Investments in Bitcoin cryptocurrency. Is it worth investing in bitcoin Where can you invest in bitcoins

In this article, we will tell you not only why invest in digital coins, but also list the ways and main directions of investing money. We will give a brief instruction on entering the crypto market, designate the TOP cryptocurrencies and the risks that an investor may encounter on the way.

Why invest in cryptocurrency: 7 reasons to do it

The following arguments will dispel myths about the currency of the future, and give an understanding of whether to buy cryptocurrency in the near future. We will outline as many as 7 reasons to do it tomorrow:

1. New solutions in terms of technology and security. The main cryptocurrency Bitcoin has long been considered safe, anonymous, and also quite affordable in terms of acquisition. It operates on the Blockchain. It cannot be hacked, since all transactions are recorded in the register, and each subsequent operation builds on the previous one. In other words, to make any changes in one block, you will need to hack the entire chain. So, bitcoin is a fairly reliable cryptocurrency. Although there were cases when attackers received keys that unlock wallets. But this is a rare occurrence, unless a person randomly provides them to third parties.
2. Availability and prevalence. This is the second reason pushing the investor to quickly exchange fiat money for cryptocurrency. Few people guess that the number of participants in bitcoin wallets in 2017 alone increased by 6 million, therefore, the demand for this cryptocurrency will undoubtedly grow. Many financial institutions see bitcoin as the future. It is already present in the investment portfolios of most banks, venture funds, and is traded on almost all exchanges. Transactions (exchange, deposit and withdrawal) are carried out throughout the day, 7 days a week. This is pushing Bitcoin towards growth. At the same time, due to the constantly growing popularity of the commission for operations with bitcoin, they began to amount to tens of thousands of satoshi, at the end of 2017 it was the equivalent of $ 30. In addition, the throughput of transactions decreased - a total of 4,200 transactions around the planet within 10 minutes.
3. Legality and universality. In some countries, cryptocurrency assets in the form of bitcoin have begun to be accepted as collateral. So in Russia the State Duma recognized it as property. Many private lenders agree to accept cryptocurrencies on an equal footing with real estate or gold. Bitcoins do not need additional storage costs. In addition, they are highly liquid financial assets. In countries such as South Korea, Austria, Germany and some other, Asian and European countries, BTC is completely equated to traditional currencies. With their help, you can not only pay for dinner in a restaurant, but also buy any real estate or car. A network of ATMs for withdrawing bitcoins is already operating in the cities of America, Prague, Bratislava and many other countries. The laws of various countries legalize the cryptocurrency business, and with it its monetary unit - Bitcoin.
4. Highly profitable investment. Few people believe that in 2017, crypto investors managed to get a yield of more than seven hundred percent. There has never been a coin in the world that has shown such huge returns in such a short period of time. Superhigh jumps in rates on the crypto market constantly attract not only large, but also small investors who successfully scalp the market.
5. The most famous investors are increasingly preferring cryptocurrencies. A well-known broker named Mike Maloney, who is the founder of an investment fund in precious metals, who at one time understood how to invest money in cryptocurrency correctly, and recommended that other investors must keep a significant share in bitcoins in their investment portfolio. Gold is no longer a reliable hedge against financial turmoil, he said. And this is easily explained, since Bitcoin is not affected by economics, politics and other social turmoil.
6. Large trading volumes. Bitcoin hits the mind every day with its daily trading volumes on many cryptocurrency exchanges. Every day, BTC transactions are carried out for at least $ 200 million. This is an order of magnitude more than the volumes in the same classic currencies.
7. Value and Comparative Growth Stability. The limited supply of 21 million coins is the main reason for the high value and growing demand for bitcoin. Today, there are about 16 million bitcoins in circulation. Everything else will see the light of day by 2050. Thus, the scarcity of this cryptocurrency is fueling demand among market participants. If you look back at the history of the BTC rate, it becomes obvious that, for some unknown reason, it fell sharply only a few times. But almost immediately, the decline was replaced by growth.

What is the best cryptocurrency to invest in 2018?

Do not miss the opportunity to make money on the cryptocurrency market. Moreover, there are a lot of opportunities to do this. There are at least 1,000 different digital coins on the market now. Investors will wait for the same popularity from other coins, time will tell.

The situation on the crypto market is constantly changing. It is influenced by many factors. The price rate of any coin depends on the dynamics of demand for it, ease of use and the volume of transactions. Today it is no surprise when the price of a particular coin, for example, is $ 30, and tomorrow its value will be 10 cents.

In the long term, only Bitcoin can provide good income. It is the first cryptocurrency with the largest market capitalization and trading volume.

Market capitalization of cryptocurrencies

Here are several top cryptocurrencies in a tabular form that will make a beginner quickly understand how to invest in a cryptocurrency of 100 US dollars or more.

We select the cheapest cryptocurrencies from the table. In our case, these are Ripple ($ 0.66879) and EOS ($ 13.8882). If funds allow, you can buy Ethereum and Bitcoin. Since they are in the TOP5 cryptocurrencies in the world, it means that they are quite in demand, therefore, promising.
If you now invest, say, $ 100 in Ripple and EOS, then by the end of the year you can reach a pleasant profit.

If you look at the chart of Ripple prices, you can see a trend: before the New Year holidays, Ripple is showing growth.

So, summer-autumn is a great time to buy this coin.

Let's look at the prospects for investing in the EOS cryptocurrency. First, let's see the price chart:

We see that a significant increase in the EOS coin was observed during the New Year holidays. Then the price rally was influenced by the eosDAC token. You can buy this token and sell it after the beginning of 2019.

What you need to know when investing in cryptocurrency

Thousands of people today make money on cryptocurrencies in different ways. How exactly do they do it and what risks do they expose to their investments? This will be discussed below.

There are several options to increase the thickness of your wallet using cryptocurrencies. However, it should be noted that there is no 100% guarantee of the safety of the investment. Financial markets have always presented heightened risks for its participants.

With the popularity of digital coins, large players in the face of corporations and foundations came to the crypto market. Now the capitalization of the cryptocurrency market is estimated at hundreds of billions of US dollars.

If you open the Coinmarketcap.com service, then as of June 6, 2018, the capitalization of only one bitcoin is almost $ 127 billion, although, for example, in mid-January 2018 its capitalization was estimated at $ 170 billion.

