How to invest in cryptocurrencies?

Cryptocurrencies represent the new frontier of investment, paving the way for potentially high returns but also unprecedented risk-taking. But how to invest in cryptocurrencies? Between Bitcoin, Ethereum, altcoins and NFTs, this abundant universe is attracting more and more investors seeking to diversify their portfolio. But how don't get lost and invest wisely in this complex ecosystem? In this article, discover all the keys to knowingly investing in cryptocurrencies.

If one thing is certain, cryptocurrency is not going to disappear. As more and more businesses accept cryptocurrency and the blockchain technology that makes it easier to operate, you may inevitably need to learn the dynamics of the crypto world and even consider investing in it.

In this article, we will decode the complex but exciting world of cryptocurrencies. You will discover the essential bases to understand the functioning of this new asset class and its challenges.

We will review the best tips for invest while limiting risks, by building a balanced portfolio adapted to your profile. We will also discuss the different options available to you: short-term speculative trading, long-term investment, staking, mining... This investment advice will also be valid for better understand Non Fungile Token.

🎯 Why invest in cryptocurrencies?

A cryptocurrency is a digital currency using a digital payment system that does not rely on banks to verify transactions. Investing in cryptocurrencies today is the best investment you can make.

I say this because the Leaders who bought the first Cryptocurrency on “Bitcoin“, have for the most part abandoned their job or function they exercised, because they now have financial autonomy.

Many have experienced the same prosperity with other Cryptocurrencies like Ethereum, XRP, Bitcoin Cash, BNB, Smart Chain, Litecoin, Theta, Solana etc., Cryptocurrencies that we can no longer buy today as at the time of their creation and launch on the crypto market, because they have become more expensive. You will find these Cryptocurrencies when you create your account on Binance, coinbase...

It's true, there are also other, shorter ways to make money on the internet. But there is one thing, know that you will never, I mean never, have a clear conscience. You can do trading, forex option or Bonnaire.

Without complete training and without substantial capital (not 10 to 100$) you will not go far my Leaders.

✔️ Finance will now be at least 80% digital.

It is finance that controls the world. Everything is done through finance, it is the big financial institutions that decide the future of the world. The principle is simple, it's the person who has the money who decides like the IMF, the World Bank, the USA or the Rich of the family. Cryptocurrency is positioned as the heart of digital finance.

✔️ Cryptocurrency has great return potential

For centuries, the world has never experienced a major financial revolution like that of cryptocurrencies. Anyone can invest in CRYPTOCURRENCY and become a Millionaire or Billionaire.

• In 2010: 1BTC = 0.01$
• In 2021: 1BTC=50$
• In 2022: 1$FINA =0.0055$
• Objective in 5 years
• In 2026: 1$FINA=1$, 10$, 100$, etc.

✔️ Cryptocurrency is the future of finance

There is only 5% of people who use CRYPTOCURRENCY in the world at the moment, imagine when 10% or 20% of people will use CRYPTOCURRENCY, its potential return will be multiplied by 100, by 1000, etc.

✔️ Cryptocurrency is a secure investment

Cryptocurrency uses a technology called Blockchain, it is decentralized, secure and at a lower cost.

✔️ cryptocurrency will change global GDP or money supply in the world

The money supply in the world at the moment is estimated at 300 Billion Dollars USD. This currency will be multiplied by 000 thanks to Cryptocurrencies within 10 years.

There are some holders who have more than 1000 Billion Dollars USD in their cryptocurrency wallets. The poor of tomorrow is the person who will not have at least 1 Million USD in its Cryptocurrency wallets.

🎯 How to choose a cryptocurrency to invest in?

Before you go ahead and buy coins or tokens just because someone says it's a good investment, it will pay off do research.

First of all, it is important to understand that choosing a good cryptocurrency is not like choosing a good stock. A stock represents ownership of a company that creates profits for its shareholders, or at least has the potential to do so. Owning a cryptocurrency represents ownership of a digital asset with zero intrinsic value.

