Cryptocurrencies: Everything You Need to Know Before Investing

Cryptocurrencies: Everything You Need to Know Before Investing
Sep 30, 2020 0
Cryptocurrencies: Everything You Need to Know Before Investing

It has been three years since there was a real boom that swept Bitcoin and made the whole world speak. The period when the name Satoshi Nakamoto was on everyone's lips, and the cryptocurrency sector attracted extreme media attention.

Since then, this sector has grown significantly, although so far there have been clearly obstacles and mistakes in its path. At the end of December last year, Bitcoin's capitalization peaked at $ 645 billion before dropping back to around $ 450 billion. However, investing in cryptocurrencies is not that easy as it might seem.

How Cryptocurrencies Were Born?

Let's try to figure out the origin of the two words that make up this term, and we will see how the word "crypto" comes from the Greek language and refers to something that was hidden, hidden. Well, one of the peculiarities of cryptocurrencies is that they are visible and can only and exclusively be used by those who know a certain computer code that has been renamed to passkey. The fact that the term "currency" or "currency" is associated with cryptocurrency simply means the fact that it has become a real unit of exchange, the purpose of which is to transfer not only goods but also services.

All thanks to the inventor of Bitcoin, this Satoshi Nakamoto, whose true identity is still unknown, since this name refers only to a pseudonym. We're in 2020, but no one has figured out who might be hiding behind this number yet: Craig Wright tried to claim himself as the inventor of Bitcoin, but it didn't go well.

How to Invest in Bitcoin?

Nowadays, compared to what it was a few years ago, the choice is much wider for anyone who intends to start trading cryptocurrencies seriously and responsibly. In fact, there is not only Bitcoin, but over 6,000 digital currencies available to choose from on the Internet. Of course, one cannot help but face reality: Bitcoin is without a shadow of a doubt the benchmark. Meanwhile, China is even thinking about opening its first state-owned cryptocurrency in 2021.

In reality, however, investing in the cryptocurrency market does not only mean buying the cryptocurrency itself. In fact, there is now an opportunity to invest in the performance of a digital currency in a specific stock market: all thanks to the availability of innovative financial derivatives called CFDs.

Well, CFDs are nothing more than Contracts for Difference, a tool that is becoming more common among those who invest in various online trading portals, as it allows you to earn money not only if the price of the cryptocurrency starts to rise , but also in the case when the same happens.

Tips for Choosing the Best Online Investment Platform

When choosing an online broker, it is important to make sure that they have obtained all the various permits and certifications to operate within Italy. In particular, it is recommended to check for CySEC and CONSOB certificates. Also keep an eye out for fees and costs, perhaps a bit hidden, that you may encounter while using the platform. It should be especially noted that the best online brokers allow you to open an online account completely free of charge, and trading operations have low commissions.

The opinions and assessments expressed in the text are the views of the author of the article and may not represent the position of Cryptogeek. Do not forget that investing in cryptocurrencies and trading on the exchange is associated with risk. Before making decisions, be sure to do your own research on the market and the products you are interested in.

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