Trading and investing in cryptocurrency. The best cryptocurrencies for investment: rating of cryptocurrencies

Cryptocurrencies appeared less than ten years ago, but in such a frankly short period of time they were able to become the main contenders for an alternative to the standard financial system. If you want to be one of the lucky ones who will benefit from the hype around digital coins, you need to consider how to invest in cryptocurrencies now.

Only the lazy don’t invest in crypto money. People have already realized how promising this industry looks in terms of benefits. But you can invest money not in the coin itself, but, for example, in its mining. Moreover, the return on such an investment will be no less high. Although first of all we need to figure out where to start in order to get a decent reward.

In order to invest in cryptocurrency, you need to transfer this procedure from the category of science fiction to the category of a promising source of income. To do this, you need to develop a step-by-step plan for how you intend to invest in cryptocurrency and what benefits you want to get from it. The main thing is not to flap your ears. While some are wondering where to invest, others are already actively investing and making money from it.

Is it profitable to invest in cryptocurrency?

Today the question of whether it is worth investing in cryptocurrencies is not even discussed. If this were not so, we would not even start writing this. But there are nuances, so let’s look at the facts that make investing in cryptocurrencies so profitable.

The main thing in investing is to move towards your goal step by step. If you build a strategy correctly, then making a profit will only be a matter of time.

Types of investment

If you decide to invest in cryptocurrencies in 2018, you need to decide what type of investment to invest in. Even the investment amount is calculated based on this fact.

So, let's look at a small list of types of cryptocurrency investments:

To buy coins for a long time

The easiest way to invest in cryptocurrencies is to make a long-term investment. Buying cryptocurrency for a long period of time is rightfully considered the safest method of making a profit. All an investor needs to do is wait for the coin’s rate to rise. This strategy is usually called Buy&Hold. Translated from English it means “buy and hold.”

In principle, it is difficult to come up with a more relevant description of such an investment strategy. To make a profit, it is enough to purchase one or several promising coins and wait for their rate to rise. And this investment is safe because nothing else is required from the user. Just invest money for the future, without making any unnecessary movements.

The scheme of this strategy can most clearly be described point by point:

The good thing about the Buy&Hold strategy is that investors who invested rubles in 2018 can already make a profit of 1000% or even more in 2019. This is especially true for top currencies, which are rising in price at a rapid pace. Judge for yourself - just a year ago Bitcoin was barely selling for a thousand dollars, but by the end of 2017 it could be sold for 17-18 thousand dollars. Taking this into account, the optimal investment period is about 1-2 years. And don't panic if the price changes against you. This is a natural phenomenon for cryptocurrencies.

Into mining

Not everyone can afford to invest in mining. If we talk about coins such as Bitcoin or Litecoin, then the amounts for purchasing equipment are six figures. Naturally, only large investors can afford such investments.

But there is an alternative - buying ASIC devices or creating farms to direct their power to work in a pool. Perhaps this strategy is still viable. However, consider the energy consumption of such equipment. Because of this, the profit from mining blocks may remain very conditional, or even go into the negative. Then there won’t even be any talk about the return on such an investment.

In addition, the difficulty of mining is constantly increasing, and therefore the miner will have to constantly invest more and more money to keep up with the current state of affairs.

So, let's calculate how much a typical farm can generate for, say, ZEC. To do this you need to take the following data:

• The farm costs around $1,500 (if you assemble a simple configuration, you can invest $1,000);
• The cryptocurrency rate is currently $260, although on average it stays in the range of $200-300;
• Per month, the farm operates 24/7/31 and produces 0.14-0.15 ZEC;
• The performance of a crypto farm of 2 cards is 450 Sol;
• Electricity payment is within 20 dollars per month.

We draw conclusions whether it is profitable to invest money in a mining farm. Calculations show that at the current rate of $260, the profit per month will be about $40. Minus the electricity costs, and you're left with $20. As a result, a farm that costs $1,000 will pay for itself only after 50 months.

Of course, the rate may rise, as it did in the winter of 2017–2018. Then the cost of one coin was more than $700. But the most effective way is to invest more money and make a more powerful farm. Then its payback will increase, which means the investment will be more successful.

To cloud mining

Nowadays, investing in cloud cryptocurrency mining is much more popular than classic coin mining. And you don't even need to explain why. After all, all the costs of maintaining the farm of miners do not apply. This is simplified mining, freeing the person who invested in it from paying electricity bills, round-the-clock monitoring, setting up software, etc.

But cloud mining has a lot in common with classic earnings. For example, it also occurs due to computing power. But you only pay for it and give a small percentage for maintenance. And the data centers themselves with powerful equipment may be located in another corner of the world.

Advantages of cloud mining:

• Relatively high profitability. Many services provide income from investments in the amount of 200% to 400% per annum. Considering the rise in the price of cryptocurrency, the prospects are very good;
• The companies have official status, because their services are of high quality, and the purchased tariffs are carried out on the same conditions as originally stated;
• Profits from cloud mining can be predicted quite effectively. Since indicators of average network and course complexity are used;
• On one service you can purchase mining contracts for several popular cryptocurrencies. This allows you to protect yourself if some investment is in jeopardy due to a drop in the coin exchange rate;
• Possibility of automining;
• Beneficial referral programs, according to which investors can also receive additional income.

But before investing money in cloud cryptocurrency mining, you should also remember the risks.

• There is a possibility that the price of the coin you invested in will fall;
• The seller of contracts may be unscrupulous;
• The site will be subject to a hacker attack;
• There will be a sharp increase in the difficulty of mining the selected cryptocurrency.

In general, you need to properly weigh all the risks and prospects before investing big money.

In the creation of new blockchain projects

Perhaps ICOs can be called the most complex investment instruments. If you look at the results of last year, projects conducting ICOs raised more than three billion dollars. And in 2018, the prospects for the development of new projects are even better.

Investments in this industry have become so popular due to the availability of such projects. It only takes a few dollars to become an investor. But the wide availability of ICOs is also their main problem. Because of this, it is easy to come across frankly crude projects or even fraudulent schemes on the market. As a result, we have disappointing statistics, due to which the vast majority of projects will disappear after some time.

Therefore, investing in ICO is an extremely dangerous activity. Especially if the founders of the startup are not able to confirm the functionality of the product. Investors can only rely on public information presented on the project website. But no one gives guarantees that this information is true.

Although a successful choice of project does not guarantee its high profitability. ICOs are often overvalued. That is why the value of cryptocurrency rapidly goes down immediately after its entry onto the stock exchange.

But we cannot ignore the fact that ICOs have a number of important advantages:

Investing a large amount in an ICO cryptocurrency is not safe. Therefore, before doing this, pay attention to studying the project team. The more experienced they are, the more serious the project.

Best cryptocurrencies to invest in

Now let’s look at which cryptocurrencies to invest in in 2018. The top is formed on the basis.

Bitcoin

When people think about which cryptocurrency is best to invest in, Bitcoin comes to mind first. This cryptocurrency appeared first and became the beginning of a new financial industry. At the moment, the Bitcoin cryptocurrency is the most valuable investment, even though it has been around for almost a decade.

Bitcoins are secure, mobile and popular. Over the past year, the price of this crypto coin has increased significantly. And the technology is actively developing. Not least because many companies have started working on the blockchain. It was the Bitcoin blockchain that caused such rapid growth.