What causes the price of a cryptocurrency to increase or decrease, It’s supply and demand. simply. If there is an increase in demand and a limited increase in supply, the price increases. If supply becomes limited, the price increases and vice versa.

So, when evaluating a cryptocurrency, the most important questions to answer are how the supply is increasing and what will increase demand for the coin.

You can answer these questions by reading the white paper published by a cryptocurrency team to generate interest in their project. Look at a project's roadmap and see if anything could trigger an increase in demand.

Search the team behind a project and see if she has the skills to execute her vision. Try finding a community of people who are already investing in cryptocurrency and gauge their sentiment.

🎯 Things to consider before investing

Investing in cryptocurrencies is very speculative. Despite stories of investors making millions, investing at an inopportune time can lead to rapid and extreme losses.

Although the opportunity to get rich by investing in cryptos is enticing, it is important to understand the characteristics of cryptocurrency. This Above all, the market is extremely volatile. An asset that can rise so quickly is also subject to equally steep declines.

Unlike other markets, the future of cryptocurrency regulation is uncertain. Some countries that allow more or less free use of Bitcoin include the United States, Canada, and Australia, to name a few. El Salvador even adopted Bitcoin as legal tender.

But other countries, like South Korea, impose restrictive regulations on cryptocurrency, while China has essentially banned cryptocurrency. Even in the United States, new legislation is targeting crypto investments for taxation.

Once you find a cryptocurrency that you think will make a good investment, it's time to start buying.

✔️ First step: create your account

The first step involves opening an account with a cryptocurrency exchange. Most stockbrokers do not support cryptocurrency trading.

Coinbase is one of the most popular and user-friendly exchanges starting out in the US Other options include Gemini, and newer brokers such as Robinhood (NASDAQ: HOOD) and SOFI (NASDAQ: SOFI) Crypto support.

✔️ Step Two: Fund Your Account

The second step is to fund your by the payment methods that are convenient for you. To invest and earn in cryptocurrencies you must first fund your account. If you are in Africa, you have the option of using MTN Money, Orange Money, Moov and other operators to rectify your account.

Once you have funded your account with fiat currency, you can place an order to purchase your cryptocurrency. Cryptocurrency orders work the same way as stock market orders. The trade will match your buy order with someone who will place a sell order at the same price and complete the trade.

After your transaction is complete, the exchange will hold your cryptocurrency for you in a custodial wallet.

✔️ Third step: buy the cryptocurrencies of your choice

The third step is to buy the crypto of your choice. Buying cryptocurrency is the easy part. As a crypto investor, you need to be prepared for volatility. Crypto, in general, is more volatile than traditional asset classes such as stocks. The fluctuations of 10% price or more in just a few hours are very common.

Additionally, you need to consider how much of your portfolio you ultimately want to allocate to a specific cryptocurrency and the asset class in general. With the volatility of crypto, be sure to give yourself wide bands of acceptable allocations. If your investments fall outside these ranges, be sure to rebalance.

🎯 Pre-investment tips for beginners

✔️ Invest small amounts

The second tip for beginner investors in cryptocurrencies is to invest small amounts first. Start trading on Binance Smart Chain (BSC). Transaction fees are very low.

You cannot do this on the Ethereum blockchain where you spend a lot on gas fees. There are other blockchains where the fees are also low like Avalanche, Solana, … but nothing comparable to BSC to practice in the field.

During the first month, only invest very small amounts per cryptocurrency. You will not become a millionaire but you will avoid ending up broke! Be prepared to completely lose your investment. If you can't afford it and sleep easy at night, don't!

✔️ be careful  

Caution is the third newbie cryptocurrency investor tip we can give you. Only invest the money you are prepared to lose. We can't say it enough, but all investments involve risk.

Never invest your rent money, your children's school fees, etc. Don't put yourself in difficult situations; no one is able to predict the future of cryptocurrency with any accuracy.