I have not yet reluctant to learn how to invest a little money in cryptocurrency, and in the end get a lot, in which case, be sure to read this material to the end.

If we talk about the capitalization of other top cryptocurrencies, then Ethereum its value is $ 58.73 billion, Ripple - $ 22.88 billion.

Here's what the top ten crypto coins look like:

Now about the extra-large risks. Just look at how much the price of any digital coin can change during the day. Some show a drawdown of up to 4% at once.

That is, this means that, for example, an investor will buy BitcoinCash today at the market price, but tomorrow the rate of this cryptocurrency will fall by 4%. Now, you understand why it is so important to quickly learn how to properly invest in cryptocurrency.

Hundreds of thousands of traders play on the difference in cryptocurrency market rates. They do this on such large exchanges as:

• Binance;
• YoBit;
• EXMO;
• LiveCoin;
• HitBTC;
• Poloniex;
• Kraken;
• Bitfinex;
• Bittrex;
• BTC-e (Wex);
• Bitstamp.

Some of them sell, and some buy coins, earning on the difference in exchange rates.

Who are traders, holders and miners

It should be remembered that there are only three types of players in the cryptocurrency market:

• Traders.
• Holders.
• Miners.

Let's consider them in more detail in the examples.

Traders

These are the same market participants as those who buy and sell fiat currencies (trade EUR / USD, GBP / JPY, etc.). Nevertheless, the Forex market is not able to provide such large earnings as in cryptocurrency.

Let's say a trader decides to invest in Ethereum. He buys the coin (ETH) on June 3, 2018 at a market price of $ 593.77.

However, the next day (June 4, 2018), the cost of Ethereum increased significantly, and is $ 622.38.

The difference in the rates for this coin in just one day was $ 28.61. This is a profit for 1 ETH. But what if a trader bought 10 ETH? We believe that the calculation is not worth it. Everything is clear anyway. You still doubt whether it is worth understanding the question: how to invest money in a cryptocurrency and not lose it? Our advice is to delve into crypto earning right now!

But the other side of the coin can also happen. An amount of $ 28.61 can turn into a loss for a trader. To prevent this from happening, you should buy only in the most profitable places in accordance with technical analysis or signals that come from other traders.

Holders

This variant of the players is characterized by less risky financial activities, but not enough not to worry about the safety of their capital.

Holders are long-term investors who buy cryptocurrencies and wait for several months, or even years, until their rate increases significantly.

Let's show with an example how this works on a Stellar coin. On April 1, 2018, the holder purchased the coins at a price of $ 0.21 apiece.

A month later, the coin rose in price to $ 0.43 apiece. Let's do the calculation: $ 0.43 - $ 0.21 \u003d $ 0.22.

That is, if the holder bought 1000 Stellar coins, then in a month his earnings would be $ 0.22 x 1000 pieces. \u003d $ 220. And this is only on one cryptocurrency. Now you know how to invest in cryptocurrency in order to make good money on it.

That is, holders are those investors who are in constant search of cheap, but promising, cryptocurrencies.

Holders always form their portfolio of a cryptoinvestor, consisting of not one or several tokens, but from ten or more coins at once, which will further increase in value.

This is a win-win option at first glance, but it's not all that simple. Take at least the same Ripple. This cryptocurrency was predicted to grow to $ 10 per coin during the 18th year. But instead of growth, immediately after the New 2018, there was a drop to $ 1. So those who bought, say, at $ 2 per unit are now calculating their losses.

Important: there were many cases when individual cryptocurrencies fell in price from a few dollars to a few cents, or even disappeared from the list of assets on the exchange.

It is also possible that the exchange will close or the assets traded on it will become the property of hackers. This should always be remembered by those who are looking for information on how to invest in “digital gold” as profitably as possible.

Miners

Surely you have come across the concept of "mining" (mining of cryptocurrency through hardware). So, here, miners are the people who are mining. For a long time, the cryptocurrency community has been debating whether it is profitable to mine crypto money.

There are limitations in this area of \u200b\u200bearnings. So, not every coin can be mined. But, for example, Litecoin, Ethereum, Bitcoin, Dodgecoin are mined in this way.

It is not enough to understand how to invest in cryptocurrency without worries. The miner will need to obtain specialized technical information that allows him to answer questions related to the mining of cryptocurrency using a PC and other computer equipment.

The essence of cryptocurrency mining is to direct computer power to find one of the many millions of possible combinations of only one correct code called hash. Once it is found, the owner of the computing power is rewarded in the form of mined cryptocurrency.

To find the hash, the miner's computer must solve a math problem. There are many services on the Internet (NiceHash) to automate this process. You just need to keep the PC turned on, as well as a special program. The hash lookup process will be done automatically.

Today it is quite difficult to compete with miners. It all depends on the power of your hardware. For professional miners, the farm does not consist of one or ten powerful video cards, but of hundreds of such devices. Laptop owners have nothing to do there.

Naturally, you can always purchase one of these farms online. But it won't be cheap. A normal farm will cost several thousand conventional units.

If you search on Avito, then the cost of a farm can be about as much:

All this is great, but no one will admit to you how long a mining farm can last after the first owner. And how quickly will this investment pay off? You should also take into account the cost of electricity and the power of the power grid itself.

There were such cases that the Russians installed mining farms in their apartments, the wiring, due to the heavy load, overheated and its winding caught fire. As a result, up to 4 apartments were burned down in a multi-storey building. Here are the minuses of mining for you. So, it's not enough just to know how to properly invest in cryptocurrency and not lose. Here you need to be savvy in many aspects, including technical ones.

If you collect information on how quickly the investment in a crypto farm will be recouped, it becomes obvious that you need to count on a period from several months to 2-3 years. Also, few people take into account that the complexity of hash recognition is growing with every second. In digital terms: if in the first month the miner receives $ 120, then for the second it is already $ 110. Summing up, it turns out that the risks of not returning the investment are too great.

Investment methods and directions

One of the easiest ways to invest in cryptocurrency is having capital. You can buy a promising cryptocurrency for fiat money and “bury” it for a long time. This is promising, but very long. This option is suitable for those who have a lot of free money in stock.

But there are more beneficial ways in terms of benefits. We will study them below.

