Understanding Cryptocurrency in 2023
Before investing in cryptocurrency, various points should be clarified. The emergence of this type of investment is very strong and the number of investments is only increasing. Platforms that offer you to invest with attractive commission offers, for example, are very numerous on the Internet. But before you get started, be sure to educate yourself properly so you don't fall for scams like Ponzi schemes. It aims to attract potential investors because of the staggering returns. Indeed, the number of investors managed to double in just six months due to several reasons, we also tell what will happen to crypto in 2024.
Why has cryptocurrency gained such momentum?
Several phenomena have prompted citizens to invest in cryptocurrency. First, the growth of cryptocurrency in developed countries brings to the population more and more information about assets that allow some to get rich. You are probably familiar with Bitcoin (BTC), which tops the list of most popular cryptocurrencies and is talked about a lot because of its high volatility.
The events related to the pandemic, affecting a large part of our lives, have pushed, on the one hand, the population to switch to new ways of investing due to the curiosity ignited by social networks, on the other hand, due to a decline in trust in centralized banking organizations.
Recently, Bitcoin, Ethereum or even Cardano have seen significant performance. BTC in particular has become very valuable due to the increased importance given to users. The value of an asset is created, in particular, by the number of people interested in it. The bad news about the major players who own BTC is for good reason; The two listed companies MicroStrategy and Tesla are said to hold the largest amount of BTC, what is bitcoin, read more at this source.
It is almost impossible to determine the number of Bitcoin owners due to the revolutionary technology that hides under the cryptocurrency system: Blockchain. According to a recent study, 11% of Americans own Bitcoin, which equates to approximately 30 million Bitcoin holders in the United States. Another study found that about 5% of Europeans own Bitcoin (ie 37 million owners). This is still very approximate.
Basic knowledge to invest your first euros
If you are interested in investing in the cryptocurrency sector, do not hesitate to inform yourself very regularly about this type of asset.
Be careful
Being cautious means, first of all, that it is important to invest an amount of money that you are willing to lose completely. This is a good way to avoid stress and quick manipulations.
Be curious
Curiosity is an asset if used wisely. Indeed, the cryptocurrency field is vast and you will never run out of knowledge in this field. In addition, new products continue to arrive. Thanks to curiosity, which is always oriented towards new knowledge, your critical sense is sharpened, and you begin to better evaluate the information that comes to you.
Diversify your portfolio
Investing all your money in cryptocurrency is usually not recommended due to high price volatility. The curves change every day and you can find yourself in unexpected situations. To limit the risks, an interesting way is to invest money in several cryptocurrencies. While it is true, cryptocurrencies with a track record provide a better understanding of situations than recent cryptocurrencies or cryptocurrencies that have yet to prove themselves.
Indeed, Bitcoin stands for the past ten years, making it the oldest asset on the market. In addition, the portfolio can be diversified by owning several of them on different platforms. Not all trading platforms have the same success, it is important to trace the history of mistakes and common advantages. Some of these can inadvertently crash users, so it's best to anticipate network and server-related errors and issues.
Protect your cryptocurrencies
It is strongly not recommended to leave your cryptocurrencies on the trading platforms, moreover, the cryptocurrency should not remain in the same account.
Your investments should be tailored to your personal needs and goals. Thus, it is recommended to take into account your age, your financial knowledge and experience, your investment horizon, your financial situation, your tolerance for losses and finally your personal projects. You can then place yourself in a specific type of investment.
Don't start with day trading
A rookie mistake is to start trading cryptocurrency day by day. As a beginner, you need to enter the market slowly and start investing for the long term. The work of a trader is complex and requires real knowledge, traders who spend whole days in front of several screens have a lot of experience and several years of training in the field of finance.