Looking at cryptocurrencies, $141 billion is almost three times higher than its closest competitor. However, not all of the possible 21 million coins have yet been issued.

The price of the cryptocurrency is currently $8 thousand. This is not her best indicator. Back in January 2018, the cost of Bitcoin reached almost 20 thousand dollars. That is, there is a growth trend, we just have to wait for the right moment.

Ethereum

The second largest coin by capitalization is Ethereum. The brainchild of Vitalik Buterin, powered by the Ethash algorithm. It was created in 2015 under the code name “Bitcoin 2.0”.

The peculiarity of Ethereum is that new ICO projects can be created on its basis. This is possible thanks to smart contracts. This technology has become a breakthrough in the field of cryptocurrencies. Thanks to her, Ethereum has become much more technologically advanced and promising than Bitcoin. Therefore, if you have a desire to invest in crypto and choose which one, you should opt for Ethereum. Transactions are confirmed very quickly. Smart contracts are like arbitration. But no commission is needed.

Ethereum (ETH) is not the platform itself, but its currency. If you want to take advantage of the system, you need to invest in cryptocurrency. In any case, you will not lose, since the technology of its use is one of the most promising in the world. To begin with, many giant companies such as Microsoft, Sberbank, Jp Morgan cooperate with Ethereum. And its developer Vitaly Buterin met with the President of the Russian Federation. During their meeting, the prospects for the project were discussed.

Today, Ethereum's capitalization is $56 billion, although many experts argue that in 2018 it could even surpass Bitcoin. But judging by the price of the altcoin, which is $570, the rate is far from what Bitcoin offers. But it's not bad for investing. Anyone can buy a few coins.

Litecoin

Litecoin is one of the first forks of Bitcoin. In turn, this is the second full-fledged cryptocurrency to appear in the world. It was created in 2011, and since then it has been occupying leading positions in the ratings.

This coin works on the Scrypt algorithm. In addition, it has many improvements compared to its parent. Let's look at them in more detail:

But Litecoin is still not ready to become a mass cryptocurrency. It is much more effective to use it for investing and speculation.

Eos

The Eos project hasn’t even really launched yet, and it’s already gathering a lot of gossip and speculation. Nevertheless, this cryptocurrency is in almost all ratings of promising tokens, which means you can invest in it.

But calling a coin good is not everything. Let's take a closer look at what the prospects for this project are based on:

Bitcoin Cash

This coin appeared as a result of an unexpected fork of Bitcoin that occurred on August 1, 2017. His very appearance caused a lot of controversy. For example, people argued that this fork was not needed at all. Although, as further developments showed, the new coin still solved some pressing problems associated with Bitcoin.

In particular, the code has been improved, making the fork more accessible to the public. It can be used en masse, which the Bitcoin network could not afford. You can invest in the coin in question due to the following features of Bitcoin Cash:

• Immediately after the launch of trading on exchanges, the new cryptocurrency was in third place in terms of capitalization. Now the coin is in fourth place with a capitalization of more than $16 billion;
• The BCC cryptocurrency rate reaches approximately a thousand dollars. Experts say the price will rise. But at the same time, the rate reached four thousand dollars, and now it has fallen;
• All leading cryptocurrency exchanges immediately included this coin in their list. This also adds Bitcoin Cash to its popularity as an investment asset.

In addition, do not forget about the connection with Bitcoin, because everything related to this cryptocurrency is becoming more expensive right before our eyes. Although it is still better to refrain from large investments.

Ripple

Ripple is one of the oldest cryptocurrencies. It officially entered the market in 2012 as an alternative to the banking system. Ripple does not exclude the old financial system, but adapts it to new circumstances. Mining or other types of extraction of this coin are not provided - the entire volume of tokens was released at once. This raised Ripple’s capitalization to unprecedented heights.

And after large banks became interested in Ripple, its popularity began to grow rapidly. The rate increased from $1 to $3.5 in just a week. But today the coin is worth even less - only 80 cents. This means it's time to invest while prices are so affordable. After all, the more banks introduce this technology into their work, the more expensive the coin will be. Then it will be too late to invest in it. The size of the investment will increase significantly and the deal will no longer be so profitable.

Some crypto enthusiasts say that the Ripple payment system has a chance to be an alternative to SWIFT. Already, such large global banks as BBVA, Mizuho, ​​Mitsubishi UFJ, UniCredit, UBS and Santander are working with this system. And among the most famous investors are Accenture, Andreessen Horowitz, Google Ventures and Seagate.

Neo

NEO did not immediately receive this name. Previously, this cryptocurrency was called Antshares, although its alternative name “Chinese Ethereum” still circulates on the network.

• Chinese startupers have done their best and created a very interesting project that is constantly updated and improved. In particular, the blockchain nodes were upgraded, technical documentation was updated, and even the stock ticker was changed. Well, one of the latest achievements is the successful transition to the NEO 2.0 smart contract system;
• Market capitalization figures are constantly changing. The coin once occupied 7th position in the ranking, but now it is 10th. However, such jumps are normal for this cryptocurrency. Currently the capitalization is $4.7 billion. At the same time, the total number of tokens is limited to one hundred million, but only half are in circulation.

But the project is being actively developed. This has already yielded results through cooperation with well-known startups. The largest of them are Bancor, Coindash and Agrello. But the most interesting is the Chinese startup Red Pulse. It will be created on NEO 2.0 smart contracts. Well, another interesting development is the Elastos operating system.

How to invest money in tokens correctly

When considering how to properly invest money in cryptocurrencies, you need to find out the specifics of investing in the cryptographic industry. Proper investing includes several factors:

1. Selected cryptocurrencies. There are hundreds of tokens that could attract the attention of investors. Making the right choice under such circumstances is very difficult. That is why we have given a list of the most reliable coins above. Investing in them is an almost 100% guarantee of profit.
2. Potential. Coins appear quickly, but some projects disappear just as quickly. To invest money, you need to choose a cryptocurrency that will last more than one month.
3. Income. When choosing where to invest in cryptocurrency, investors are interested in the money they can get from it. It is important to choose coins whose rate is currently rising, not falling.
4. Possibilities. Simply put, this is the initial capital. People have different financial capabilities, and investments should be made taking into account your real income.

The main thing is not to spend more than you can afford.

Risks of investing in cryptocurrency

The risks associated with investments in cryptocurrencies are more relevant than ever, because no one can guarantee the effectiveness of these investments or compensate for losses.

Let's take a closer look at the main risks:

• Possibility of theft. Hackers don't sleep. They regularly hack exchanges, pools and cryptocurrency wallets. Even if you have the most secure wallet, there is always a risk that your money could be stolen;
• Ambiguous attitude towards cryptocurrencies on the part of official authorities. Digital coins have received official status only in a few countries. In most countries, the status of tokens is uncertain;
• High volatility. For cryptocurrencies, pumps and dumps are a common occurrence. Speculators deliberately raise and lower the price of popular cryptocurrencies. This is how they make money, and ordinary investors lose their investments;
• The risk of losing money ahead of time. Cryptocurrencies do not have an official exchange rate. Coins rise and fall regularly. And sometimes the jumps are so sharp that investors dump coins for fear of losing profits. Therefore, there is no need to panic. To make a profit, sometimes you just need to be patient.

