Invest in Bitcoin and Cryptocurrency: Reviews and Beginner’s Guide

How to invest in cryptocurrencies like Bitcoin or Ethereum? This tutorial is dedicated to people wishing to embark on investment in virtual currencies. Click here for bonusbitcoin.

 Understanding the blockchain

The blockchain appeared in 2008 with Bitcoin. This new technology offers the possibility of making the transfer of value online. Thus, Internet users can now send money through the Internet network independently, without third party intervention (banks) and securely. Visit this site for bonusbitcoin.

To understand the risks

The high volatility of the price of crypto-currencies often leads to strong fluctuations. If this can lead to big gains, it can also lead to heavy losses. It is therefore recommended to invest only a small part of its capital.

Some experts recommend that institutional (professional) investors invest only 2 to 5% of their capital in this new market. Bitcoin and other assets are also seen as a way to diversify investments because their prices are not correlated to any other asset at the moment.

The best advice is probably to invest a sum that you can afford to lose.

Define your investment strategy

There are 2 main strategies, firstly the long term investment:

The investors who buy currencies for a return on time.It is a matter of investing on one or more crypto-currencies of one’s choice to make a profit over several months or even years.

And the investment in the very short term:

The traders who practice pure trading,i.e. to tens or even hundreds of operations on the Crypto every day. This second strategy requires a lot more involvement and technique.

Favor crypto-currencies that bring novelty

It is important that the currency has utility and is not yet another copy of Bitcoin. For example, Ethereum is used to launch a cryptocurrency fundraiser called ICO.

However, we must also be wary of crypto-currencies promising mountains and wonders and proposing concepts drawn by the hair. Make the difference and stick to the facts and not the promises.