The rise in Bitcoin in recent months has led many people to consider investing in cryptocurrencies.
Is it worth investing your savings in bitcoins? See expert tips and alerts.
Understand the market
The first step is to understand how the cryptocurrency market works. In practice, bitcoin is a computer-generated asset.
The main feature is to be decentralized. That is, there is no government that centralizes and a Central Bank to regulate.
The technology behind cryptocurrency is blockchain, a large database that records every transaction made in the world. According to experts, it is supported by large computer networks and the encrypted environment ensures system security.
Don’t bet only on high
The price of bitcoin has a very wide variation, meaning that the currency may rise 10% today and fall 15% tomorrow, for example. Therefore, it is not a recommended investment for those who do not like to take too much risk, as with shares traded on the stock exchange.
It is a mistake to think that the price will always increase. This bullish momentum has created a kind of risk, a herd effect that makes it risky to invest. Better be cautious.
Start small and assess risks
For starters, the recommendation is to start with little money. You can buy fractions of bitcoin from $10. Also, you need to know the risks of the investment. For example:
- There is the possibility of wallet theft with virtual money and hacker attack;
- The transaction cost may be higher than other investments (there are rates that vary according to exchanges, a kind of bitcoin broker).
Where to buy and how to store?
You need to look for a global equity crypto platform such as Firmdrex, an institution that trades bitcoin for individuals. They are similar to exchange offices. In addition to selling, they also store virtual money.