Interest in cryptocurrency has grown significantly over the past few years. At the beginning of 2017, there was a real boom around this digital asset. Therefore, investments in cryptocurrency began to attract ordinary users who previously knew nothing about it. Together with ProfitGuide, we will look at this digital asset from different angles to understand whether it is worth investing in it in 2017.

Before you invest money in any instrument, you need to at least understand what it is. Cryptocurrency is an electronic monetary unit that is not tied to a bank or state. The system develops independently, so coins are issued without internal or external control. If you have a powerful computer, you too can join the network and start mining cryptographic currency.

The mining process is very complex because it involves finding new algorithms. This explains the authenticity of the new coins. Gradually, the reward for creating a new block decreases, so the production of new coins is significantly reduced. However, mining will be relevant not only throughout 2017, but also until the end of this century, since the rates of cryptographic currencies have increased significantly.

Most cryptocurrencies (Bitcoin and Litecoin) have a limited supply, but there are options with unlimited mining. Which instrument is best to choose for investing in 2017?

Types of cryptocurrencies: the most promising for mining and investing

There are a huge number of different cryptocurrencies, but not all of them are suitable for investment. ProfitGuide has pre-selected the most promising cryptographic currencies. Together with us, you can understand whether it is worth investing in cryptocurrency in 2017. Let's first look at the most common coins individually, and then compare how much they have grown over the past year.

Bitcoin

The most popular digital currency is Bitcoin. You've probably heard about him at least briefly in the media. It attracts the attention of not only private investors, but also government officials, economists and financiers. So far this is the most famous and popular electronic currency. It was she who served as an example for creating analogues.

Bitcoin appeared back in 2009. If at first no one took this digital currency seriously, today tens of thousands of people want to invest in it.

Ethereum

Ether is in 2nd place in popularity among cryptographic currencies. It appeared in 2015, but quickly gained popularity. Some consider it so far the only worthy replacement for Bitcoin.

The main problem with many cryptocurrencies is that they are partially dependent on Bitcoin. That is, in order to withdraw money, you must first exchange for BTC, and only then convert the digital currency into dollars. Ether does not have this drawback. On many exchanges it can be immediately exchanged for dollars, which also had a positive effect on the demand for this currency.

Another important advantage is the unlimited number of coins. Thus, Ether mining may remain in demand for a very long time.

Litecoin

Following them is Litecoin. So far, the cost of the coin is noticeably lower than that of Bitcoin or Ethereum. But this is at the same time an advantage, since the investor will be required to make much smaller investments.

The trading volume of this cryptocurrency has recently grown and already amounts to hundreds of thousands of dollars. If this continues, the rate will continue to rise. Therefore, Litecoin is great for investing in cryptocurrency in 2017.

Monero

If you are looking for the most secure system that will provide anonymity not only outside of it, but also inside, then Monero is definitely worth paying attention to. When developing this system, privacy was put first.

Amid the surge in popularity around cryptocurrencies, many investors also began to pay attention to Monero. In terms of capitalization, it is in the TOP 10. It is worth noting that the issue of coins is unlimited.

Dash

This currency also showed rapid growth. Experts attribute the increased popularity of Dash to the release of the Sential update. After this, the level of security increased significantly. The update also had a positive effect on work speed.

Currently, the Dash cryptocurrency is in 7th place in terms of capitalization. She definitely won’t leave the TOP 10 anytime soon.

Ripple

Ripple appeared in 2012. This system had a predecessor called Ripplepay, which has been in operation since 2004. After 2011, developers began creating a digital currency system. Ripple has an important difference from Bitcoin, which is that the authenticity of the currency is confirmed by the consensus of participants.

Currently, Ripple is in 3rd place in terms of capitalization among cryptocurrencies. Users prefer this system due to its fast operation.

There are more than 870 cryptocurrencies in the world.

Ways to Invest in Cryptocurrency in 2017

Based on the table above, it can be seen that cryptocurrency rates on the market have increased significantly. It is quite difficult to find such fluctuations among other financial instruments. Both positive and negative sides emerge from this. Since cryptocurrency has significantly more advantages, this makes investing an unusually profitable activity, in particular for novice investors.

Buying and selling cryptocurrency: speculation on the exchange rate as an investment

Looking at the difference in rates, the first thing that comes to mind is speculation on fluctuations. You can trade cryptocurrency in the same way as other financial instruments, such as stocks, bonds, currencies, and so on. ProfitGid.ru offers readers a list of the TOP 10 exchanges by level of trading volume.

Russian-speaking users mainly prefer the BTC-e exchange. You can find all the top cryptocurrencies there. In addition, there is a chat room on the main site where users can exchange the latest information about investing in cryptocurrencies. To fully trade on exchanges, it is best to acquire several EPS wallets at once:

• WebMoney;
• PayPal;
• Yandex money;
• QIWI and others.

Cryptocurrency mining

Translated from English, “mining” means the extraction of minerals. Now this term is actively used by people who produce cryptocurrency. They call themselves miners. There are several ways to join them.

1. Build your own “farm”.

Previously, it was enough to have a powerful computer for mining. However, the probability of creating a new block and receiving a reward depends on the ratio of the computing power of the device to the total network power. Thus, when Bitcoin first appeared, one person was engaged in mining this currency for several months. Since his computer was the only one connected to the network, he was able to earn about 1 million bitcoins during the period from January 3, 2009 to January 25, 2010. After only investing for a short period of time, this man is a billionaire today.

Nowadays, novice miners are already required to make serious investments. The fact is that large companies are interested in mining. To do this, they assemble special devices consisting of modern processors and video cards with low energy consumption. Thus, the total power of the system has increased significantly. Therefore, owners of regular PCs can forget about mining.

You can assemble a “farm” at home. The minimum amount required to purchase equipment is 2-3 thousand dollars. It looks like this.

Preference should be given to devices with low energy consumption. The fact is that the farm must be constantly connected to the electrical network. In addition, you need to take care of a stable Internet connection. Otherwise, the extraction time may increase significantly.

There is an opinion among users that such investments cannot be beneficial, and cryptocurrency mining is a worldwide scam. The main problem is that energy costs may not be recouped. If previously such a situation could actually happen, now, after the rate of many cryptocurrencies has increased, investing in mining has become a more profitable option.

1. Cloud mining.

There are quite a large number of organizations that are ready to provide computing power for rent. They can be used to mine cryptocurrency. Investment will require a smaller amount of funds, but experts, in turn, warn that against the backdrop of the growing popularity of digital currency and mining, a large number of scammers have appeared.

On the Internet you can easily find companies offering rentals on the territory of their organization. Interaction with the equipment occurs via the Internet. However, among them there are scammers who actually do not have suitable devices for mining cryptocurrency. You can find reviews online from users who have suffered from such investments.

Advantages and disadvantages of investing in cryptocurrency

Investing in any financial instrument has both positive and negative sides, and cryptocurrency is no exception. Before investing real money in cryptocurrencies, it is better to familiarize yourself with all the advantages and disadvantages. Let's start with the pros:

• State authorities cannot freeze an investor’s account or restrict his actions;
• it is impossible to track payments, which means that the level of income is hidden from the tax authorities;
• good prospects for further growth;
• several investment options (mining or speculation);
• a large number of cryptocurrencies worth investing in.

