Cryptocurrencies are booming. And that is not surprising when you consider that with cryptocurrencies you can sometimes achieve hundreds to thousands of percent in return in a short time. But how exactly can you invest in cryptocurrencies and which cryptocurrencies are there? You can read all about it in this special! How can you invest in cryptocurrencies?
You can choose to actively trade in cryptocurrencies. That way you can benefit from the strong price fluctuations. It is also possible to invest in cryptocurrencies for the long term. Buy cryptocurrencies directly
Do you want to invest directly in cryptocurrencies by buying them? Nowadays, this can easily be done via the internet with iDEAL. You can also use the widget on this page to directly calculate how many cryptocurrencies you can buy with a certain amount. You never pay more than 0.25% in transaction fees and the first week you even invest completely for free: this is the perfect opportunity to spread your risks over different cryptocurrencies. Use the button below to instantly open an account with Bitvavo:Active trading in cryptocurrencies
Cryptocurrencies such as Bitcoin and Ethereum have a great volatility. This means that the price can fluctuate a lot in a day. As an investor, you can benefit from this. It is possible to take both the movements down and up. For this you do need an account with a broker where you can speculate on both falling and rising prices of cryptocurrencies.
One of the best cryptocurrency brokers is eToro. At eToro you can trade all known CFD cryptocurrencies without having to pay a fixed commission. In addition, it is possible to practice unlimited with this provider with a free demo account. If you want to invest in CFDs on bitcoin, for example, eToro is a good option.
- Practice unlimited first with a free demo
- Don’t pay commissions on your investments
- Also speculate on falling prices by going short
Do you want to try this way of investing? Use the button below to open a free demo account: 67% of retail investors lose money with this provider. Consider whether you want to run the high risk of losing money. What exactly are cryptocurrencies?
Before you start investing in cryptocurrencies, it’s important to understand what exactly they are. Cryptocurrency stands for encrypted money. You can see it as a digital form of payment where there is no central party that manages the currency. Cryptocurrencies can therefore eliminate the disadvantages of traditional money because they are traded entirely via the internet. It is not possible to receive physical cryptocurrencies or notes.
The unique thing behind cryptocurrencies is its special functionality. For example, the Bitcoin is a completely decentralized currency. This means that no bank is involved in a transaction. When you transfer money to another person, it is transferred directly to the other person. Because no third party is needed for transactions, they can be carried out faster and cheaper. Some advantages of cryptocurrencies
- Cryptocurrencies are completely decentralized
- Transactions are faster and cheaper
- Transactions are often difficult to untraceable
- Cryptocurrencies are increasingly becoming a valid means of payment
Why is investing in cryptocurrencies interesting?
Investing in cryptocurrencies can be very interesting due to the strong volatility. Below you can see a graph of the price development of the Bitcoin.
As you can see, high peaks are regularly alternated with low valleys. In 2018, a peak of more than € 18,000 was reached. In 2019, on the other hand, there was a low point around € 4,000. Within a few months, the price rose again to € 10,000 and then dropped again to € 4,000.
This price trend will deter many long-term investors. For investors who are willing to take a little more risk, this can be interesting. After all, when you buy and sell regularly, you can achieve returns of tens of percent.
Investing in cryptocurrencies is not suitable for everyone. You must be willing to trade a high-volatility security. You have to be able to control your emotions in case of heavy losses. Chances are that at some point you will lose tens of percents in a position. Do you think you can handle this? Then investing in cryptocurrencies can be very interesting and profitable! Successful investing in cryptocurrencies
Do you want to achieve good results with your investment in cryptocurrencies? With these tips you will ensure that you achieve better results than the masses. Do enough research
In the past, many people have stepped into cryptocurrencies without doing any research. The postman, the milkman and the butcher who took the rumors about the revolutionary Bitcoin a bit too seriously. Many of those people stepped in at the top and then lost thousands of euros.
Avoid losing a lot of money with your investment in cryptocurrencies and use your wits. When you start investing in shares, you do not randomly buy up a few companies. Therefore, also do enough research when you are going to invest in cryptocurrencies. See what the advantages of the coin are and research how the trends in the cryptocurrency markets come about.
Especially when you want to invest in cryptocurrencies in the long term, it is important to conduct thorough research. Go along with hypes
Hypes can be your best friend! Many people have gone in blind and randomly bought up various cryptocurrencies. Of course, this is not wise. Nevertheless, you can benefit from the hype around the cryptocurrencies.
If you want to invest successfully in cryptocurrencies, you can do research into the sentiment of the masses. Many people who invest in cryptocurrencies have little knowledge of investing. They act a lot on emotion.
This means that the price of a cryptocurrency can react strongly to news reports. Often the price reacts excessively strongly to adverse news. It is precisely at these moments that you can look for an interesting buying moment. Successful crypto traders realize that they need to understand the masses in order to achieve good results.
Diversifying your investments
Every investor understands that by spreading your investments you reduce your risks. Strangely enough, this principle is sometimes forgotten when investing in cryptocurrencies. Many people buy one or two cryptocurrencies and leave it at that. However, it is smarter to do proper research on the different cryptocurrencies and to buy several interesting coins.
That way you prevent that you lose all your money because a cryptocurrency goes for order. In addition, you increase the chance that you will buy an unexpected pearl. In the past, you could achieve returns of thousands of percent with some cryptocurrencies. It would of course be nice if you have bought one of those cryptocurrencies. Understand the premise of scarcity
The price or value of a cryptocurrency does not say much. More important is the market capitalization of the coin. The market capitalization is the total value of all outstanding cryptocurrencies. The Ripple is a coin that is only worth around twenty cents. However, its market capitalization is more than eight billion dollars, making it one of the largest cryptocurrencies in existence.
Many cryptocurrencies are scarce. Bitcoin, for example, is known to never exceed 21 million. When the demand increases and no new bitcoins are added, it is not unlikely that the price will rise further. Therefore, research for each cryptocurrency how the supply side is doing. In this way you can estimate how the cryptocurrency can develop in the future. Determine what you can lose
Before you start investing in cryptocurrencies, it is important to consider what you are willing to lose. Cryptocurrencies are extremely volatile and you have to have nerves of steel to get good results with them. It is therefore important to determine for yourself how much money you are willing to lose. Only in this way can you prevent a fiasco. Which cryptocurrencies can you invest in?
On beleggen.info you can find information about all major cryptocurrencies. In this article you can read briefly what each cryptocurrency exactly entails. When you click through you can find more information about the specific cryptocurrency. Then you can also view the current price and start investing in the relevant currency. Investing in Bitcoins
