on the crypto
Although the cryptocurrency universe has exploded relatively recently, it has managed to develop a dense network of financial objects and innovative dynamics that can be an excellent investment ground. The large and rapid price fluctuations of cryptocurrencies, in fact, can create enormous profit opportunities ... for those who can afford the risk!
What is cryptocurrency?
There are thousands of different cryptocurrencies available today and it can be difficult to give a unique definition of the phenomenon. In principle, a cryptocurrency is an encrypted and often decentralized digital currency. Bitcoin was the first cryptocurrency to be created and is definitely the best known in the world. Its success has led to the creation of thousands of alternatives or altcoins.
Most people only have an interest in investing in Bitcoin or another popular currency, Ethereum. But there are also speculators who try their luck with lesser known currencies. Regardless of the currency considered, the common denominator is volatility. Any cryptocurrency has value only as long as people perceive it as value.
Although this is technically true for any currency, it is more pertinent to cryptocurrencies because they are not supported by a government or a precious metal (like gold), as it is for most currencies. This makes it a much riskier investment, and many investors and speculators have learned it at their own expense.
How to invest in cryptocurrency
The most popular place to buy cryptocurrency are cryptocurrency exchanges like Bitcoin Pro. These exchanges allow you to buy currencies such as Bitcoin and Ethereum with a debit card. For the purchase of altcoins, Bitcoin or Ethereum are likely to be required.
As a general rule, it is currently not possible to purchase altcoins with fiat currency (i.e. paper money, such as dollars or euros). Another option that is becoming increasingly popular is the Bitcoin ATM. Today there are more than 4.000 cryptocurrency ATMs in 76 countries.
You can use them for buy bitcoins and send them to your wallet. Cryptocurrencies can also be purchased on the trading platforms, but this would require a valid knowledge of the subject and some time to define the most convenient quote. In any case, it is good to be very careful of the countless scams that pollute the sector. The easiest way to act safely is to trust only those systems that scrupulously follow the KYC and AML standards.
Should you invest in cryptocurrency?
If the cryptocurrency market were to be described in one word, it would be volatile. Nobody can predict exactly what will happen in this area. Consequently, as with any other investment, you need to evaluate your potential gains against your risk tolerance. Yes, this is technically true of all investments.
But other markets - such as the stock market - are growing much more gradually, with significantly less volatility. In fact, the purchase of cryptocurrencies could not be fully defined as an "investment". It would be more precise to refer to it as speculation.
In general, it is not wise to put yourself in a situation where financial health depends on the success of cryptocurrencies. However, if you are well aware of the risks and still want to try, you may be lucky.