3 ways to invest in cryptocurrencies If you are reading this article, it is that you are interested in how to invest in cryptocurrencies , y...

3 ways to invest in cryptocurrencies

If you are reading this article, it is that you are interested in how to invest in cryptocurrencies, you are even curious to know about this type of currency.

Surely you have heard about the word Bitcoin these days, from an acquaintance, friend, and even a relative.

You have also heard people saying that they are making money mining this type of digital asset.

But what is true about it is that very few people manage to get large amounts of money as you have heard.

Some people fall for scams, but there are two poles, and between these two opposite poles there is a financial and technological ecosystem, which despite being in operation for a long time, is still on its way to success.

In Spain, out of every 100 people, approximately 12 have cryptocurrencies.

How to invest in cryptocurrencies and what are they?

For those who do not understand what it is about, we can mention that it is a public data storage system, which is materially impossible to be falsified.

It is based on an electronic book that is open and based on cryptography, that's where the word "Crypto" comes from, which is where many users make transactions.

All this without any third party, since all these types of operations, let's say, are stored in a chain of blocks that cannot be reversed.

This is because it is all distributed on millions of computers from practically all over the world.

The main currency that emerged in 2009 was Bitcoin, it is an asset that today trades above €50,000.

But after Bitcoin, other projects related to cryptocurrencies with different functions were appearing.

What do you have to do to make investments in cryptocurrencies?

The main thing to do is create an account, let's say, on an exchange platform, where you have to exchange euros for cryptocurrencies or tokens, but you have to pay a commission beforehand.

The best known around the world are Coinbase and Binance, but there are others that bet high in terms of marketing.

An example of this is Crypto.com, where what they are looking for is "gems", this means that they are looking for new projects with low capital in the market, in order to give a good shot in terms of price increases in a space of time. shorts.

If what you are looking for is to go for the presale of tokens, Coinlist is one of the references.

You will find a multitude of provider exchanges, but the most recommended is to create an account in the most used exchanges.

In order to register you have to go through the KYC process, this means Know Your Customer, which translated into Spanish means know the customer.

It is about verifying your identity in such a way that you will comply with regulations and legality.

I know you're not here so they don't ask you to comply with rules and things, but that's better than finding places where they don't ask you for anything at all.

Therefore, even if you are an exchange, that does not mean that you will not suffer a cyberattack, since if that happened, all your money would be more than lost.

You must have a hardware wallet

This is where you have to know that all exchanges are the ones that hold all your cryptocurrencies.

This means that they will give you a digital wallet within their application where you will store your assets, and they will not be under your control.

Let's say you have a kind of promise that they are yours, but you never know what can happen, as in everything.

But to make them yours, you have to get a hardware wallet, it is a device, where the cryptocurrencies are stored offline.

We can say that it is safe, in which only you will know the private keys, in such a way that you will be calm since nobody will touch yours.

When you activate a wallet, you will be provided with a "seed phrase", these are several words that come in a certain order.

In case your wallet is lost, you will have to put the new one to be able to recover the account with your assets.

It is very important to keep the password in a safe place and above all never share it with anyone.

Tips for beginners on how to invest in cryptocurrencies

Now that you have seen the previous steps of how to invest in cryptocurrencies and where to buy them, what comes next is to have the market studied.

If for whatever reason, you don't feel like it or you don't have much time, but you want to get into crypto, the ideal is that you buy some Bitcoin and let it grow over time.

If you really want to know about this project model, you have to delve into it to find out if it is really worth investing in it or, on the contrary, not.

The most common mistake of many beginners when investing is to think that a market only goes up and up, but every rise always ends up falling.