However, there are also disadvantages to investing in cryptocurrencies. Among the disadvantages it is worth noting:

• the inability to cancel a transaction, even if it did not occur at the will of the wallet owner;
• a large number of hackers who are trying to gain access to other people’s wallets;
• high exchange rate fluctuations, which makes it difficult to predict the real income from mining.

Hello, dear readers. The topic of today's article: investing in cryptocurrency.

Do you have available funds? Quite a bit - at least 10-20 thousand rubles? You've probably thought about going somewhere more than once, but every time you chose not to do it.

This is understandable: banks give too low a percentage, playing in the stock markets requires knowledge and instinct, the rest may turn out to be ordinary “scammers”.

What to do if you have very little savings, but want to have a good return?

There is a great way to invest a very small amount, but get significant income after just a few months. This method is investing in cryptocurrency. Today I want to talk about what it is, as well as what cryptocurrency to invest in in 2017.

What is cryptocurrency?

Let's start with simple things, namely, let's find out once again what cryptocurrency is for an investor.

Cryptocurrency is a digital asset (something like money, only expressed not in paper or gold, but in the form of a code), the accounting of which is completely decentralized. This means that there is no “center” that would mass issue Bitcoins or other cryptocurrencies. Because of this, no states or courts can control their circulation.

Let's take a closer look at how this works using Bitcoin as an example in this video:

Why is he so popular?

Of course, this approach could not but affect the popularity (and, as a result, the exchange rate) of Bitcoin.

As soon as people began to understand what it was, the rate of its very first type (bitcoin) began to rise sharply. Even today, almost 10 years after the appearance of the most popular cryptocurrency, investing in Bitcoin is very profitable - its rate increased by more than 300% in 2016.

Are there any other reasons?

The popularity of Bitcoin led to the emergence of other cryptocurrencies.

Some time later, after the appearance of Bitcoin, other similar systems began to appear. Nowadays, people who want to invest in non-traditional assets have a large choice in this market, because now on exchanges you can find a good dozen strong and fast-growing competitors to Bitcoin.

Especially among altcoins (as all cryptocurrencies other than Bitcoin are called today), I would like to highlight DASH and ETH. In 2016, the rates of this “digital money” increased 12 and 8 times, respectively. The difference compared even to Bitcoin is huge: probably no asset in the world brought the same profit last year as altcoins.

Is it really that simple?

However, I would not rejoice at the opportunity to get rich quickly - there are plenty of pitfalls here, as in other areas of investment.

Investing in a cryptocurrency, especially an alternative one, is always dangerous: if ordinary assets always have some prospects for a protracted decline or long-term growth, then for bitcoins and other “digital money” they practically do not exist.

Raising or lowering the rate in just a few hours is within the power of a large group of speculators who will act in a coordinated manner.

Over the almost 10-year history of the existence of bitcoins, there have been several cases when the rate fell very sharply and for almost no reason. Thus, on January 1-2, 2017, the Bitcoin rate was $1,153, and on January 5 it dropped to $850.

Altcoins are a good alternative to Bitcoin: their profitability is even higher than that of the most popular cryptocurrency, and the risks are not much greater. However, this will not always continue: for other “digital currency” market analysts predict a transition to stagnation in 2-3 years.

Advantages and risks of bitcoins

To decide whether to invest your own money in cryptocurrency or not, you need to understand what financial benefits it will bring and what risks you will have to face. Here I will try to describe everything in as much detail as possible, but you will need to make a decision about investing in Bitcoin yourself.

Pros of investing in Bitcoin

1. Quite stable growth. Throughout the history of Bitcoin, there have, of course, been big drops, but this happened infrequently: on average, once every 2-3 years. The four-fold increase in 2016 significantly outweighs the decline: a successful investor can, having invested in the most popular cryptocurrency, not experience a drop in its value over the course of a year.
2. User trust. Bitcoin managed to become popular: even while declining, it subsequently grew sharply. Today, a huge number of Bitcoin users act as a kind of “guarantor” of its stability: several million literate people cannot trust an unreliable asset, right?
3. High liquidity. Selling Bitcoin today is not a problem: Bitcoin ATMs are opening all over the world, the number of Bitcoin exchanges is increasing every year, even some retail outlets accept the most popular cryptocurrency.
4. Independence from external events. Probably only failures in computer systems can have a negative impact on Bitcoin. Political, economic, social “squabbles” - Bitcoin doesn’t care about all this: it is completely decentralized, and events in any country or region, in fact, do not affect it in any way.
5. Low control. Bitcoin today is one of two means of payment (the second is cash), the circulation of which is almost impossible to control. This is very convenient: supervisory authorities do not know how much money you have, where you keep it and what you spend it on.
6. Low commissions. Maybe not the most important advantage of Bitcoin, but I decided to talk about it. Today, although commissions are charged for storage, exchange and other operations with the most popular cryptocurrency, they are small, which distinguishes them favorably from money stored in banks. As financial institutions charge more and more for their services, this advantage of Bitcoin will come to the fore.

Risks and Disadvantages

1. Scaling problem. The Bitcoin network grows over time as the number of Bitcoins increases. However, the throughput of the cryptocurrency network does not change, which is why problems with transfers are already arising today.
   The most important negative consequence is the increase in the time it takes to transfer bitcoins from the sender to the recipient. Often they simply get stuck in the network. In addition, limited bandwidth made small-scale bitcoin transactions unprofitable.
   The problem is being addressed by both Segregated Witness and Bitcoin Unlimited today, but they have still not been able to completely eliminate it. This means that if the protocol remains old, the system will pass through less and less bitcoins, which will lead to a decrease in the attractiveness of bitcoin for investors.
   Those bitcoin owners who suffer the most from the problem are those who prefer to store their funds not on exchanges, but on local wallets: in order for their bitcoins to get into the system, they need to be transferred from their own storage, and today this takes a lot of time and takes a lot of nerves.
2. Possibility of a “bubble” formation. Many investors have serious doubts about whether to invest in Bitcoin in 2017. The thing is that in less than five months the exchange rate has almost doubled (January - $1,000, mid-May - $2,050).
   Of course, there are also objective reasons for Bitcoin, of which there are also many, so the current growth does not necessarily need to be viewed as a “bubble” that will definitely burst. Of course, the volatility of Bitcoin is very high (however, one should not expect anything else from an asset with such profitability), however, many analysts predict its rapid decrease due to the stabilization of the development of the most popular cryptocurrency.

Benefits and risks of altcoins

Altcoins are all digital currencies other than Bitcoin. Investments in them today are also profitable, but there are plenty of risks here.

Let's look at the main features of altcoins.

Growth prospects

Altcoins are young cryptocurrencies: most of them are not even five years old. As I said at the beginning, DASH and ETH showed 12x and 8x increases in value in 2016 (for comparison, Bitcoin “only” increased 4x). Other digital currencies also have the potential for almost unlimited growth: very few people know about them yet.

"Low Base"

The “low base” effect is something that can ruin inexperienced altcoin investors: knowledgeable players take it into account, but those who began investing in an alternative cryptocurrency after it has risen many times over may face great disappointment.

What is the “low base effect”? I won’t bog you down with theory, but will go straight to an example.

