How to invest in cryptocurrencies?

Cryptovalutes is a great tool, providing users with huge possibilities – even if we only talk about classic investments. Everyone wonders what the golden mean to earn on virtual currencies is, but let’s honestly answer here that there is no perfect and sure way to earn on virtual currencies.

However, there are many of them, and all persons considering earning, trading and investing in cryptocurrencies or ICO tokens, should decide for themselves which of them is the most convenient. We encourage you to familiarize yourself with information about leverage, speculation, trading and even investing in start-up projects.

Cheap buy, sell more expensive – short and long-term transactions

Trading with the help of crypto exchanges is one of the most popular ways of carrying out one’s investment projects. We have a huge number of companies, stock exchanges and exchange offices on the market, which provide trading opportunities. It is worth mentioning that it is a form similar to stock exchange operations, where we analyze the project, activities and potential, buy the number of tokens we are interested in, wait until they grow to a satisfactory position and sell at a higher price.

We distinguish between two schools – the first one talks about short-term transactions (e.g. day, 3 days, week) and based on small percentages, or the second one – long-term transactions, i.e. purchase of tokens and calm observation of further events (e.g. for one, two years, 10 years). The advantage of the first method is that at any time (e.g. during bad analysis and decline) you can switch to long-term transactions by keeping the currency in your wallet for longer. Personally, we encourage all interested parties to try both possibilities, especially if the investments in cryptocurrencies and this new form of gambling that comes with it are to become a way of life at some point! When trading in the short term, traders most often observe tokens that have the potential for the so-called “pump”. (pump and dump), a sudden jump by several dozen or even several hundred percent – however, it is important to know when to escape from this carousel, because just as the price rises fast upwards, it can begin to fall as fast down.

Speculation of an increase or decrease

We will not deal with Forex, but the rule of speculation about bitcoin or cryptocurrency signals is identical. If you invest funds on the appropriate platforms, you only assume with the market whether the currency will increase or decrease – physically you do not become the owner of a given number of tokens and cannot transfer them to your private wallet.

So why are users willing to use such websites and portals at all? Because they usually offer a lever. It is a popular investment tool that is loved or hated by users. Leverage means the ability to buy or sell (or more precisely speculation), whether a particular crypto will increase or decrease. The number of tokens is only used to invest the right amount and the transaction does not resemble a bet. What does the lever look like? The amount paid should be multiplied by the service, i.e. if the customer receives the leverage x100 and wants to invest 100 zlotys, he can buy Bitcoin for 10 000 zlotys. It cannot transfer these values anywhere else, because it is only a bet that makes it possible to earn more quickly and more if there is an increase, but you must expect that a loss is also possible – then there is a debt to the stock exchange.

It is a great tool for people who already have experience in the world of cryptocurrencies and know what rules they are governed by. Users who are just beginning their adventure by choosing a currency they simply like, will probably quickly lose the funds they have invested – even a drop of a few percent with high leverage means a loss of several thousand dollars for the user.

If you want to try trading with leverage on bitumen, the ideal place for this is the Bitmex exchange (learn more about Bitmex or register here).

ICO – there is risk, there is fun

In order to invest in projects, it is worth knowing what the ICO is popular all over the world. Older investors have concealed, often preaching bold theories in which they express themselves unflatteringly about this form. ICO is a tool for start-ups and crowdfunding, because it is usually the case that investors receive nothing interesting in return for their donation – in this case a certain number of tokens, which have been generated by a project company, go to their wallet.

Of course, we never have the certainty that the project will come to fruition and will not be a SCAM, but by receiving an official white paper and all the necessary information about the people sitting on the management board of the project, we are mostly sure that it will be possible to finalize the plan. Does this mean that those who decide to buy ICO tokens will earn money? Although the success of the project is of great importance for the price, it does not guarantee the willingness to introduce tokens through the crypto exchanges – it is worth looking for information whether any platforms have already taken an interest in a start-up and want to start cooperation after the start of the project.

Is the best way to do it?

Unfortunately, even the best ICO projects may fail, speculation may be inappropriate or something may happen that reverses the upward trend. For beginners we offer trading – both short and long term (HODL). If they gain experience, you can try your hand at speculation, but it is worth basing on small amounts of money, the possible loss of which will not be a severe blow – let’s treat it a bit as gambling and a game in which we can either earn quickly or lose quickly. In the meantime, it is worth looking for interesting start-up projects, and forums and groups in the social media are full of many interesting reports.