We buy and change through exchange services

On the Internet, you can find various exchange offices that work in the same way as street money changers. However, they have significantly more currencies and more advanced functionality.
You can exchange any fiat money for electronic money and vice versa. The same goes for cryptocurrencies. True, for now, they are offered in a limited list (you can exchange the most top ones). For those who are looking for how to invest money in cryptocoins, it is useful to know one service - BestChange.

This is an irreplaceable assistant and economy, first of all, for those who are engaged in crypto money trading. He will help you exchange any currency at the most favorable rate.

It is very simple to work with the monitoring of exchange offices, so we will not dwell on the analysis of navigation. The site is constantly automatically updated and selects the most favorable exchange rate for its clients.

Important: Some exchangers on his list charge their clients an additional percentage for the exchange operation. This should be taken into account when exchanging.

Exchange directly

There are many special Internet resources, forums, telegram chats, where people can exchange currency, including cryptocurrency, without paying interest. But not everyone knows about them.

Cryptocurrency exchanges

Important: only those traders who really understand the principles of the cryptocurrency exchange should trade on the rise / fall of this or that coin.

Do not assume that this is passive earnings. Trading on the stock exchange is hard daily work that involves analytical work, technical analysis, tracking the news background, self-control, discipline and other work.

At the first stage, just become a member of the exchange - register. Study the trading platform, conditions, buy quite a bit of cryptocurrency, then sell it to understand how the buying / selling process itself takes place.

Before you start trading on the exchange, be sure to read this first:

• You should not panic if the rate unexpectedly shows a sharp drop. This is often the case. Over time, the course is most often restored.

• First of all, check with the technical support of the cryptocurrency exchange what commission it takes for deposit / withdrawal of funds. There are those who take up to 10%. This is a lot.

• The secret code of the blockchain wallet must be safely hidden and known only to you alone. If you lose it once, you won't be able to restore it.

• Start on the stock exchange with an amount that you are not sorry to lose. Here's how to properly invest in crypto money in order to be in the black.

• Be prepared for the fact that it will take 1-2 days to withdraw funds from the cryptocurrency exchange.

Investing in cloud mining

Not the best way to make money on the crypto market. In runet, as well as in bourgeois, there are many sites that provide cloud mining.

It is no different from conventional mining. However, the investor does not need to use computer power - this responsibility falls on the owner of the cloud mining. The investor will need to purchase mining capacities for fiat money.

On average, the return on investment is up to a maximum of 1.5 years. In other words, cloud mining is the production of cryptocurrency in industrial volumes, using professional equipment with an efficiency of hundreds, or even thousands of times higher than traditional average mining.
There are many HYIPs on the market that SCAM within 1-3 months after the start.

So this is a risky business. Do it or not, it's up to you.

Quick investment quick guide

If you have already learned how to correctly invest money in cryptocurrency and make money, then read this cheat sheet for the sequence of actions:

• Think carefully about where and in what cryptocurrency the investment will be directed. After all, there are more than 1 thousand of them. Further profit will depend on your choice.

• Plan your investment. Think over how often this or that coin will be purchased. For these purposes, a certain amount of fiat money should always be set aside.

• Create the most popular crypto wallets (bitcoin, ethereum, ripple, etc.). Without a wallet, you will not be able to withdraw coins.

• Register on the largest cryptocurrency exchanges (Bittrex, Bitfinex, Coinbase, BitstamP, HitBTC, etc.).

• Purchase your chosen cryptocurrency.

• Do not be too lazy to transfer the purchased coins to the offline storage. This will keep them from being hacked.

Investment risks

So, after disclosing the question: how to invest in a cryptocurrency is risk-free and make a profit, ask yourself several times Bitcoin - is it a bubble that will burst sooner or later?

There are people who consider bitcoin and other altcoins to be nothing more than a soap bubble that can burst at any time. These crypto critics include James Dimon, director of JP Morgan.
Some financial investors who are used to dealing with traditional assets (currencies, stocks, futures) believe that cryptocurrencies cannot compete with the same fiat money, since they are not backed by anything.

They are also wary of the ultra-high volatility that is inherent in all crypto money. In other words, an investor who earned a certain amount of money from a jump may lose it in a second.

Here is proof that Bitcoin can not only rise, but also fall.

• Nobody canceled the legal risks. From a legal point of view, not every state allows cryptocurrencies. Okay, but how then can you invest in cryptocurrency without risking in such conditions, you ask? Use VPN.

• Also, in countries that prohibit cryptocurrencies, there may be problems with declaring taxes. After all, their governments have not yet developed the appropriate legal regulations.

• Note that most cryptocurrencies have their holes [vulnerabilities] through which hackers gained access not only to cryptocurrency exchanges, but also to traders' wallets. Remember at least the case of theft of DAO coins. At a time, cryptocurrencies totaling over 50 million USD fell into the hands of hackers.

• You need to be prepared for the fact that any crypto exchange can be closed, hacked by hackers, frozen for an indefinite period.

• The creators of the crypto coin can leave investors with a “nose” at any time.

• Any cryptocurrency can one day lose interest in investment, which will lead to a collapse of the krurs.

TOP cryptocurrencies for investment

To make money in the digital coin market, you first need to determine the TOP cryptocurrencies, with relevance in 2018. In order to fully learn how to properly invest in cryptocurrency and not lose investment, you need to have an idea of \u200b\u200bthe most promising coins.
The information provided below will allow the future investor to save a significant amount of money, shorten the Stop Loss distance and increase Take Profit.

Some cryptocurrency exchanges have a tool to limit losses. You cannot do without it in trading. We will schematically show how it works on the TradingView live chart.

The trader believes that the price of BTC / USD will grow up and at the close of the bullish candle he buys (places a BUY order). To limit losses in advance, he sets a Stop Loss at 7525.0. This means that if the price goes below this mark, then his trade will be closed with a minimal loss.

Now let's try to explain why Take Profit is needed.

The trader, after analyzing the BTC / USD pair, is confident that now is the perfect moment for growth. He places an order to buy (BUY). He immediately insures his deposit with Stop Loss. Now he needs to predict to what level the price will reach. He believes that this will be the 7725.0 level. It is at this mark that he sets Take Profit. Upon reaching it, the transaction will automatically close in profit.

In this list, there are cryptocurrencies that are known to a wide mass, but for completeness of the TOP list of crypts, we will mention each:

Bitcoin (BTC)

This is the first cryptocurrency that most investors consider the benchmark. So, is it worth investing in bitcoin? The lion's share of large investors in the cryptocurrency portfolio allocate more than 40% of all monetary investments to this coin.