So, imagine a situation in which some cryptocurrency costs $2. Its popularity is not yet very high - investors do not consider such a digital currency a highly profitable asset and do not pay attention to it.

“Business” players take advantage of this, starting to massively increase the rate of the cryptocurrency, and after a month its rate is already $32.

An increase of 5 times is huge, but it was not supported by any fundamental reasons, but only by the activities of the players, which tomorrow could turn completely in the opposite direction.

In addition, although in relative terms the increase was 5 times, in absolute terms the price of the altcoin increased by only $30. If the price of such a currency increases by 30 dollars again, then its price will be 62 dollars. Not to mention that it will be much more difficult to “warm up” such growth; the relative increase will be much smaller: 62:32 ≈ 2.

A twofold increase, of course, is also not bad, but inexperienced investors are counting on a fivefold increase!

That is why the effect of a “low base” should definitely be taken into account when paying attention to the positions from which the altcoin began to grow.

Speculation and what you need to know about it

This factor mostly applies to those alternative cryptocurrencies that have weak capitalization, however, more stable altcoins can suffer significantly.

The smaller the capitalization (total volume) of an alternative digital currency, the more opportunities manipulators have to “play” with their rate, sharply raising or lowering it depending on their desires. Sometimes it is impossible to identify speculation even based on an analysis of long-term changes in the cryptocurrency rate: sometimes it can artificially rise or fall for several months or even years, and then return to its real values.

As a result, those investors who suffer are those who, having discovered the promise of cryptocurrency, invested a significant part of their funds in it, and then “got broke” when the rate returned to its fundamental values.

It is possible to escape from the influence of speculators only through a comprehensive analysis of the technology on which the altcoin is based: if it is truly promising (for example, ETH), then even the combined efforts of many manipulators will not be able to stop the reasonable growth of the rate.

Trends and interesting characteristics of cryptocurrencies

The next thing I must tell you about is the trends that exist in the world of cryptocurrencies today.

Decrease "importance" of bitcoin

The first (and probably the most important) is the reduction in the “importance” of Bitcoin.

What I mean?

At the beginning of 2016, Bitcoin accounted for more than 80% of the mass of all cryptocurrencies, but today this figure only slightly exceeds the 50% mark. The capitalization of all altcoins increased to $28 billion (for comparison, in 2016 it was $1.7 billion).

This is a trend you should definitely pay attention to when deciding where to invest in 2017. - It is quite possible that the most profitable investment will be buying an alternative digital currency rather than Bitcoin.

Income from storing cryptocurrency units

The next interesting feature of altcoins is income from storing cryptocurrency units.

For example, DASH masternodes bring income to their owners (provided they maintain “online” status) from coins mined by miners. If the formation of new altcoin units occurs through POS mining, then if the investor has funds in the local wallet and there are no transactions with them during a certain period, interest “drips” onto them.

Availability "voting rights" of the investor

Another characteristic of an altcoin that can play a decisive role in deciding which cryptocurrency to invest in is whether the investor has “voting rights.”

What is it?

If the owner of altcoins accumulates a certain percentage of all units of a given digital currency, then he acquires a certain influence in deciding where to “move next.” Of course, the percentage to be able to make decisions must be quite high, and not all cryptocurrencies have such an opportunity.

Different views of legislation

The final feature of cryptocurrencies is the different views of legislation. So, for example, Bitcoin today can already be used in Japan as an official means of payment on a par with the state currency.

For altcoins, such an opportunity has not yet been provided in any country, but their legalization is also not far off.

Where is the best place to trade currencies?

Today there are several operating on the Internet where, after registration, you can buy both bitcoins and popular altcoins. Funds can be sold (exchanged for another cryptocurrency) or withdrawn from the system to a bank account or e-wallet at any time.

Exchanges show users up-to-date information on the rates of all digital currencies, which means that the investor has time to react to changes and maximize his profit.

Among others, I would like to highlight two:

• Exmo.me- Russian-language exchange operating since 2013. It integrates many payment systems convenient for Russian citizens. It presents only popular cryptocurrencies: Bitcoin, Latcoin, Dogecoin, Dash, Ethereum
• Poloniex.com- a global giant, which is a more serious and functional tool for real speculators. Sony altcoins are presented here

Conclusion

Investing in cryptocurrency is a good way to earn income if the size of your savings is not very significant. Even if the rate falls significantly, you will not lose much, but if it rises, the profit received will be very noticeable.

As for investors who are ready to invest large sums, I would recommend that they distribute funds between several cryptocurrencies: even if only one “shoots”, the income will be much greater than when using traditional investment instruments.

This concludes my short review about investing in cryptocurrency.

If you still have any questions about the topic of the article, be sure to ask them in the comments - we will read and try to answer as thoroughly as possible. If we have readers who have already invested in digital money and received real income from it, be sure to tell us about your experience - our readers will really appreciate your wise advice.

Welcome readers of the financial magazine "site"! Today we will talk about investing in cryptocurrencies: how to start investing and which cryptocurrency is better to invest in.

After studying this article, you will also learn:

• what are the different ways to invest in cryptocurrency?
• how to choose promising cryptocurrencies for investment;
• Which exchange should you invest through?

At the end of the article, useful tips are provided, as well as golden rules for the novice investor.

So, let's go!

Read about how to make money by investing in cryptocurrency, what investment options exist, and how to choose promising cryptocurrencies for investment.

1. Investments in cryptocurrencies as promising investments 💰

Just a few years ago, the Internet space was blown up by a unique event that had a significant impact on the financial sphere of human life. However, many ordinary citizens simply did not notice him. The coup happened very quietly.

Someone who called himself Satoshi Nakamoto(maybe it was some person), created a unique system for making payments electronically. It is completely decentralized and works on the principles blockchain .

To this day, it is bitcoins that remain the cryptocurrency that is most popular and has the highest exchange rate. However, for quite some time now it has been not the only ones electronic money. Several dozen cryptocurrencies have been developed in the past few years.

📌 Theoretically, provided that you have certain knowledge, anyone can develop their own electronic money. It should be understood that this will require considerable investment, since cryptographic encryption and promotion are not cheap.

However, you should not think that it is necessary to create your own currency. Anyone can get a good income from investing in electronic money, just waiting for their value to rise.

At the same time, the peculiarity of cryptocurrencies is that the exchange rate of the most popular ones increases quite steadily. Therefore, the investor can only purchase currency and wait for it to rise in price.

There are a number of advantages of investing in cryptocurrencies:

1. cryptocurrencies are transferred between counterparties on the principles of Peer2Peer, that is without the use of intermediaries, which in the case of traditional money are financial organizations and payment systems;
2. when transferring cryptocurrencies, commissions are set at a very low↓ level – this advantage follows from the first;
3. Electronic money acts as an international means of payment, that is, they can be used in any state provided that the Internet is available;
4. Cryptocurrency wallets cannot be controlled from the outside, therefore, no one has the right to freeze it, or introduce restrictions on the transfer amount;
5. The rate of electronic money is growing steadily. Over the previous year, the value of bitcoins increased ⇑ by more than 4 times, Ethereum in just four months has risen in price by almost 300 %.

There are several ways to invest money in cryptocurrency:

• – extraction of electronic money;
• direct acquisitions. (Read in one of our articles about where and for rubles).

