lead to strong upward and bearish trends. In any case, it is not advisable to invest money that you may need on crypto currencies and above all, it is essential to set up a real money management. How to Buy or Trade Cryptocurrencies
NB: So, on eToro, the procedure for buying cryptocurrencies comes down to the steps given above.
Now, you may want to know how you can start investing in the price of cryptocurrencies. There are two main solutions for this and you can buy a cryptocurrency via an exchange platform like Revolut, Binance or Coinbase for which opinions are divided or use derivatives such as CFDs on crypto currencies that allow you to speculate on the rise or fall of their price without actually owning them. Crypto VS CFD On Crypto Exchange Platforms
Crypto exchanges work like platforms for buying certain commodities and consist of allowing you to buy crypto that are then stored in a virtual wallet. Here you can keep them there for the purpose of reselling them later or use them to pay for online purchases when possible.
But the most popular way currently to invest in cryptos is to use CRYPTO CFDs or contracts for difference. These derivatives consist of taking a position on the rise or fall of the price of an asset (here a cryptocurrency). The gain or loss is the difference between the price at the opening and the price at the close of the position.
CFDs on crypto currencies also allow you to benefit from a leverage effect that will multiply the amount of your investment compared to your starting capital. Of course, this leverage can also increase your losses but brokers have thought of everything and offer you simple but effective tools to limit your losses with stop loss orders. Investing in Cryptocurrencies: A Good Idea?
So is it finally a good idea to invest in cryptocurrencies today? Because it is clear that, in recent years, many investors have taken an interest in these stocks by seeing them above all as a profitable investment in the short or medium term.