To understand how to invest in coins, and whether Bitcoin will grow in the future, just look at its chart. As you know, any upward movement is replaced by a pullback. Right now this phenomenon can be observed. Strong players shake out the weak ones in order to push the price up later.

Bitcoin Cash (BCH)

This cryptocurrency was born as a result of the bitcoin fork, which took place in August 2017.

If you look at the TOP cryptocurrencies presented on the coinmarketcap.com service, you can see that Bitcoin Cash is in fourth place. It is not difficult to predict its course, if bitcoin is growing, then BCH will also grow.

Ethereum (ETH)

Created by Vitalik Buterin, a Canadian programmer with Russian roots, Ethereum serves as a more centralized platform for creating your own applications. Naturally, Ethereum has its own cryptocurrency, which is second only to Bitcoin. Now its money supply is limited at $ 75 billion.

Most of the world's corporations such as Acronis, IBM, Sberbank and other leading companies around the world are already using Ethereum for their own purposes.

Some analysts compare ETH with bitcoin and predict its course by the end of 2018 to $ 15,000. So, before learning how to invest money in cryptocurrency with great profit, study the TOP cryptocurrencies.
We recommend keeping 20% \u200b\u200bof your investment in this coin.

Ethereum Classic (ETC)

I wonder how you would feel if your investment on ETC increased by 1600 percent in a year. The Ethereum Classic cryptocurrency is a fork of Ethereum. This coin is able to bring its owner an annual profit of 2500%.

This is a great coin for a long term investment. We advise you to keep at least 5% of your savings in it.

Ripple (XRP)

This coin started out modestly enough, but then surprised the entire cryptocurrency community with a meteoric rise. Today, few people do not have a couple of hundred or thousands of Ripple in stock.

As you can see from the chart, XRP reached over $ 3.5 in the fall of 2017. It ranks third in terms of capitalization at the beginning of June 2018. Already it is worth thinking about investing in it.

Many financial institutions predict a stable and prosperous future for Ripple in terms of development. We believe that now is the time to purchase at least a few hundred Ripple coins. It happened more than once that during the fall of most cryptocurrencies, Ripple grew.

Litecoin (LTC)

Litecoin's infrastructure is similar to Bitcoin. So LTC can still surprise with lightning-fast growth of the rate, like BCH or XRP.

It is traded on almost all exchanges, is present in all exchangers, all crypto-investors know it and is considered quite reliable in terms of investment.

If you analyze the lightcoin chart, you can see that the price pullback ends and the cryptocurrency asset is waiting for a signal from bitcoin to grow.

Dash (DASH)

In late December 2017, Digital Cash (DASH) surged to $ 1,500. Some market experts predict the growth of the cryptocurrency to $ 3 thousand in early 2019.

From the DASH chart above, it can be seen that for a long time this coin did not demonstrate a rapid growth, it fluctuated more sideways.

NEO (NEO)

This cryptocurrency has sparked a really unhealthy interest in the entire cryptocurrency community after NEO was worth around $ 1.30 in early June last year. A year later, its price is $ 53. Moreover, this is not the maximum coin rate. At the beginning of 2018, its rate reached 160 USD. You must admit that knowing how to invest money in cryptocoins takes time and making a lot of money on it is a really useful skill.

According to some market analysts, this coin will increase its rate by at least 650% by 2022.
This crypt is an excellent investment for a holder who is ready to wait for profit for several years.

IOTA (MIOTA)

This cryptocurrency should change the Internet of Things. Such major consortia as Volkswagen, Samsung, Deutsche Telekom, Fujitsu, Microsoft and others have already entered into agreements with the leadership of IOTA to sell their products to the general public.

At the end of 2017, the capitalization of IOTA exceeded the $ 12 billion mark. Together with it, the coin rate was more than $ 4.60. Although at the initial stage of development, it was trading at $ 0.64 per coin.

EOS (EOS)

Another operating system that allows the development of blockchain applications.
At the time of writing, its rate is just over $ 14 per token. Its creators promise that the updated platform is capable of processing many millions of transactions every second. This is a worthy competitor to the same Ethereum and Bitcoin.

According to some forecasts, its rate should be about 25-27 US dollars by the end of 2018.

Rules and conclusion

If you want to become a professional investor, then learn a few simple rules. They will save you from ruin and allow you to build up your capital.

Invest 5% of funds

The fear of losing a lot of money has always confused even the most seasoned investor. And this is a normal reaction of a person who makes money in the cryptocurrency market. But there is no profit without risk.
Investments in the amount of 5% were announced for a reason. This is the amount that you will not be sorry to lose. After all, even the tiniest investment is at risk of being lost. Even if there is an error in the forecasts according to the growth of a particular crypt, then a loss of 5% of the family budget will not play a special role.

For example, from 1 thousand US dollars of the family budget, 5% is $ 50. Remains $ 950. Even if the rate of the selected token goes in the opposite direction, then you can always allocate another 5% in order to put on it in the right direction, earn and cover losses. This is risk management.

Invest safely

This method of injecting money into the cryptocurrency market consists in investing half of the amount allocated for investments in the most stable cryptocurrencies. The remaining half can be directed to new, but very promising coins.

It turns out that half of the investment amount is likely to give a profit, and the second - 50/50%. Thus, risks can be hedged.

Let's consider an example of how you can invest in cryptocurrency wisely, starting from $ 100. Let $ 50 buy the most stable cryptocurrencies for today: BTC and ETH. Divide the other $ 50 into 5 equal shares, that is, $ 10 each. Let it be some lightcoins from the list discussed above.

Thus, you diversify risks and increase the likelihood of making money on hold.

Invest short term

A fairly well-known method of capital investment. But it shouldn't be used by beginners. Due to the market noise and ignorance of the basics of technical analysis in conjunction with the fundamental principles, you can lose more than one deposit.

What news is considered significant? First of all, those related to the purchase of cryptocurrencies by banks, the placement of coins for trading on large exchanges. All news background related to the regulation and implementation of the cryptocurrency in question in different countries of the world.

Conclusion

Here you learned how to invest in cryptocurrency correctly in order to earn a lot. In particular, the questions were considered: why invest in digital money, what you need to know for this. In addition, the risks that the investor may face were identified. The TOP cryptocurrencies with the maximum market capitalization and, accordingly, the maximum probability of earning after a while were also presented.