Each of these options has its own characteristics. Some methods require quite serious investments of capital, others are suitable even for beginners with a minimum amount to invest.

Despite the serious advantages of cryptocurrencies, they also have a number of disadvantages.

The disadvantages of electronic money include the following:

1. Many states do not recognize cryptocurrencies. Thus, in Russia there is still no legislation that regulates their use.
2. Decentralization and lack of control are both an advantage and a disadvantage. It is these factors that significantly increase the risk of transactions with electronic money.
3. High volatility. On the one hand, it benefits experienced traders. At the same time, for beginners, the possibility of regular sharp changes in the rate can be a disadvantage. Novice traders in such a situation often panic and quickly lose their invested funds.

⚠ Experts warn that when conducting transactions with cryptocurrencies it is important to be as careful as possible.

There is a widespread belief that cryptocurrencies are in some form of a bubble. Now it is very bloated. However, it is impossible to predict when it will burst.

But despite everything, Cryptocurrency rates are growing ⇑, there is no collapse. Many investors manage to make money from this. And if someone succeeds, it means almost certainly you can do it too. We have already talked about this in one of the previous articles.

The main ways to invest money in cryptocurrency

2. TOP 5 ways to invest in cryptocurrency 💸

There are several ways to invest in electronic money. The simplest one is to purchase cryptocurrency and store it for a certain period of time.

This option requires significant time investment. Moreover, it is only suitable for those who have significant capital. If you invest too little amount, the profit will be insignificant.

Below are the most profitable ways to invest money in cryptocurrency . Of course, they can require considerable labor. But the result from them is more serious.

Method 1. Purchase and exchange of cryptocurrency through exchangers

Today there are a huge number of exchangers operating on the Internet. At their core, they are similar to traditional exchange offices. They are distinguished by expanded functionality, as well as a much larger number of currencies and exchange directions.

For many years, such services have been offering users to exchange Not only traditional currencies, but also funds from various payment systems.

In recent years, exchangers have also begun to offer to purchase or exchange cryptocurrencies. True, not all types, but only the most popular.

To make money using exchangers, you will have to clarify and compare the course offered by different services. With a successful combination of circumstances, you can buy cryptocurrency cheaper and then sell it more expensive.

Independent comparison of rates from different exchangers is a long and labor-intensive process. Finding a good deal this way is quite difficult.

To simplify the process, experts recommend using special services who monitor Internet exchangers. It is enough to indicate which cryptocurrency needs to be purchased, as well as what monetary unit the calculation will be carried out.

After this, the resource itself will search for the optimal course. The user will only have to go to the website of the selected exchanger and carry out the operation. We also wrote in a separate article, we advise you to read it carefully.

Important to remember: exchangers receive profit for intermediary services. Therefore, it is necessary to compare not only the cryptocurrency rates on different services, but also the amount of commission they charge . Some services require for their services before 5 % from the transaction amount.

Method 2. Exchange cryptocurrency directly

By the way, you can trade financial assets (currency, shares, cryptocurrency) directly on the stock exchange. The main thing is to choose a reliable broker. One of the best is this brokerage company .

There are services on the Internet that offer users to exchange cryptocurrencies directly.

Advantage this option is that operations are carried out no commissions . This is due to the absence of the need to use the services of intermediaries.

However, direct exchange also has flaw– it is not always possible to quickly find counterparties willing to make the necessary exchange. In some cases, it is possible to find someone willing, but he does not have the amount necessary for the exchange.

Method 3. Trading on a cryptocurrency exchange

Exchanges allow you not only to purchase and exchange cryptocurrencies, but also to make money on exchange rate differences. Experts recommend investing using an exchange only for those who know at least the minimum basics of how exchanges operate.

One of the world's largest cryptocurrency exchanges is " Binance ", whose turnover is several billion dollars per day.

‼ It is important to understand: investments on the stock exchange are not. To earn money this way, you have to work hard.

Professionals manage to monitor changes in cryptocurrency rates almost around the clock. Moreover, they use specialized programs and study relevant literature.

Also, to pay for purchased monetary units, wallets of traditional payment systems can be useful - Yandex money , Webmoney , Qiwi and others.

Step 3. Purchasing cryptocurrency

At this stage, cryptocurrency is purchased using an exchange, exchanger or forum. You can purchase it not only through purchase, but also through independent production using mining.

Worth considering! Purchased currency can be stored as On account in the system used for the transaction, and in an external wallet.

Some beginners are lucky - on the first day they find a counterparty to buy cryptocurrency at the optimal rate for them. As a result, they manage to make a profit of several thousand rubles in just a couple of days.

☝ We remind you that it is better to use verified exchanges. One of the best is this cryptocurrency exchange.

Step 4. Waiting and analyzing the situation on the cryptocurrency market

Many will be surprised, But one of the most profitable strategies when working with cryptocurrency is not speculation and constant purchase and sale transactions, but patient waiting.

✔ For example, If an investor keeps electronic money in his account for at least several months, he has a chance to significantly increase his capital.

If you invest for a year or more, investments can grow several times. Last year, the price growth of some cryptocurrencies during 12 months reached 400 % .

At the same time, it is important to learn how to analyze the market and carefully monitor the situation in order to sell electronic currency at the peak of its value, fixing the maximum profit.

Step 5. Selling electronic currency and withdrawing money

As soon as the cryptocurrency rate reaches its maximum ( according to the investor) or the profit will increase to the expected value, the time comes to sell the currency and fix the result of the transaction.

However, at this stage the process of generating income is not completed. An important point is also the need to exchange electronic currency for real.

☝ For this purpose, experts recommend to find the best rate use exchanger monitoring services . It is important to understand that in situations where an investor operates with large capital, a difference in rates of even a few kopecks can eat up a significant amount.

🖊 Following the instructions above allows beginners to understand the sequence of actions that need to be performed when investing in cryptocurrency. Moreover, it will help you avoid many common mistakes.

6. Where you can invest in cryptocurrencies - review of the 4 best exchanges 📈

A cryptocurrency exchange is an intermediary that brings together buyers and sellers. At the same time, the platform itself does not carry out any operations. Many successful investors started their journey through this company 💎.

When deciding to invest money in cryptocurrency through an exchange, you need to take the choice of site as seriously as possible.

Exchanges differ from each other in various indicators:

• cryptocurrency rates;
• commission size;
• terms of trade;
• interface.

The interface is not always intuitive for beginners. Moreover, not all exchanges have a Russian-language version. If there is none, you will need at least basic knowledge of English to work with the site.

There are a huge number of exchanges on the Internet. To choose the best one for himself, the investor will have to analyze and compare many options. But experts recommend a simpler method - study the ratings. Below is TOP 4 most promising and reliable exchanges .

1) Binance

Binance — the leading cryptocurrency exchange in terms of daily transaction volume.

Experts note low commissions, fast transactions, liberal withdrawal limits, as well as a convenient trading terminal.

Advantages and disadvantages of investing through the Binance cryptocurrency exchange

2) Kraken

Kraken – one of the first cryptocurrency exchanges. She was educated in 2011 year in the USA, California, city of San Francisco.

From the moment of its creation, Bitcoin trading began on this site. Today the number of cryptocurrency pairs has grown to 57 .

