After Bitcoin was launched in 2009 by Satoshi Nakamoto, many people started considering the future of cryptocurrencies. However, the real interest in investing in cryptocurrency began in 2017, when not only new digital coins began to appear, but the price of Bitcoin went up drastically. What do you need to know before investing in cryptocurrencies?
What is cryptocurrency?
Cryptocurrency, in other words, is an innovative, distributed accounting system that stores information about the state of possession in contractual units. The cryptocurrency holder can store his funds on his computer or more often, in an electronic wallet. Cryptocurrencies are traded electronically, without the involvement of any banking system, directly between users of the cryptocurrency, in peer to peer technology. This means that the transaction is not supervised in any way.
Cryptocurrencies, like Bitcoin (BTC) are based on Blockchain technology, a system of tracking resources using a distributed digital ledger. In simple terms, that means many people hold a record of every transaction that takes place in the system.
The first digital asset, Bitcoin was created to resign from the central authority and bank system. Currently, it is used in countries with high inflation rates or by people who do not have access to banking services.
How to Invest in Cryptocurrencies?
The first thing you need to do if you want to invest in crypto is to register on a cryptocurrency exchange. This is a safer option than buying cryptocurrency from an individual. Exchanges are divided into those that accept money (i.e. you can deposit EUR or USD) and those that only trade on cryptocurrency/cryptocurrency pairs (this means that you will not deposit traditional fiat currency).
When choosing an exchange, it is worth following the opinions, a clear interface, and your own convenience: it is worth using the option of paying with debit and credit card. Make sure that the exchange is not a scam and has optimal fees.
After registering and verifying your account, you can log in and start investing. So the next step is to choose appropriate cryptocurrency. As you probably know, the crypto world is full of different coins. You should know your needs: are you more interested in a long-term investment or short-term or what risk you want to take. You can also make money by buy and sell crypto (buy when the price is low and sell when it’s higher).
Also, remember that you need to store your cryptocurrency somewhere. That is why a digital wallet was created. How to choose the best wallet for your personal finance? Digital wallet is a software-based system that securely stores users payments information and passwords for numerous payment methods and websites.
Which cryptocurrency to buy?
The market of digital assets is growing fast, so it is getting harder to choose good currency for investing/trading. The most popular crypto is Bitcoin. Having BTC in your portfolio is almost imperative. You can easily buy Bitcoin in a safe and quick way on practically all exchanges.
Many novice investors may have a problem with choosing the best crypto. That’s why we decided to make the choice a little bit easier for our users. In CoinsLoot we implemented a loot box system, which is giving you a new opportunity to let fate decide which crypto you will get. Also, we are the world’s first crypto platform where you can get real world items for your exchanged cryptos.
CoinsLoot is the world’s first crypto project with loot boxes made as a decentralized application. CoinsLoot is running on the native LOOT token, users with any crypto based on ERC-20 are able to buy unlimited amounts of tokens, stake them in the smart contract and earn profit from each loot box opened by users. In the loot boxes users can find cryptocurrencies and luxury items as well.