If we missed something, please write about it in the comments. We wish you big earnings in the cryptocurrency market!

A bad investor is who does not dream of making a million. And for this you should correctly select the investment tools. In recent years, investment in cryptocurrency has been on the buzz. Token prices are exciting. Take for example - its cost barely reached a thousand dollars at the beginning of 2017, by the end of the year 1 BTC breaks all records, exceeding the mark of 19 thousand USD.

Why is it profitable to invest in cryptocurrency

It is fashionable, it is hype, it has great potential. Answering the question "Why investing in cryptocurrency is profitable?" can be long. Even housewives are already trying to earn money.

When tokens were skyrocketing in late November, exchanges simply could not stand the influx of visitors and experienced disruptions.

Many are inspired by the examples of those who bought coins on the cheap, and today they already have a fortune in the millions. Traders are attracted by the high volatility of cryptocurrencies - sharp ups and downs in the rate allow them to make good money on the price difference.

Here are a couple of examples of changes in the cost of tokens over the year:

• Ethereum: December 2016 - 8 USD, end of 2017 - almost 800 USD.
• Litecoin: end of 2016 - 4 USD, December 2017 - 300 USD.
• Monero: December 2016 - 13 USD, December 2017 - 390 USD.

Nevertheless, we will neither urge you to invest in cryptocurrencies nor discourage you from doing so. We will try to impartially from all sides consider the opportunities that investment in cryptocurrencies and the risks that they pose in themselves promise.

4 investment directions

There are many ways to invest in cryptocurrency. Everyone finds a way to their liking.

Into tokens

• short-term trading;
• long-term trade;
• purchase and storage.

The easiest way is to buy and store coins. You buy cryptocurrency at a low price and forget about it for at least a couple of years. An example is Bitcoin. Those who purchased BTC for several hundred dollars can now sell them for thousands of dollars. What to say about those who purchased tokens at the very beginning literally for cents - today their profits are in the millions.

What to look for when choosing coins:

• market capitalization;
• dynamics of price change;
• whether the system is based on an idea useful to society.

To buy cryptocurrency, we use exchange services or specialized exchanges. The second option is suitable for short-term as well as long-term trading. However, here you will have to work hard. To make money on the difference in rates, you need to be able to analyze the market, constantly monitor the latest events.

In mining

• purchase of equipment and independent mining or in pools;
• cloud mining.

Investing in cryptocurrency mining has recently been a very popular way of investing money. At one time, even a video card could not be purchased for ordinary needs, since the miners took out all the stores' stocks cleaned up.

Today, with the increasing complexity of mining tokens, this activity no longer brings the expected income. It is simply not profitable to mine on a home computer, more money will be spent on paying electricity bills.

To purchase specialized equipment and create a mining farm of acceptable power, investments will be required from several thousand dollars. The payback of such investments will take at least a year and a half.

If you don't have much money, but you have a desire to try your hand at mining coins, you should pay attention to. The principle of this approach is simple. You rent from large companies the amount of mining capacity you need. The equipment is mined on the side, and coins are dripping into your account.

In the development of mining equipment

This method is suitable for large investors, since the amounts in this area start from 6-digit amounts. And not every manufacturer will allow the possibility of investments from outside.

In the development of new blockchain-based projects

ICO is an extremely popular way of attracting money to a project today. The bottom line is simple - a startup, which is often only at the idea stage, issues its own coins and conducts the so-called initial token offering (ICO). Investors who have believed in the project invest in these coins.

If a startup shoots out in the future, token holders can count on high profits, since the purchased coins will rise in price. They also often receive other additional bonuses in the system.

However, the risks in this area are also high. Many startups turn out to be downright scams. There are also those whose team simply did not have enough experience to implement their plans. In all these situations, investors naturally lose their investments. Therefore, one cannot do without a preliminary qualitative analysis of the ICO.

Investing in cryptocurrencies - quick start step by step

It is often difficult for beginners to figure out how to invest in cryptocurrency, what first steps to take for this, and therefore we will analyze the whole process in stages.

Choosing the right option

Mining, trading on the stock exchange, investing in ICO - see which method suits you best. Much more depends on the funds available that you plan to invest.

Since cryptocurrencies are a high-risk tool, invest only free money that you don't mind losing. Not in any way leveraged or set aside for important purchases.

If the budget is minimal, it is unlikely that it will be possible to start mining by creating a powerful farm from specialized equipment or investing in bitcoin. Perhaps you should analyze the altcoin market and buy promising tokens, or try your hand at cloud mining. Those who do not have free money at all should start with cryptocurrency faucets.

We analyze the situation

After choosing the investment area, we analyze the market. You should immediately be prepared for the fact that you will have to constantly analyze the situation if you plan to make serious money in this area.

The basic foundations of the crypto market, and in the future a deep study of all the nuances of its functioning, news, analytical materials - without all this, it is unlikely that it will be possible to remain in the black for a long time. If you are going to trade on the stock exchange, we study the ratings of sites, trading strategies.

Without careful analysis, you shouldn't even start investing.

Getting a wallet

When working with cryptocurrencies, you will need a cryptocurrency wallet anyway. There are different options on the market: online or desktop wallets, applications for installation on mobile devices and hardware. The latter are great for long-term storage of tokens.

We purchase tokens

You can buy bitcoins or other currencies both through exchange services and on specialized exchanges. Before purchasing tokens, it is important to familiarize yourself with the terms of the trading platform - methods of depositing and withdrawing funds, the size of commissions. The most famous exchanges:

• EXMO;
• Kraken;
• Bittrex;
• Bitfinex;
• Poloniex.

It is not worth keeping tokens on stock exchange accounts for a long time - withdraw them to your personal wallets. The number of hacks on cryptocurrency platforms is growing every day. Also, with rare exceptions, coins can be mined. As for the ICO, there coins are purchased directly on the project site.

Risks of investing money in tokens

It is not without reason that investments in cryptocurrencies are considered the most risky way to increase capital. The likelihood of ending up in a broken trough is extremely high here.

One of the main dangers is theft of funds. Hacker attacks on exchanges, mining pools or wallets have already become commonplace. As a result, some sites are forced to declare bankruptcy. Even if the money is returned to users, it is often far from being in full.