Commission for transactions on the stock exchange is calculated individually, based on the volume of the transaction. In addition, the amount of commission depends on the period during which the user is registered on the site.

3) EXMO

EXMO – one of the most popular Russian exchanges on the Internet. Here anyone can 24/7 carry out a transaction with cryptocurrencies.

EXMO offers an interface that is intuitive. The functionality of the exchange is quite wide. The support service is ready at any time to promptly solve various user problems.

Today there are more than 250 000 users. Transactions with all popular cryptocurrencies are carried out here.

4) Poloniex

Poloniex - an exchange that was founded recently (in 2014 year), but is rapidly increasing the number of users and popularity.

Here you can conduct transactions with various currency pairs, the number of which has currently reached 100 . At the same time, almost all world cryptocurrencies can be used for trading ( even those that arose quite recently).

The exchange is presented exclusively with an English-language interface. But this usually does not interfere with work, since the basic principles of operation are intuitively clear.

For ease of comparison of the exchanges described above, we have summarized their main features in the table below.

Table: “TOP 4 most reliable exchanges for investing in cryptocurrency”

Exchange name	Amount of commission charged	Exchange Features
Binance	Total trading commission - 0,1 %	Leader in daily trading volume
Kraken	Calculated individually, based on the volume of the transaction, as well as the duration of user registration	One of the world's first cryptocurrency exchanges
EXMO	You will have to pay on average for replenishing your account and withdrawing funds from your balance 5 %	There is a fully Russified version
Poloniex	Determined by the currency used during transactions, as well as the method of replenishment (withdrawal)	A large number of cryptocurrencies for transactions

7. 8 tips to help you safely invest money in cryptocurrency 👆

Many experts consider cryptocurrencies to be the best investment option. However, in order for investments to be as profitable as possible, you will need to monitor the market situation, analyze quotes and perform a number of other actions.

To know exactly what to do during the investment process, we recommend that you use expert advice .

Tip 1. Use only well-known sites with a clean reputation

Many beginners decide to use not the most reliable exchanges for trading. This is explained by the fact that well-known sites often charge higher commissions from users.

But it’s not for nothing that they say that miser pays twice. It is better to spend a little more money on paying the commission of a reliable exchange than to lose all your money if your account is hacked or funds are stolen from the site. Similar cases have recently occurred in Japan, Italy and India.

In addition, any self-respecting investor should be aware of the situation and events in the cryptocurrency market. For this purpose, it is useful to study the information provided on reliable Internet sites.

Tip 2. Research information about the cryptocurrency, as well as its developer

Before investing in any cryptocurrency, you should study as much information as possible about it. This must be done regardless of the status of the monetary unit, as well as its capitalization.

In order to study the information, it is first of all important to carefully read cryptocurrency website . The analysis of the documents published here is of great importance.

You should also study the information provided on forums where experienced investors discuss various market factors that affect cryptocurrency.

To be sure of the real potential of the purchased cryptocurrency, the investor should analyze the following criteria:

• what sources support the functioning of the monetary unit;
• what are the goals of its creation;
• who are the founders of the cryptocurrency (by carefully studying their profiles on social networks, you can understand whether they are who they say they are);
• fame and reputation of developers.

Not all investors want to spend time studying such information. However, to ensure that it does not turn out that the capital was invested in an unreliable cryptocurrency, it is important to carefully study the above criteria.

Tip 3. Conduct regular analysis of historical and current data on the cryptocurrency rate

Investors who are looking for a truly promising cryptocurrency for investment should master basics of technical analysis .

If you conduct an analysis based on historical data on the cryptocurrency exchange rate, you can check whether the planned trends in the value of a specific monetary unit were achieved over a certain time period .

This approach allows you to understand which cryptocurrency may be the most successful in the long term. As a result, the analysis will help you make the best investments.

Tip 4. Assess the liquidity of the cryptocurrency you are purchasing

The liquidity of an electronic monetary unit can be assessed using an indicator such as trading volume. Some cryptocurrencies have too low trading volume. If you buy them, it will be too difficult to sell them later.

However, it should be kept in mind that liquidity can also be influenced by the so-called washing, that is, fictitious transactions.

Experts recommend avoiding projects that artificially inflate trading volume. The following signs can help identify such actions:: without a change in the cryptocurrency rate, the trading volume increases sharply.

Tip 5: Invest in time-tested cryptocurrencies

Investments always involve risk, especially when it comes to cryptocurrency investments. However, the risk may be higher if the electronic currency has only recently been released to the market. That is why it is better for novice investors to purchase cryptocurrencies with a proven reputation.

Professionals are sure that for the optimal combination of profitability and risk, you should choose cryptocurrencies that are included in TOP 100 by market capitalization . Moreover, the higher the electronic monetary unit is located in this list, the less ↓ risky the investment will be.

Tip 6. Analyze daily cryptocurrency trading volume

Trading volume for various cryptocurrencies is traditionally measured in US dollars And bitcoins . Comparing this indicator for different cryptocurrencies allows you to understand whether it makes sense to invest in a specific monetary unit.

Trading volume per day allows you to understand how strong a particular monetary unit is. Experts recommend invest only in those cryptocurrencies for which the indicator in question is at least $10,000 .

Experienced users usually do not invest in currencies with a lower daily trading volume, as this is quite risky.

Tip 7. Evaluate cryptocurrencies based on their market capitalization, not their price

Often novice investors make a critical mistake: They evaluate a cryptocurrency based on its rate, not the volume of capitalization.

It is important to understand What exchange rate allows only to compare profitability 1 -th cryptocurrency at different time intervals.

If you need to compare 2 different electronic monetary units, their exchange value cannot be considered an informative indicator. In this case, it is better to use for analysis capitalization volumes , as well as its place among other cryptocurrencies in terms of this indicator.

However, in order to attract new investors, owners often issue additional electronic money. As a result, their real value may decrease ↓ .

When making an investment decision, it makes no sense to evaluate the current exchange rate. Close attention should be paid to its real cost.

Besides, It is important to evaluate the future goals of the cryptocurrency. This will help you understand what the real value of a monetary unit may become in the future.

Tip 8: Continuously monitor your investment portfolio

Important! An investor must always know the rate of electronic monetary units that are part of his portfolio, and also be able to determine the advisability of buying and selling various currencies.

In accordance with this, the composition of the portfolio should be regularly adjusted, stop losses And buy orders .

Today there are a huge number of applications that allow you to track cryptocurrency rates. It is important for investors to learn how to use their functionality to the maximum. This will make the investment more effective.

If beginners carefully study the tips presented above and try to follow them, they will be able to maximize efficiency and minimize ↓ risks of investing in cryptocurrencies .

3 main rules for investing in digital currencies

8. Important rules for a novice crypto investor ✅

At the end of the article, we will present several simple rules that experts consider fundamental when investing in cryptocurrencies. Beginners should memorize them and use them constantly.

Rule 1. An investor must remain calm in any situation

Cryptocurrencies have a high level of volatility. The rate of electronic money is constantly in active movement. For an investor it is of great importance the ability to remain calm in any situation – even in cases where the exchange rate moves in the opposite direction to expectations.

Often, when cryptocurrency falls, messages from panicked users appear on various forums. They argue that the movement is critical and they should urgently sell cryptocurrency before it’s too late.

