How to invest in cryptocurrencies in 2023
In recent years, the world of cryptocurrencies has captured the attention of both the media and the general public. For this reason, many people have a goal of investing in cryptocurrencies in 2022. However, there is much to learn before investing money in these alternative currencies.
If you want to buy cryptocurrencies but don't know how to get started, you've come to the right place! With this practical guide, you will be able to open the necessary accounts and store your digital assets safely. In addition, this article includes important facts about bitcoin and other cryptocurrencies that promise to be popular in 2022. With this information, you will be able to find the best investment opportunities, while taking care of your capital and learning more about new financial investment vehicles.
What is needed to invest in cryptocurrencies?
Before you buy your first cryptocurrency, remember that these currencies are a high-risk, volatile investment. The bitcoin historical price chart is a good example of the typical fluctuations of this cryptocurrency. It is important to take into account the possible ups and downs and only invest money that you can afford to lose should the currency unexpectedly drop in value.
Regardless of the type of cryptocurrency you want to purchase, it is important to do it the right way to ensure the safety of your investment. Remember that when you buy a decentralized currency, you are responsible for protecting your own investment. Therefore, before investing money in crypto , take the time to familiarize yourself with the legal framework and learn how cryptocurrencies work . This is essential, as investing in cryptocurrencies is different from traditional banking systems and investments.
The first thing you will need is an account with an exchange or an agent that processes the sale and purchase of your crypto . It is important to understand the differences between these two types of sites in order to open the account that is best for you.
Exchanges, also known as exchanges , are digital platforms where users can trade cryptocurrencies directly with each other at market prices. Some of the most popular exchanges to invest in cryptocurrencies in 2022 are:
When establishing an account with an exchange, the next step is to open the digital wallet where you will store your cryptocurrencies. There are several types of wallets with different levels of security and access. The storage method that is best for you will depend on how often you plan to buy and sell crypto .
An agent, or broker , also works as an intermediary. However, in this case, the broker is the one who determines the prices of cryptocurrencies. Sometimes brokers also limit transfers outside the platform and offer their own digital storage system.
What are the most profitable cryptocurrencies and with the best projection for the future to invest today?
The cryptocurrency market has grown a lot in recent years. Coinmarketcap , the most used cryptocurrency tracking site around the world, includes a list of more than 1,500 digital currencies. However, not all of these coins are a good investment.
With so many options, you may feel overwhelmed when deciding on a cryptocurrency. To find out which are the best forex options before investing in cryptocurrencies, it is recommended to read the opinions of the experts and analyze their performance in previous periods.
What were the best cryptocurrencies to invest in 2021?
Using historical data from Coinmarketcap, Infotechnology published its list of the fastest growing popular cryptocurrencies during 2021:
|
CRYPTOCURRENCY |
PROFIT PERCENTAGE 2021 |
|
Shiba Inu |
370,000% |
|
matic |
13,000% |
|
Solarium |
10,000% |
|
Moon |
10,000% |
|
Dogecoin |
3,000% |
|
BinanceCoin |
1,400% |
|
Cardano |
670% |
|
Ether |
502% |
|
Polkadot |
233% |
|
Bitcoin |
78% |
Where to invest in cryptocurrencies in 2022?
To help its readers learn more about the cryptocurrency market for 2022, Business Insider magazine interviewed various experts on the subject. Based on the performance of cryptocurrencies in 2021 and their market values, these specialists pointed out the following coins among the best digital assets for 2022:
- Bitcoin (BTC)
- Ethereum (ETH)
- Sunshine (SUN)
- Helium (HNT)
- The Graph (GRT)
- BinanceCoin (BNB)
- Moon Moon)
- XRP (XRP)
How to invest in cryptocurrencies safely?
Investments in cryptocurrencies carry a number of risks. From market instability to possible fraud, you must take certain precautions before making an investment of this type.
If you are interested in investing in cryptocurrencies, follow the recommendations of the Federal Trade Commission before making any decisions. The following questions can also help you decide which cryptocurrency is best for you as an investment:
- What use cases does the coin have?
- What is its total market value?
- What are your historical prices?
- How many coins are in circulation?
Some of the most common suggestions to protect your crypto and prevent theft of keys to your investments include:
- install an antivirus on your computer;
- check the security of your Internet connection;
- keep your passwords in writing in a safe;
- backup your data;
- use a dedicated email account for your cryptocurrency transactions;
- implement double authentication on all your accounts;
- distribute your digital assets across multiple storage systems; Y
- protect the security of your cell phone.
Legal requirements
Each exchange or digital wallet has its own legal requirements. Some of the platforms that maintain the anonymity of their users and do not require identification are:
Other platforms use the “Know Your Customer” (KYC) identification process. With this method, exchanges and brokers verify your identity and monitor your transactions in order to prevent money laundering.