Take such a fact as the ambiguous attitude of regulators to cryptocurrencies. So far, Bitcoin has only been recognized as legal tender in Japan. In many other countries, cryptocurrency can be completely banned at any time. And if not banned, then even such a moment is incomprehensible how to pay taxes from it, for example, if this is your main type of income.

There are already cases where banks or well-known payment systems, for example, Western Union, block accounts or individual transactions if they find that money is being transferred to cryptocurrency exchanges.

High volatility is also worth noting separately. In cryptocurrency trading, pumps and dumps are a frequent phenomenon, since this area is not regulated by states in any way. The speculators agree among themselves and artificially drive the price up or down. Some crypto-exchanges are already beginning to fight this phenomenon on their own.

Sometimes, to survive the rally of tokens, when the price soars sharply in one day, and then dives down no less steeply, you need nerves of steel. Many inexperienced investors in a panic start dumping coins in order to save at least some of their money.

In fact, it often turns out that the only thing that had to be done was to wait it out.

Crypto Investment Benefits

Let's briefly go over the pluses of investing in digital currencies:

• You can start making money with a small start-up capital.
• Cryptocurrencies are at the beginning of their formation and you can still jump on the speeding train.
• Cryptocurrencies are based on technologies that can completely change the world we are used to.
• Cryptocurrencies have already shown impressive growth in the value of coins. At the beginning of the article, we gave several examples of price dynamics.

The best cryptocurrencies to invest

Which cryptocurrency to invest in - everyone decides for himself based on certain criteria. Experts advise, first of all, to pay attention to tokens from the top 10 by capitalization. Consider the top five in the ranking.

Bitcoin - the clear leader of the world of digital currencies and, it seems, is not going to give up the palm. It is consistently breaking all price records despite numerous pessimistic forecasts. Today it is traded at a price of more than 17 thousand dollars per coin.

Ether - has been confidently holding the second place for several months. The smart contract platform allows the creation of decentralized applications. The cost of one token is currently about $ 700.

Bitcoin Cash - Bitcoin fork. Detached from the main network and took on a life of its own in August of this year. In terms of value, it is an order of magnitude inferior to its progenitor - one coin is traded at $ 1,800.

Ripple - on a wave of positive news, it periodically pushes Bitcoin Cash from third place, but then falls back to the usual 4th position in the rating. Ripple actively cooperates with banking institutions around the world. Integration of its network with existing payment systems makes it possible to speed up payments by an order of magnitude and reduce transaction costs.

Litecoin - confidently closes the top five digital currencies. Was one of the first cryptocurrencies created as an alternative to bitcoin. It operates on the basis of similar algorithms, but at the same time, payments in the Litecoin network are faster.

Other tokens that are attractive in terms of investment are:

• Monero is a cryptocurrency in which transactions are characterized by maximum anonymity;
• IOTA is a token developed for the so-called Internet of Things. In other words, for smart devices connected to the Internet that independently solve everyday tasks.
• Golem is a system based on the original idea of \u200b\u200bleasing computing power.
• NEM is a platform that positions itself as the "New Economic Movement". Large banks of different countries have already become interested in the system technology. With its help, you can not only conduct transactions, but also create new assets, transfer messages.

Investments in cryptocurrency - reviews and prospects

You will not find an unequivocal opinion on the Internet about investing in cryptocurrency. Views on the world of digital coins sometimes differ absolutely dramatically.

The statements that cryptocurrencies are a bubble that will burst at any moment have been heard often lately. Cryptocurrencies are often compared to gambling. At the same time, many sincerely believe that Bitcoin in the coming years will cost at least $ 100, or even 500 thousand dollars per token. And all this is said not even by ordinary users, but by well-known bankers, large investors who turn over millions, or even billions of dollars.

For example, Jordan Belfort, known in the past as one of the most successful stock brokers, whose events in the life of which formed the basis of the movie "The Wolf of Wall Street", considers Bitcoin to be a colossal scam that will surely fail. And Israeli Prime Minister Benjamin Natanyahu, on the contrary, believes that the usual banking operations can eventually be replaced by bitcoin transactions.

Who will be right, time will tell. Today, the capitalization of cryptocurrencies has already exceeded $ 600 billion, of which almost half falls on bitcoin. Whole fortunes are earned on cryptocurrencies, and using different options: both in mining or stock trading, and in the classic purchase and further long-term storage of coins.

According to the latest research, in 2017, about $ 2 billion was invested in specialized hedge funds that focus on cryptocurrencies. Next year, analysts predict that even central banks of the world's leading countries will start investing in tokens.

For some, investing in cryptocurrency is something of a fantasy, for others it is a profitable source of income.

While some are thinking about where to invest their money, someone is actively investing and picks up a big jackpot.

How to make money on cryptocurrency?

We will cover the most effective methods in this article.

In addition, you will learn how risky such investments are, what results can be expected from them and in which currency it is more profitable to invest funds.

Investing in cryptocurrency: benefits

When it comes to the best investment vehicles, cryptocurrencies are always mentioned. Why are they attractive?

1. Modern technologies. The creation of digital money is based on unique technologies. You can use cryptocurrency in almost any country (with a few exceptions). Therefore, you can earn money in a convenient place and at any time.
2. Increase in value. Bitcoin and other popular cryptocurrencies are rising in value. It happens that the cost drops sharply, but after a while it increases significantly. This can be seen by looking at the ups and downs of bitcoin over the years. If you approach investing correctly, you can easily earn income by playing only on the difference in rate. Or in the long term, buying bitcoin now and waiting a couple of years.
3. Expansion. New cryptocurrencies appear regularly that can become an investment. Forecasting growth in value gives you the opportunity to improve your financial position with minimal effort.

Where to invest?

The success of investing in cryptocurrency depends on choosing the right digital money. It is important to use profitable cryptocurrency here, which will not lead you to losses. When choosing, consider the following factors:

1. Popularity. Find out how common cryptocurrency is among users. Great interest, availability on exchanges, growth in value - all this indicates the popularity of digital money.
2. Mobility. Choose a currency that can be easily moved around.
3. Safety. A good cryptocurrency must be protected from scammers.

Many modern cryptocurrencies have these characteristics. The most common in terms of investment is, of course, Bitcoin.

It is the most valuable cryptocurrency for investors. It has been around for 10 years and has already become a definite standard for alternative money transfers, overtaking all other cryptocurrencies.