✔️Be curious 

We are convinced that the more knowledge you have in the field of cryptocurrencies, the more you will be able to sharpen your critical spirit and avoid errors. Curiosity is therefore the fourth piece of advice for beginner investors in cryptocurrencies.

Don't trust people who claim to be able to predict the evolution of the market and cryptocurrencies. For information, use reliable sources like cointelegraph.com or coindesk.com – or bitcoin.com

✔️ Have a mind of steel 

You certainly know it, but as in any investment your psychology will have a very important impact on your decisions. Some cryptocurrencies can undergo very large fluctuations and it is very easy to get carried away by our emotions. The goal is to stay as rational as possible and not give in to generalized panic (FUD).

This is why we used to say that if you have a very fast beating heart, then you are not cut out for cryptocurrency. A bear market is not always a bad thing. This is an opportunity for you to buy your cryptocurrencies and store them.

✔️ Learn more about cryptocurrencies

The first advice for beginner cryptocurrency investors is to learn about cryptocurrencies first. The vast majority of new cryptocurrencies are shitcoins, but it is possible to tell the difference between real nuggets and shitcoins. Now, let's start by finding a cryptocurrency.

Go to the BscScan website. Then go to “View BEP-20 Transfers”. If the list looks confusing, don't worry. Look at the rightmost column”Tokens”. You should look for the gray icon next to the cryptocurrency names. This means that cryptocurrency is new.

Established cryptocurrencies already have their icons displayed and this usually means that you are too late to make high gains. You can refresh this page every second, you will always find new cryptocurrencies.

✔️ Do not start playing day trader 

The day trader refers to the market operator who engages in day trading. A day trader buys and subsequently sells financial instruments such as stocks, currencies or futures and options during the same trading day, which means that all positions he creates are closed on the same trading day.

A successful day trader must know which stocks to trade, when to enter a trade and when to exit it. Day trading is growing in popularity as more and more people seek financial freedom and the ability to live their lives as they please.

We see far too many newbies starting their investments straight from day to day trading. Trading is a very complex profession that requires real knowledge in the field. You cannot improvise as a trader overnight. Be careful and start small. To start, we recommend long-term investments. Learn more about day trading.

✔️ Remember to secure your cryptocurrencies 

We can never say it enough. Keeping your portfolio secure is one of the beginner cryptocurrency investor tips we can offer you. Don't put all your investments in the same account. If you keep your cryptocurrency on a dedicated platform, consider enabling two-factor authentication to secure your accounts.

And if possible not with an SMS sent to your mobile phone, but through a dedicated application, such as example Google Authenticator. Choose a portfolio suited to your investment. The safest way remains hardware wallet (Ledger Nano S).

🎯 The best investment strategies

To monetize your cryptocurrencies, you have several options. But in this article I present you just a few strategies.

✔️ day trading

Day trading is the best way to make big money with cryptos. Unlike the strategy “ HODL » (Long-term investing), day trading involves holding a crypto asset for a short period of time and then selling it when its value increases.

This period can vary from a few minutes to a few hours or even days, depending on the crypto.

To succeed in day trading, you have to constantly keep an eye on market developments. This requires strong analytical skills and a very good technical knowledge of the market. If you are a complete beginner in cryptocurrencies, I strongly advise against day trading.

But, if you have experience in traditional stock markets, day trading is much the same and it can very quickly become very lucrative.

✔️ Stacking

To invest and earn in cryptocurrencies, do stacking. Simply put, stacking is an alternative method to mining for validating and recording blockchain transactions.

In a Proof of Stake system, token holders place their tokens in a wallet connected to the blockchain. These tokens are then used to validate transactions and create new blocks.

Stacking works the same way as a fixed deposit account. Jump here, rather than earning interest as in the case of a fixed deposit account, you earn additional tokens as a reward as a validator of transactions in the blockchain.

However, stacking is not available for all cryptocurrencies. It is only possible with those based on a Proof of Stacking system. Here are a few : Cardano, Algorand, Cosmos, Tezos

However, the more participants in a blockchain offering staking, the lower the amount of rewards. The main factor that will define the amount of money you will receive for stacking is the downtime of your chips.

