How to invest in cryptocurrency for beginners and experienced investors: TOP 3 ways

In fact, there are only two ways to invest:

market speculation;
mining.
We will decide immediately: if you are a beginner, it will not be easy to figure out both the first and the second methods. But over time, it will become completely clear how to invest in cryptocurrency for beginners.

The third highlighted method is an “indirect” investment in cryptocurrency, since the investor has no interaction with it as such, but provides an opportunity for third parties to work with it “directly”. Find out how to invest in cryptocurrency on the Ava Trade forum.

Method number 1. Exchange speculation! Where to start, how to act, what income can be obtained?

The very scheme of investing in cryptocurrency through a purchase on the exchange is not as difficult to understand as it seems. In practice, an investment in cryptocurrency looks like this:

Choose an exchange.
Choose an asset.
Buy cryptocurrency.
Sell ​​currency at a better rate.
You can sell everything at once. You can wait until a year passes and the price of the asset will increase several times. It all depends on whether you are focused on long-term or short-term investments in cryptocurrency.

Step 1: Choosing Exchanges

To begin with, all truly worthy exchanges are geared towards an English-speaking user. There are intermediary exchanges that offer to buy cryptocurrency on their Russian-language sites. For this, of course, you will have to give a percentage of each transaction. And the quality of the services provided, as a rule, is much lower than on the original sites. Do not forget about this when you need to find out how to invest in cryptocurrency for beginners. Therefore, ideally, of course, it is better to work immediately on well-known foreign exchanges with a good reputation without any intermediaries.

Step 2. Asset selection

Analyze the “behavior” in the market of each cryptocurrency, read the analytics and forecasts, and only then make a purchase. If you are taking the first steps, you can try with cheaper currencies to understand the principle of trading on the exchange. Investing in Bitcoin - the most expensive cryptocurrency today - is simply pointless. Check out the article “The Most Promising Cryptocurrencies for Earnings” to find out what other types of electronic money exist. The first step in studying the question of how to invest in cryptocurrency - to learn how to feel the market and make independent forecasts - you can start investing "big" in bitcoins or try to take risks with new cryptocurrencies that are promising.

Step 2. Asset selection

Analyze the “behavior” in the market of each cryptocurrency, read the analytics and forecasts, and only then make a purchase. If you are taking the first steps, you can try with cheaper currencies to understand the principle of trading on the exchange. Investing in Bitcoin - the most expensive cryptocurrency today - is simply pointless. Check out the article “The Most Promising Cryptocurrencies for Earnings” to find out what other types of electronic money exist. The first step in studying the question of how to invest in cryptocurrency - to learn how to feel the market and make independent forecasts - you can start investing "big" in bitcoins or try to take risks with new cryptocurrencies that are promising.

Step 3. Buying an asset

You can replenish your account on the exchange using electronic payment systems or with a bank card. For more information about registering and choosing a place to store currency, see the article “The best cryptocurrency wallet, how to choose?” To trade without any hitches, it’s better to get a few wallets.

Attention! Some exchanges accept exclusively “ready-made” cryptocurrencies to replenish their wallets, that is, they cannot be replenished through webmoney. This, for example, is about Poloniex.

When the money is credited, you specify in the search the number of cryptocurrency that you need, and look for the suitable option in the results. Having selected it, send a request to the trader. When he confirms it, a transaction will occur.

Step 4. Selling an asset at a favorable rate

After the transaction, your wallet on the exchange will be replenished with the cryptocurrency that you bought. Further, you can continue to study the question of how to invest in cryptocurrency for beginners, or act in two ways:

Leave it on the exchange, and then later sell it as soon as you find a profitable offer.
Withdraw it to your own secure wallet.
The first option is convenient only if you are making short-term investments in cryptocurrency and are going to sell it soon. It is not recommended to store electronic money constantly on exchanges, as they are often subjected to hacker attacks. And then, they are also not safe from the risk of bankruptcy, therefore it is better not to trust your savings to intermediaries.

Step 4. Selling an asset at a favorable rate

After the transaction, your wallet on the exchange will be replenished with the cryptocurrency that you bought. Further, you can continue to study the question of how to invest in cryptocurrency for beginners, or act in two ways:

Leave it on the exchange, and then later sell it as soon as you find a profitable offer.
Withdraw it to your own secure wallet.
The first option is convenient only if you are making short-term investments in cryptocurrency and are going to sell it soon. It is not recommended to store electronic money constantly on exchanges, as they are often subjected to hacker attacks. And then, they are also not safe from the risk of bankruptcy, therefore it is better not to trust your savings to intermediaries.

Your income level will depend on how much you are willing to invest and which trading strategy you choose. In the best case scenario, investments in cryptocurrency bring up to 30% per month.

By the way, if you decide to figure out how to invest in cryptocurrency correctly, then know that it is not even necessary to immediately sell it. The longer you keep it in your wallet - the more it will grow in value. Time will work for you without any effort on your part. Then it will be possible to simply transfer cryptocurrency into regular money, having received several times more than they invested. And you can not translate at all, but pay with it for various operations. Already now it is accepted by many shop windows, shops, auctions, etc., and in a few years it will probably be freely converted in everyday life. Wait and see…

Method number 2. We are engaged in mining - we open our own "farm"

Mining is the “mining” of cryptocurrency. You will receive it for infrastructure maintenance, that is, in the literal sense, to produce a new currency by performing certain mathematical calculations. The difficulty is that the miner needs to guess one hash from millions of combinations, which hundreds of his colleagues can try to do at the same time. In addition, the number of miners increases every year, so the mining procedure is complicated, and the reward is reduced. Full information about mining is contained in the article “What is mining in simple words?”, It will be useful to familiarize yourself with it.

Mining bitcoins on a regular PC will fail. And this is another fact that should be taken into account in order to understand how to properly invest in cryptocurrency. We need special farms with high capacities, minimal energy consumption, connected to electricity and the Internet around the clock. To create such a farm at home, you will have to purchase equipment for 2-3 thousand dollars. Since the amount is serious, some miners are combined into groups, work together, and then "divide" the income received equally.

Method number 3. Cloud mining as a form of mediation

The meaning of cloud mining is to provide rental capacities for cryptocurrency mining. That is, the investor in this case directs direct investments in power, and not in bitcoins. It works indirectly with cryptocurrency, but nevertheless, it is precisely it that is the ultimate goal for miners who use its services.

So is it worth the risk or not?

Investing in cryptocurrency is undoubtedly a risk. Therefore, first you need to figure out how to invest in cryptocurrency correctly. However, any investor activity is a risk. Do not want to take risks? So, the profession of investor and big money is not for you. Today, the stage of cryptocurrency formation in the world can be compared with infancy. A lot of time will pass before it starts to decline. So today it’s too late to figure out how to invest in cryptocurrency. If you join this stream now, you have every chance of getting a high profit from cryptocurrency.

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