Bitcoins are safe, mobile and popular. In recent years, their value has increased dramatically, as can be seen in the graph.

How to Invest in Bitcoin?

• Purchase. The easiest way to invest in BTC is to buy it on an exchange. We use CEX.IO - this is one of the few exchanges where you can quickly buy cryptocurrency using a bank card. For the first purchase, the most simplified interface is suitable:

Cryptocurrency exchange at CEX.IO

Cloud mining. You've probably heard that it is unprofitable to mine cryptocurrency at home, and only huge industrial farms can do it. But it doesn't matter! The remote mining service IQ Mining offers you to earn bitcoin by mining other highly profitable coins. The so-called "smart" mining automatically switches between the most profitable coins, which are subsequently converted into bitcoin at the most favorable rate. This mining method is by far the most profitable.

Trading. Speculative trading on the stock exchange requires certain knowledge and skills. Our guide will help you understand the basics of this case. The Binance exchange is by far the best choice for trading. It has it all: lots of cryptocurrency pairs, huge trading volume, low fees and high limits. And here you can also invest in other cryptocurrencies if you wish.

Let's take a closer look at the pros and cons of investing using Bitcoin as an example:

pros	Minuses
Stable and very fast growth of cryptocurrency	Network scaling problems, high fees, "freezing" of transactions in the network
High level of community trust, largest capitalization and number of users	Interest from government regulators in cryptocurrency is also growing, and in some countries it is already banned at the legislative level
Liquidity, various options for buying / selling cryptocurrency and even buying goods with Bitcoin	An overly sharp rise in the exchange rate raises concerns that it may also sharply "collapse"
Savings tool - instability and inflation of fiat currencies further provoke demand for bitcoin, the emission of which is limited to 21 million coins - no more, no less
Lack of government regulation, decentralization and pseudo-anonymity

Where to start investing?

Choose one or more cryptocurrencies with which you will work. The payback period and the amount of income depend on this.

Allocate funds for investment. You need an amount for the initial investment and further support of investment activities.

Buy cryptocurrency. Wait for the right time to purchase digital money at the lowest rate. Buy currencies in the downturn.

Move the purchased currency to an offline wallet like Ledger Nano S. This will protect you against theft. You should not leave money in an exchange account if you do not plan to sell or change it in the coming days. Also, do not store large amounts on mobile and online wallets.

Potential risks

Before investing your funds in bitcoin or other cryptocurrencies, you need to understand the associated risks. Some users consider the cryptocurrency to be another "MMM" or the so-called "bubble". Despite the constant talk about it, the cryptocurrency continues to exist and actively develop for many years.

That kind of money isn't backed by anything other than limited emission and community faith. But until the government passed regulatory laws, investing in cryptocurrency is a profitable business.

There is a risk of losing investments due to a sharp decline in the value of the cryptocurrency. Much here depends on the foresight of the investor and his ability not to panic.

In many countries, there are no rules governing the circulation of cryptocurrencies. You will not be able to pay taxes on income. In addition, there are countries where digital money is prohibited.

Despite some risks, many advanced users are interested in investing in cryptocurrency. This is a great chance to make good money. Use it while you can.

Is it worth investing in Bitcoin

Bitcoin is not just a digital cryptocurrency, it is also an investment tool. The principle of investing can be compared to investing in any other currency, such as dollars or euros. Even if classic currencies raise a lot of questions, the question of whether it is worth investing in Bitcoin may even lead to a dead end. On the one hand, it is a promising instrument that is only gaining popularity, but on the other hand, bitcoin has already established itself as a highly profitable but extremely risky investment.

The dangers of investing in bitcoin

There are two things you need to do before you decide to invest in bitcoins. First, take a close look at what bitcoin is. Second, you need to know all the dangers of investing. Bitcoin combines all the dangers of classic currencies, but the risks associated with the principles of cryptocurrency work are added to them:

• Exchange rate risks;
• Lack of centralized control;
• Indefinite legal status;
• Low prevalence;

There are always exchange rate risks when you exchange the currency in which you conduct your main business for any other currency. This applies not only to bitcoin, but also to euros, dollars and other currencies. The bitcoin rate is shaped by supply and demand. In defense of a stable exchange rate, they cite the fact that the number of bitcoins is limited. This fact is indisputable, but if we look at the history of the bitcoin rate, we will see that the currency has never been characterized by a stable rate or some kind of long-term predictability:

No other currency in the world has shown anything like it in recent decades. The cost of 1 bitcoin has increased from a few cents to $ 1,000 in 5 years. In times of high exchange rate and expensive bitcoin, this was explained by the fact that the amount of currency is limited, and its production reached an unusually high level of complexity. But everyone was waiting for a fall to marks around $ 200 per 1 BTC.

Decentralization of bitcoin and the absence of a regulator - all this is positioned with a plus sign. Yes, the absence of a regulator that could significantly affect or even worsen the position of the currency is a plus, but only on the one hand. Lack of control breeds abuse or even insoluble disputes between participants.

It is not in vain that regulators exist to work with real currency, for example, Central Banks. The bitcoin system itself is as transparent as possible - all users can look into any wallet or trace any transaction. The absence of a gendarme in the currency market, and bitcoin is a currency, is fraught with situations where one of the parties is infringed and has no opportunity to defend itself.

Scammers can steal your bitcoins. You will not have the opportunity to find protection and return the stolen, even if you have all the evidence on hand. Wallets are well protected, and the encryption system does not allow forgery of transactions. But there are less obvious patterns. For example, one of the largest exchanges MtGox “lost” almost 700 thousand bitcoins due to a hole in the system. The exchange accumulated money from ordinary people and companies, and as a result, all customers lost their bitcoins.

So, the legal status of electronic currencies is in question, and bitcoin in Russia has not yet been able to find its place. Since March 2016, the Russian government has actively taken up the regulation of bitcoins and is still developing a bill. For a long time, there were rumors about the ban on bitcoins in Russia, but they never came true. On November 7, 2016, the Central Bank again returned to the issue of crypto-currencies and called on Rosfinmonitoring and the Ministry of Finance to jointly develop a system for regulating bitcoins in Russia.