✔️ Airdrops

To invest and earn in cryptocurrencies, you can use airdrops. Airdrops are probably the easiest way to earn cryptos. No skills, no equipment is necessary. Just complete small tasks online and you'll get paid in cryptocurrency.

As with dividends, in addition to having a fraction of Bitcoin free for a fraction of Bitcoin purchased, members of my group who used my link were able to accumulate rewards 100% free.

Buy now and keep (the holding)

The most common way to make money with cryptocurrencies is to invest and hold cryptos for the long term. This is called “HODL” in cryptocurrency vocabulary.

Like many investors in the stock market, you can invest in certain cryptocurrencies and hold them until the price is above your original purchase price, then sell them for a profit.

However, beware of cryptos you buy. Before purchasing, research the viability of the currency and its long-term market implications thoroughly. Here are some questions you should ask yourself before investing in crypto:

• How long has this crypto been around?
• What are its uses (means of payment, store of value, smart contracts)
• Its history and its resilience in the market

I advise you to restrict yourself to cryptos that have real use in the world and have been around for a while.

However, you do not have to limit yourself to most famous cryptos. There are thousands of altcoins that have incredible price swings and from which you can earn a fortune.

🎯 The best cryptocurrencies to invest in

To invest in cryptocurrencies, you will need to know the best cryptocurrencies. While Bitcoin is widely considered a pioneer in the world of cryptocurrencies, analysts take many approaches to valuing tokens other than BTC.

It is common for analysts to assign great importance to the ranking of coins relative to each other in terms of market capitalization.

We took this into account in our thinking. But there are other reasons why a digital token may also be included in the list.

🔰 Bitcoin (btc)

Bitcoin is considered the original crypto. Its launch in 2009 is considered to be what started the whole cryptocurrency movement. Bitcoin was developed by a person or working group under the pseudonym of Satoshi Nakamoto.

Bitcoin was introduced as an alternative to the traditional monetary system, known in the crypto world as fiat currencies. The true identity of Satoshi Nakamoto has never been revealed.

In the Bitcoin white paper, Nakamoto asserted that a fiat monetary system controlled by central banks and a small number of financial institutions led to a centralization of wealth and power, resulting in financial and social mobility.

The savings of ordinary people have been hit by inflation, caused mainly by monetary expansion and the printing of money by central banks.

Bitcoin solves this problem by setting the maximum number of units that can be created, thus avoiding the inflation caused by money printing.

🎯 Advantages and disadvantages of bitcoin

Bitcoin is the most popular cryptocurrency, and it is used for various purposes including making payments and investments.

One of the main advantages of bitcoin is that it is decentralized. Which means it is not controlled by any government or institution. This makes it more secure and less prone to manipulation.

Bitcoin also has low transaction fees, transaction times fast and it is anonymous.

However, bitcoin also has disadvantages. One of the main disadvantages is its volatility, which means that its value can fluctuate considerably. It is therefore difficult to predict the value of your bitcoins in the future.

Also, bitcoins can be difficult to use for new users, because they require a certain level of technical knowledge. Finally, bitcoins are not widely accepted by merchants and it can be difficult to turn them into fiat currency.

🔰 Ethereum (Ether)

Ethereum is historically the second most popular cryptocurrency, but it is very different from Bitcoin. She is actually the name of the blockchain platform and Ether is the name of the cryptocurrency. Ethereum is a blockchain platform for “ smart contracts ».

The platform can also be considered as a standard with specific rules in which different applications, or decentralized applications – can be created.

Ethereum Dapps range from games to initial coin offering, or ICO for its initials in English, which are the equivalent of crowdfunding or public offering for sale in the cryptocurrency world.

Although other smart contract platforms have been launched since Ethereum, each claiming to be more sophisticated blockchain technology, the original platform continues to maintain its dominant position as the most widely used.