You should not give in to such sentiments. Important learn to analyze the market and make informed decisions.

Rule 2. It is important to study and actively apply in practice the rules of investment management

There are several important rules that help you manage investments more effectively:

• You shouldn’t invest all your capital in one cryptocurrency (this will allow you to diversify risks);
• you should be prepared for the fact that maximum income can only be obtained with long-term investments;
• Before investing in any company, it is worth checking its reliability.

Rule 3. You should learn to determine the best moments to buy and sell cryptocurrency

If you miss the moment to fix your income, you can lose a significant part of your profit. Therefore, it is extremely important to learn how to determine the optimal moments to buy and sell cryptocurrency.

Experienced cryptocurrency investors call the above rules gold . Beginners should take them into account and always follow them.

9. Conclusion + video on the topic 🎥

Investing in cryptocurrency allows you to make good profits. However, when deciding on such investments, you should remember that they always involve risks.

The risk lies Not only in the possibility of a depreciation, but also in the fact that electronic money is still not recognized by world states.

That's all for us.

We wish the readers of the “site” to receive maximum income from investments! Let the rate of the cryptocurrencies you purchase constantly grow.

If you have any questions, comments or additions on this topic, write them in the comments below. We will also be glad if you share the article on social networks with your friends. See you again!

The opportunity to invest money in cryptocurrency and make money on it attracts an increasing number of people. Is this really so profitable that you need to take it into account so as not to end up losing? You will find the main rules of an investor, tips on how to choose a method of investing in cryptocurrency, and evaluate the attractiveness of a particular coin in this article.

Briefly about cryptocurrency

Such popular bitcoins and altcoins are digital assets (according to the editors). They are not expressed in paper or gold, but in a decentralized code. Precisely because their production does not have any center, such assets cannot be controlled, managed by the state or the courts.

The digital exchangers themselves operate on the same principle as regular street ones. The only difference is that online resources offer more currency pairs. With their help, you can exchange not only rubles, euros or dollars, but also electronic money systems, as well as cryptocurrency. It should be borne in mind that such services charge a commission for intermediary services , therefore this indicator also needs to be taken into account when performing transactions. In some cases, the commission can be large and reach up to 5%.

Direct exchange of digital currency

If you do not want to pay extra commissions, you can invest in cryptocurrency through direct exchange with its holders. For this purpose, there are special websites and forums online. The disadvantage of this method is the fact that sometimes there are not always those willing to make an exchange, or the other party to the transaction may not have the amount you need.

Trading cryptocurrency on the exchange

Such an investment in cryptocurrency cannot be called. This is daily, constant work. Although exchange players (traders) also earn money from the difference in rates, they use special programs for this, read professional literature, and consult with other traders and brokers.

You should not start playing on the stock exchange if you do not have at least basic knowledge of the principles of working on it and the available tools.

It is also important to pay attention to the question of how much you are willing to invest. It is not recommended to invest in exchanges (especially at first) more than the amount with which you are willing to easily part with. Of course, there is no need to invest the entire family budget or borrowed funds from others; every investor should always have it.

When trading on the stock exchange, it is worth remembering several important nuances:

• Sharp depreciation sometimes it doesn't mean anything . This may be a temporary phenomenon that will not require an urgent withdrawal of funds.
• Pay attention to conditions for depositing and withdrawing money on the exchange . Withdrawal times may take up to 48 hours, and the commission may be excessively high (up to 10%), which will completely cancel your earnings.
• Before you start trading, learn how the site works , its features. Then the risk of losing your savings will be significantly reduced.

If you decide to invest in cryptocurrency through an exchange, it is better to prepare well before starting active actions: learn about modern trading strategies, analyze the data necessary for a successful game.

Another way to make money on crypto assets, which is rightfully popular. Investments in cryptocurrency mining can be divided into two types:

1. own token mining;
2. industrial (cloud mining).

In the first case, you will need a large amount of powerful equipment (video cards, power supplies, etc.). You need to not only purchase it, but also know how to handle it. Such an investment in mining can bear fruit, that is, pay off, after a year and a half, by average standards.

An alternative investment option is to become part of a mining corporation. That is, we are talking about cloud mining. Corporations have sufficient production capacity, their Efficiency is ten times higher those who assemble farms on their own. In this case, you decide how much to invest in mining yourself, regardless of the cost of the equipment.

Investments in ICO

Just like investing in cryptocurrency mining, investing in developing projects is popular. Companies planning to issue their own type of tokens based on blockchain technologies may ask investors to provide material support, which can ultimately bring significant profits to both parties.

Investing in ICO can be done in two ways:

1. First, the issuing company collects the minimum required amount of money to issue tokens. After that, they are divided proportionally among investors.
2. Cyber ​​coins are pre-issued and then sold on various exchanges. Traders can use them to invest in ICOs, which will bring greater profits in the future.

However, it is worth considering that the market for blockchain technologies and cryptocurrencies relatively young, it lacks decent regulation. This means that such an investment in cryptocurrency may be accompanied by significant risks. One of the main ones is the high probability of encountering fraudulent tokens that are not being prepared for release at all or their actual profitability will be significantly lower than the declared one.

Investments in blockchain technology

Cybermoney is based specifically on blockchain technology ("block chain").

However, blockchain goes far beyond the financial segment and the virtual economy. These technologies and smart contracts created on their basis can serve as the basis for numerous solutions in the accounting, legal services, construction, industrial, and other segments.

Investments in blockchain technology can also be very profitable. Here the principle of operation is similar to that with. Some involve purchasing your own tokens, others may simply be based on an investment in any currency. However, investing in blockchain technology requires a serious assessment of the risks and profitability of the future project.

It is also quite possible that in order to become a participant in such transactions, very serious investments will be required, the size of which will exceed the standard amounts for playing on exchange platforms.

Step-by-step investment guide

Investing in virtual money, which is not supported by any bank in the world, requires a thoughtful, professional approach. To ensure your investment doesn't turn out to be a failure, you need to think it through seriously before you start. The process itself will consist of at least five stages.

1. Selecting an investment method . It depends on the amount of available funds and how much time you want to spend earning money. Exchanges and mining will not bring immediate results. For those whose initial investment amount is close to zero, the best option would be to use. To make money on them you don’t need anything other than your own time.
2. Creation and replenishment of a cryptocurrency wallet . Along with this, resources may be required for backup storage of funds (Yandex.Money, WebMoney). When choosing a platform for creating a cryptocurrency wallet, you must carefully study the conditions offered by each of them. The most popular options:

   

   Of course, these are not all the steps that are required from a novice investor. A more detailed algorithm depends on the chosen investment method. And by completing all of the above undertakings, you will save yourself from many problems at the start of your investment activity.

   By the way, among experts, investing money in Bitcoin and other coins is considered one of the best options.

   Conclusion

   Investing in cryptocurrency has become a real way to increase your capital. It can be called almost a passive method of generating income. However, do not forget about the risks inherent in this method of earning money. The cryptocurrency market does not have sufficient regulation; it is practically not controlled by anyone. Crypto assets themselves are not recognized by any of the banks and still remain an experimental way of carrying out mutual settlements. However, with due care and a competent approach, investing in virtual money can be a happy chance to increase your wealth.