Where to start your journey in the field of cryptocurrency, how to store them correctly and what are the main risks of this industry
On April 14, the bitcoin rate updated its historical maximum value near the mark of $ 65 thousand. After that, the value of the cryptocurrency fell to $ 28.8 thousand, as of July 2 , it is at the level of $ 32.8 thousand. amounted to almost 50%.
Galaxy Digital founder and CEO Mike Novogratz called the miners’ departure from China a positive development for cryptocurrencies. Novogratz drew attention to the fact that tough bans on cryptocurrency failed to destroy bitcoin.
At the same time, Jason Urban , the co-head of the trading department at Galaxy Digital, predicted that bitcoin would update its all-time high by the end of this year and rise to $ 70 thousand.
Urban suggested that the negative news background that is now observed on the crypto market will dissipate by the fall.
There are various ways to invest in digital assets.
The first and easiest of them is through crypto exchanges. To do this, it is enough to create an account on them and transfer money to it. It is worth remembering that a commission is charged for depositing funds, which on average can be 3-5%.
Another way to buy cryptocurrency is through an exchange. There you can buy bitcoin and other digital assets using bank cards, electronic payment systems, and even cash.
Often, commissions in exchangers are lower than on crypto exchanges, and average 1-3%. However, then you will still need to create an account on a crypto exchange or crypto wallet in order to store the purchased coins.
The third way is to buy digital coins “off hand”. They can be purchased from other users with cash or bank transfer.
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How to store cryptocurrency correctly?
The easiest and most convenient way is to keep your cryptocurrency on the exchange. This will allow you to quickly exchange your assets for fiat or stablecoins.
At the same time, it is believed that trading platforms are not the safest place, since all of them are subject to hacker attacks.
You can also store digital assets in browser based crypto wallets, such as My Ethereum Wallet, in applications on your phone or computer.
Some of them provide the ability to pay for goods and services using cryptocurrencies or exchange them for traditional money and other coins.
The safest way to store cryptocurrency is by using a hardware wallet. However, in this case, the user does not have the ability to quickly get rid of their cryptocurrency if unforeseen circumstances occur.
To sell your coins, you will need to use the services of a crypto exchange or exchanger, and this takes time.
The main danger
The most risky way to buy cryptocurrency is “with hands”. There is a possibility of losing not only funds during the exchange, but also endangering your life.
Adding to the risks is the fact that the digital asset sphere is poorly regulated, which makes it difficult to prove your case in court.
When buying coins using exchangers, there are several risks at once. The main one is to contact an unscrupulous service or to scammers.
You can also make a mistake when filling out an application for the purchase of an asset. In this case, the funds will simply “burn out”. They cannot be returned, since it is impossible to reverse the transaction in the blockchain.
When investing in cryptocurrencies through trading platforms, you should use only the most famous of them – they are more reliable. In the case of small exchanges, there is a higher risk that they will go bankrupt or not be able to resist a hacker attack due to weak security systems.
The beginning of the way
For an inexperienced investor, the safest place to start is by creating an exchange account and funding it with a small amount. You can buy stablecoins with it, such as USDT, TUSD, BUSD and others. These are fixed rate cryptocurrencies that are backed by the US dollar.
By storing capital in stablecoins, the user does not take risks, since he is protected from the volatility of the price of cryptocurrencies.
This will give the user time to get acquainted with the exchange interface and its capabilities.
It is advisable to invest in leading cryptocurrencies in terms of capitalization, such as Bitcoin, Ethereum, XRP, Litecoin and others.
The lower the coin is in the rating, the higher the chance that this project is abandoned or may turn out to be so in the future.
It is safer to invest in cryptocurrency in parts and after a strong drop in its rate. This strategy is called averaging and is used to find the best price for investing in digital assets.
It will be helpful to keep all receipts for the purchase of cryptocurrency. They may be needed in the future if you need to explain the origin of funds, for example, tax.
And most importantly: it is recommended to invest in digital money only those funds that are not a pity to lose. Because no one can guarantee the rise in price of the cryptocurrency.
Moreover, some analysts are confident that its price will fall in the future. For example, ADVFN CEO Clem Chambers suggested that in the future the bitcoin rate could drop to $ 10,000 and even to $ 7,000.
**Argo Blockchain plans to list shares on NASDAQ