Investing money in something that does not actually have a stable legal status is a big risk. Tomorrow, the exchange of bitcoins for rubles can be made an administrative or even a criminal offense. They can introduce only partial restrictions on the use of bitcoin, or they can even legitimize its use. Experts disagree, but you can watch the following video to better understand the situation:

The low prevalence of bitcoins is another possible nail in the coffin of a cryptocurrency. Any currency “works” exactly as long as it is “believed”. For 7 years of its active development, Bitcoin has not been able to grow from an electronic currency into a full-fledged means of payment. Surprisingly, bitcoin is more popular as a speculative financial instrument, and not as a means of payment for goods and services.

The situation may end up with bitcoin turning from currency into numbers on screens. The numbers, with which only investors (or speculators) work, and the real buyers of currency, who use the currency to exchange for goods and services, will become so few that the BTC price bubble will burst. Some experts predict that the technology will not be able to gain the necessary popularity and will collapse in the same place where it all began - to near zero points against the dollar.

How to invest in bitcoin

Investing in bitcoin is similar to investing in any other currency: buy for cheaper and then sell for more. Using financial instruments on the bitcoin exchange, you can also perform a reverse “sell” operation. To do this, you need to use one of the exchanges. In Russia, the BTC-E exchange was popular. However, it is now closed, but there are other popular Bitcoin exchanges.

You need to create an account on the exchange. If you already have bitcoins in your wallet, then you can transfer them to the exchange account for sale. If you have neither bitcoins nor a wallet, then you can buy bitcoins with real money. To do this, you need to deposit money into your account on the exchange. Buying bitcoins on the exchange does not require you to have a wallet. You only need a wallet if you want to withdraw Bitcoins.

The meaning of the investment is simple - you have to predict the rate and buy the currency cheaper than you will sell it in the future. Bitcoin differs from most real currencies in that it is highly volatile.

You also have another opportunity - to "get" bitcoins, this is called mining. Instead of buying currency, you can buy powerful computers and use their computing power to “create” bitcoins. When you get bitcoins, you can exchange them for real money on the exchange. For an investment, you need to calculate how much the equipment costs, how much it costs to maintain, and evaluate the computing power. Keep in mind that the difficulty of mining is growing every day, so every day your investments will bring less and less.

There is a third option - an indirect investment in bitcoin, which is available when buying shares of the Bitcoin Investment Trust. This option is one of the safest in legal terms, since you are working not with cryptocurrency, but with company shares. The fund's shares are officially traded on the OTC market in America. 1 share of the company \u003d 0.1 BTC. At the time of this writing, the share price exceeded the real value of BTC by 35%.

Any of the above options for investing in bitcoin suggests that you have to understand and anticipate the exchange rate. Investments can provide you with both 10-15% monthly income and a similar loss. Some exchanges offer the use of financial instruments, including the play of a fall, as well as "leverage". This is available, for example, in Alpari. All this requires an even greater understanding of the cryptocurrency, otherwise there is a risk of losing the entire investment amount.

The most famous of the cryptocurrencies has been around for almost 10 years, and during this journey its price has risen thousands of times. Many investors who invested at the beginning have already received impressive profits for a long time. The price of bitcoin directly depends only on how much people are willing to pay for it, because this currency is not tied to any state in the world, and not to any ordinary currency. In this article we will look at investing in bitcoin and everything related to it.

How are bitcoin investments profitable?

Should you buy bitcoins? To understand why it is so profitable to invest in bitcoin today, let's look at its features:

• Bitcoin is not tied to any bank, there is no center that would control it, which means that there is no official transfer fee, and transactions cannot be canceled. and yet they charge a small fee for bitcoin transactions.
• Complete anonymity. All you can find out about a transaction is the number. When registering a wallet itself, you do not indicate your data, which means it is anonymous.
• Cryptocurrency is limited. The speed of its production decreases and tends to zero. This means that when all the bitcoins are mined, their price will increase dramatically. The sooner you start investing in bitcoin, the better!

Two basic rules for your investment in Bitcoin projects to pay off are:

1. It is not recommended to convert currency frequently, as there is a small loss of funds with each conversion.
2. Choose projects that generate profits in bitcoin and not in another currency.

Bitcoin investment investors start with as well.

Investment object in bitcoin

The process of investing in bitcoin is anonymous, and the amount of currency is strictly limited. All this makes bitcoin mining an extremely attractive way to generate additional income.

Today there are two strategies for investing in bitcoin: "to grow" and "play on the stock exchange". Let's take a closer look at each of them.

For growth

The simplest strategy that even a novice investor can handle. Buy cheaper and sell higher is what is required of you. Get yourself a wallet for storing bitcoin and transfer funds to it at a time when bitcoin is "in decline". Once the price has risen well, you can try to sell it higher. Don't jump out ahead of time, stay calm.

Exchange trading

If you have experience in Forex or binary options it will be easier. If not, it's harder. The principles of trading on bitcoin exchanges are similar to those used by traders.

Bitcoin trading in Russia is still in its infancy and therefore, if you strain a little, you can quite make yourself a good fortune.

Where to invest to make money?

It's time to consider all the current options for investing in bitcoin. Decide which option is more suitable. Someone chooses less risky options and is content with insignificant profits, someone puts everything at stake and sometimes wins (and sometimes loses everything that was put). You can also invest in other assets - vse-investicii.ru

We invest in funds

Funds for making money on cryptocurrency are in many ways similar to banks. By investing in a fund, you create yourself a deposit in bitcoin and get a profit from it, albeit a small one. In order for you to work with funds, you need to know English, because fraudsters often operate under the cover of funds.

Today there are a number of programs that minimize these risks, and also increase your chances of staying profitable. Funds invested in such programs are multiplied by trading on the stock exchange or by buying other assets, the price of which will soon go up. The developers of such services claim that financial risks are minimized to the maximum, and your daily income can be up to 3% of the deposit amount.

The disadvantage of investing in funds and similar services is that there is no guarantee of stable profits.

If your funds have been reinvested in something very risky and the service organizer has gone bankrupt, then you will definitely find yourself at a loss. In order not to find yourself at zero, first invest small amounts and remember about diversification, otherwise, when asked whether to invest in bitcoins, you will always categorically answer “no”.

We earn with the help of pools and

In the world of bitcoin experts, there is a joke about miners and the pool. The joke was born from two words: mining and pool. Mining - that is, mine work, mining. To mine bitcoin means "to mine from". A pool is a pool, and a mining pool is a service where you can rent power to get bitcoin. The service performs complex calculations, and if some part of the bitcoin is mined, all members of the pool receive their reward.