Each platform operates differently. Some verification systems take minutes, while others require days. In general, the KYC system requirements include:
- photo identification (can be passport, driver's license or state ID);
- date of birth;
- social security number (SSN); Y
- home address.
How to invest in bitcoin?
Being the most established cryptocurrency and even the official currency of countries like El Salvador , many investors choose bitcoin to enter the world of digital assets.
The first step to investing in bitcoin is to open an account with a cryptocurrency exchange. Once the account is established, you will need to connect it to your preferred payment system. It should be noted that each exchange has its own rules about the payment methods they receive. Most accept dollars through credit or debit cards such as your PODERcard . There are some exchanges that only accept other digital currencies.
After you have connected your payment system, you are ready to make your first bitcoin purchase. Simply decide how many coins or fractions of coins you want to purchase and place the order.
When you have made the purchase, you must decide which electronic wallet you will use to store the private key of your cryptocurrencies. For greater security, remember to protect your passwords and use double verification systems.
What are bitcoins?
Bitcoin is the most popular digital currency in the world. It was created in 2008 by a person or group known by the pseudonym Satoshi Nakamoto .
The popularity of bitcoin is due to the decentralized verification system called the blockchain . With this system, all bitcoin users verify transactions and maintain the anonymity of other users. Since there is a very limited amount of bitcoin, the value of the cryptocurrency lies in the supply and demand for it.
Today, there are other alternative currencies that compete with bitcoin. Each of these coins operates within its own network, with its own blockchain .
How to buy bitcoins in the US?
Each country has its own rules for buying and selling cryptocurrencies. In the United States, trading in virtual currencies is allowed. However, sources such as Criptonoticias report that the regulatory bodies of this country announced a series of guidelines that will be launched in 2022.
Among these new measures, the Office of the Comptroller of the Currency (OCC) requires financial institutions to apply for permission to hold crypto . New supervisory systems also promise to pay more attention to cryptocurrency capital and liquidity standards, as do KYC identity verification systems.
How much is the minimum to invest in cryptocurrencies?
There is no minimum amount to invest in cryptocurrencies. However, some exchanges like Binance have a minimum transaction of $10. Other platforms, such as Coinbase, offer an even lower minimum of $2.
It is worth mentioning that, in addition to the cost of the investment, the exchanges charge fees for each transaction. Normally, all transactions, including purchases, sales and transfers, will include some type of fee.
What should I take into consideration?
When investing in bitcoin or other cryptocurrencies, you should take several factors into account. Some of them are:
- the volatility of these investments;
- your own risk tolerance;
- your financial goals; Y
- how long you want to hold the cryptocurrencies.
If you want to diversify your portfolio with digital currencies without having to buy cryptocurrencies, you can consider alternatives such as:
- exchange-traded funds (EFTs);
- contracts for difference (CFDs);
- Futures; Y
- non-fungible tokens (NFTs).
Advantages of investing in virtual currencies
For some investors, virtual currencies offer unique advantages and a real alternative to traditional currencies. These are some of the benefits they point out:
- Decentralization: As they are not associated with any government or financial institution, cryptocurrencies are international currencies that offer their users independence from the traditional system.
- Anonymity: Transactions on the blockchain are anonymous and confidentially verified.
- Speed: As it happens online, the verification process is more efficient than traditional banking transactions.
- Inflation prevention: Each cryptocurrency network has its own system to prevent inflation. With a predetermined number of coins, it is impossible for the market to be flooded, which ensures that its value will not be diluted.
Risks of investing in virtual currencies
Just as there are benefits, there are also downsides to trading virtual currencies. Before investing in cryptocurrencies, it is important to know these drawbacks:
- Instability: Cryptocurrencies are high-risk investments whose value fluctuates to a greater extent than traditional assets. This exposes investors to the possibility of large losses quickly.
- Little regulation: Being such a new investment method, there are still many inconsistencies in cryptocurrencies, exchanges and agents.
- Lack of protection: Cryptocurrencies are not associated with any government or company. This means that your investments do not have the same protections that exist when you trade with financial institutions or traditional investment vehicles.
- Exposure to scams: Cryptocurrency payments are irreversible. If you are a victim of fraud or theft of your passwords, you can lose all your capital and there is no way to recover it.
Before investing in any cryptocurrency, take the time to research the digital currencies available and the storage methods that are best for you. To protect your investment, it is important to take the necessary security measures and diversify your portfolio.
As with other risky investments, cryptocurrencies come with a lot of volatility. Be cautious and avoid investing more than you are willing to lose. Remember that the key to generating returns on your investments and achieving financial success is educating yourself on the subject. For this reason, the SABEResPODER team has set itself the goal of informing you about the trends in the world of cryptocurrencies, so we recommend that you keep an eye on our blog.
Leave a Reply