How to invest in cryptocurrency? Our practical tips for beginners

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Investing in cryptocurrency can seem complicated. Do you need to actively trade to expect to make money? Not necessarily. Even a beginner needs a few minutes to purchase. If you are new to the cryptocurrency world, choose a secure trading platform and create an account. We explain the basic knowledge you need to have Investing in cryptocurrency can seem complicated. Do you need to actively trade to expect to make money? Not necessarily. Even a beginner needs a few minutes to purchase. If you are new to the cryptocurrency world, choose a secure trading platform and create an account. We explain to you some basic knowledge that you need to have.

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How to invest in cryptocurrency?  Our practical tips for beginners
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Invest for the long term

If you’re new to investing, the easiest way to get started is with long-term investing. Just buy a cryptocurrency like bitcoin or dodgecoin, and store them in a wallet, i.e. a virtual wallet. It is a bit like a safe that can store and protect crypto-assets. A long-term investment strategy is also called “holding” in crypto and stock market jargon. Thus, we are betting that the value of cryptocurrency is increasing. If so, then you decide when you want to receive your profit. Some investors are satisfied with a profit of 25% of their capital to resell, while others prefer to wait until their investment has at least doubled (+100%). This “long-term” strategy requires a small number of transactions and does not require regular activity in the cryptocurrency market.

How to invest in cryptocurrency?  Our practical tips for beginners
© Litebit

How do I transfer my profit?

Did you realize a capital gain? On the day you want to restore all or part of your cryptocurrencies to Euros in your current account, you simply have to do the opposite, i.e. convert the amount of BTC of your choice into Euros using the sell procedure and then transfer those Euros to your current account at using a SEPA transfer (Single Euro Payments Area). It is the only euro payment area that allows secure standard or instant transfers and direct debits between countries in the SEPA area.

Trade more actively

Trading consists of betting on price movement, up or down, through an online broker. This is a “short-term” strategy. Many crypto traders practice day trading, executing one or more market orders per day. However, it takes a lot of practice to be a profitable trader. Without real skills or any understanding of the market, it will be extremely difficult to master trading. If potential profits are multiplied tenfold by leverage, the risks of loss are just as great. Therefore, proper training is strongly recommended. improvise day trader this is a bad idea.

As you have already understood, while traders use daily price volatility to make instant profits, investors, which is most likely your case, are more interested in the long-term performance of cryptocurrency. More and more crypto platforms are appearing on the market. Also, make sure that the site offering you investment in cryptoassets is legitimate. And then, also venture into cryptocurrencies that are less well-known than Bitcoin, for example waves.

Editor’s note: Cryptocurrency is subject to extremely high volatility. It is unregulated, making it a risky investment. Investing money also costs money. Any income received in cryptocurrencies must be declared.

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