Cryptos are the hottest topic in today’s financial and investment landscapes. Started as an underground subject in tech-savvy forums at the beginning of the past decade, but now is one of the most mainstream topics when talking about the future of the Internet.
Nevertheless, it remains an abstract matter for many people and you might find yourself lost when trying to understand the technology behind cryptos or how to buy them.
In the following article, you’ll find basic recommendations to consider when entering the world of cryptos. Hopefully, you can incorporate some of these practices, but remember that learning about crypto investment is a continuous process. The popularity of these financial assets is growing at such a fast pace, that it evolves permanently and what’s true today can be different tomorrow. Keep yourself informed!
Have a reason why to invest in cryptos
When investing in cryptocurrencies, you should first ask yourself the question of why you want to do this.
It might be because you believe in a decentralized financial system, that you have doubts about traditional banking, or even that your values are more aligned to the social objectives behind a certain digital coin. It’s also completely valid to invest in cryptos because of your interest in middle and long-term returns and because you want to use them strictly as a financial instrument for profit.
The important is that you don’t invest only because cryptos are trendy. The fear of missing out shouldn’t be your driving force as it can lead to erroneous investments.
Do your research on the crypto you wish to buy
There’s a popular expression in the cryptocurrency world that says: Do your own research or DYOR.
This means that you shouldn’t act based solely on external advice, but to implicate yourself in learning about your possible investments.
Once you decide the reason why you wish to invest in cryptos, then you can start looking for the one digital currency that fits your needs.
Take the example of Bitcoin, the most popular of cryptocurrencies and the one with the highest valuation in comparison to the dollar. It’s the best digital asset in terms of daily usability as it has become largely accepted by many outlets and stores. It has even reached official financial regulation in a country like El Salvador where you can find bitcoin ATMs in cities.
Other industries have embraced bitcoin as an accepted means of payment. In the USA people can find online casinos that accept Bitcoin as a payment method, and even more, platforms that offer guides and reviews on casinos where you can gamble with Bitcoin. These sites offer the best standards in terms of security and cashback guarantee, which indicates how far Bitcoin has come in a few years.
Read the crypto “whitepaper”
The whitepaper of any cryptocurrency is one of the best indicators of the quality of the digital asset. In it, you’ll find all the technical specifications of the currency and more importantly, the utility behind it.
If the whitepaper isn’t clear, then this is already a sign that perhaps the team behind the cryptocurrency is just there for the initial profits.
Many cryptocurrencies look to solve a problem, such as online privacy, or common issues such as the recycling of plastic. Others might grant you voting rights or give you equity on a project by the means of granting tokens to investors.
Companies like EthicHub for example have developed cryptocurrencies and tokens that allow users to participate in the production chain of coffee, by helping farmers from all over to develop and invest in their businesses.
Where can I buy cryptos?
The platforms where you can buy cryptos are called Exchanges. Among the most popular, you can find Binance or Crypto.com. But there are many options for you to choose from. Most of them have very nice dashboards where you can also follow the trends of any listed crypto and start analyzing your next investment.
It’s a simple as registering an account, verifying your identity for security reasons, and then you can buy cryptos with a credit card or other payment methods that the platforms offer.