While Bitcoin is designed as an alternative to Fiat currencies, the purpose of Ether (besides being traded as an asset) is to be used as a means of payment for using the Ethereum platform. . This cryptocurrency is known as utility cryptocurrency.

🎯 Advantages and disadvantages of Ethereum

One of the main advantages of Ethereum is that it allows developers to create applications that are not controlled by any government or institution. These applications are called DApps. This makes it safer and less prone to manipulation.

Additionally, Ethereum has low transaction fees and is more efficient than Bitcoin. However, Ethereum also has some disadvantages. One of the main drawbacks is that it is still in its early stages and its future is still very uncertain.

In addition, Ethereum is more complex than Bitcoin, and therefore may be difficult for new users to understand. Finally, Ethereum is not widely accepted by merchants and can be difficult to transform into fiat currency.

🔰 Litecoin (LTC)

Litecoin, launched in 2011, was one of the first cryptocurrencies to follow in Bitcoin's footsteps. She has often been referred to as " bitcoin silver vs gold ". It was created by Charlie Lee, an MIT graduate and former Google engineer.

Litecoin is based on an open source global payment network that is not controlled by any central authority and uses " scrypt as proof of work, which can be decoded using mainstream processors.

Although Litecoin is similar to Bitcoin in many ways, it has a faster block generation rate and therefore offers faster transaction confirmation time. In addition to developers, an increasing number of merchants accept Litecoin.

As of September 2021, Litecoin had a market cap of $4 billion and value per token about 190 dollars. Making it the sixteenth largest cryptocurrency in the world.

🎯 Advantages and disadvantages of Litecoin

Litecoin is a version faster and more efficient bitcoin. One of the main advantages of Litecoin is that it allows faster transactions than Bitcoin. This makes it easier and more convenient to use. Additionally, Litecoin transaction fees are lower than those of Bitcoin.

However, Litecoin also has some disadvantages. One of the main drawbacks is that it is not as widely accepted as Bitcoin, it can therefore be difficult to find merchants who accept it.

Furthermore, Litecoin is still relatively new, so there is still a lot of uncertainty about its future. Finally, the Litecoin is not so safe than Bitcoin, so it is more vulnerable to attacks.

🔰 Cardano (ADA)

Cardano is a cryptocurrency Ouroboros proof of stake ". It was created with a research-based approach by engineers, mathematicians, and cryptography experts.

The project was co-founded by Charles Hoskinson, one of the original five founding members of Ethereum. After having some disagreements with the direction Ethereum was taking, he left and later helped create Cardano.

The team behind Cardano created their blockchain through extensive experimentation and peer-reviewed research. The researchers behind the project have written over 90 articles on blockchain technology on a wide range of topics. This research is the backbone of Cardano.

Due to this rigorous process, Cardano seems to stand out among its proof-of-stake peers as well as other major cryptocurrencies. Cardano has also been dubbed the “Ethereum killer”, because its blockchain would be capable of more.

That said, Cardano is still in its infancy. Although it beat Ethereum to the proof-of-stake consensus model, it still has a long way to go in terms of decentralized financial applications.

Cardano aims to be the global financial operating system by establishing decentralized financial products similar to Ethereum. Thus it provides solutions for channel interoperability, electoral fraud and the search for legal contracts, among others.

As of September 2021, Cardano had the third-largest market cap at $71 billion and an ADA is trades for around $2,50.

🔰 USD coin

The USD Coin is moving on the blockchain Ethereum. It is first and foremost a cryptocurrency, in the sense that it follows a decentralized exchange protocol. However, it is intended to be more transparent than the majority of its counterparts.

The UDS Coin is thus the stable token of Coinbase and Circle, which have joined forces to create the Center consortium, the basis of the project.

The goal of the USD Coin is to become a reference in terms of electronic payment, like PayPal. Limits that the USD Coin has for goal of going beyond to become an independent means of payment, which can be used in all transactions.

