How to invest in cryptocurrency? Our practical tips for beginners

Affiliate Content

Investing in cryptocurrencies can seem complicated. Do you have to actively trade to hope to make money? Not necessary. Even a beginner needs only a few minutes to buy it. If you are new to the world of cryptocurrencies, choose a secure trading platform and create an account. We explain the basic knowledge you need to have Cryptocurrency investing can seem complicated. Do you have to actively trade to hope to make money? Not necessary. Even a beginner needs only a few minutes to buy it. If you are new to the world of cryptocurrencies, choose a secure trading platform and create an account. We explain to you a few basic knowledge that you need to have.

accepts

How to invest in cryptocurrency?  Our practical tips for beginners
©Lightbeat

Invest for the long term

When you are a beginner, long-term investing is the easiest way to get started. Just buy a cryptocurrency like bitcoin or dogecoin, and store them in a wallet, that is, a virtual wallet. It is a bit like a safe that can store and protect crypto assets. A long-term investment strategy is also referred to as “holding” in the jargon of the cryptocurrency and stock communities. Thus, we are betting that the value of the cryptocurrency will increase. If so, it’s up to you when you want to make a profit. Some investors are content with a 25% return on their resale capital, while others prefer to wait until their investment doubles (+100%). This “long-term” strategy requires a small number of transactions and does not require regular activity in the cryptocurrency market.

How to invest in cryptocurrency?  Our practical tips for beginners
©Lightbeat

How can I transfer my profit?

Are you aware of capital gains? On the day you want to return all or part of your cryptocurrencies in euros to your checking account, you will simply need to do the reverse movement, i.e. convert the amount of BTC of your choice into euros through the sale procedure and then transfer these euros to your checking account via SEPA (Single Euro Payments Area) transfer. It is a single euro payment area that allows secure standard or instant transfers and direct debits between countries in the SEPA area.

Trade more actively

Trading consists of betting on price movement up or down through an online broker. This is a “short-term” strategy. Many crypto traders practice intraday trading by executing one or more market orders per day. However, it takes a lot of practice to become a profitable trader. Without real skills or understanding of the market, it is too difficult to master trading. If the potential profit increases tenfold due to the effect of leverage, the risks of loss are just as great. Therefore, proper training is highly recommended. improvise intraday trader it is a bad idea.

As you have already understood, while traders use the daily price volatility for immediate profits, investors, which most likely applies to you, are more interested in the long-term performance of cryptocurrencies. More and more crypto platforms are appearing on the market. Also make sure that the site offering you investments in crypto assets is legal. Also, dare to use cryptocurrencies lesser known than bitcoin, such as ripples.

Editor’s note: Cryptocurrency is subject to extremely high volatility. It is not regulated, which makes it a risky investment. Investing money also costs money. Any profits made in cryptocurrencies must be declared.

Promotional content that is not editorially binding