USDCs are mostly issued by financial institutions, which are licensed by regulators. To issue 1 USDC, the institution must guarantee that it has 1 dollar in reserve.

In addition, anyone with a bank account can issue this cryptocurrency provided that they are identified. Then simply pay the amount in dollars to an authorized issuer against the desired number of tokens, without any transaction fees.

🔰 Binance Coin (BNB)

Binance Coin is a utility cryptocurrency that functions as a means of payment for fees associated with trading on Binance Exchange. Those using the token as payment for the exchange can trade at a discount.

The Binance Coin blockchain is also the platform on which Binance's decentralized exchange operates. The Binance exchange was founded by Changpeng Zhao. This platform is one of the most used exchanges in the world in terms of trading volumes. 

Ripple is a payment network that is used for international payments. One of the main advantages of Ripple is that it is fast and efficient.

Transactions on the Ripple network are almost instantaneous, and there are no transaction fees. Additionally, Ripple is backed by major banks and financial institutions, which adds to its credibility.

However, Ripple also has some disadvantages. One of the main disadvantages is that it is centralized, which means that it is controlled by a central authority.

This makes him vulnerable to manipulation. Additionally, Ripple is not as widely accepted as Bitcoin, so it can be difficult to find merchants who accept it. Finally, Ripple is not as secure as Bitcoin, so it is more vulnerable to attacks.

🔰Ripple

Ripple is a payment network that is used for international payments. One of the main advantages of Ripple is that it is fast and efficient.

Transactions on the Ripple network are almost instantaneous, and there are no transaction fees. Additionally, Ripple is backed by major banks and financial institutions, which adds to its credibility.

However, Ripple also has some disadvantages. One of the main disadvantages is that it is centralized, which means that it is controlled by a central authority.

This makes him vulnerable to manipulation. Additionally, Ripple is not as widely accepted as Bitcoin, so it can be difficult to find merchants who accept it. Finally, Ripple is not as secure as Bitcoin, so it is more vulnerable to attacks.

🔰Dash

Dash is a cryptocurrency designed to make transactions faster and safer. One of Dash's main advantages is that transactions are faster than those of Bitcoin. This makes it easier and more convenient to use. Furthermore, the Dash transaction fees are lower to those of Bitcoin.

However, the Dash also has drawbacks. One of the main drawbacks is that it is not as widely accepted as Bitcoin, so it can be difficult to find merchants who accept it.

Also, the Dash is still relatively new, so its future is still very uncertain. Finally, Dash is not as secure as Bitcoin, so it is more vulnerable to attack.

🔰Zcash

Zcash is a cryptocurrency that is designed to provide users with greater privacy and anonymity. One of the main advantages of Zcash is that it is highly secure and private.

All transactions on the Zcash network are encrypted, making them almost impossible to trace. In addition, transaction fees are low and the Zcash is more efficient than Bitcoin.

However, Zcash also has some disadvantages. One of the main drawbacks is that it is not as widely accepted as Bitcoin, so it can be difficult to find merchants who accept it.

Also, Zcash is still relatively new, so its future is still very uncertain. Finally, Zcash is not as safe as Bitcoin, it is therefore more vulnerable to attacks.

🎯 Closing

In conclusion, investing strategically in cryptocurrencies can open up opportunities for you. high long-term return. Provided of course that diversify your investments, to adopt a strategy adapted to your profile and to always invest in a reasoned manner.

Favor cryptocurrencies with a real use case and an active community. Monitor your portfolio regularly and do not hesitate to take your profits during peaks to secure part of your stake.

Although significant potential remains in the years to come, never forget that cryptocurrencies remain a risky investment that should only be recommended for a small part of your portfolio. But if you apply good reflexes, you will undoubtedly live an exciting adventure!

So don't wait any longer to get started and take your first steps into the fascinating world of cryptocurrencies. And above all, keep a cool head in all circumstances to aim for the long term. Good luck with your investments! But before you leave, here are some Tips for succeeding in entrepreneurship