Investments have been a reliable way of gaining passive income for centuries, with capital that can work for you. It has been 10 years since a new object for investment appeared in the world, in addition to gold, real estate, and minerals. These are cryptocurrencies. The first was bitcoin, about the success of which there was a lot of strife, but nevertheless, it is growing and forming the market: today there are already formed top-100 world currencies and various schemes of investment in them, which stimulates the development of the industry. By the way, I’d like to recommend using this wallet for buying crypto — jaxx.io. It is very easy to start working with!
A large number of useful ways of implementation, high level of security, lack of inflation and regulation by a single digital bank, as well as a number of other factors form the investment attractiveness for investors: — the investment market is filled with new players from China and India: in October 2020, after the announcement of the president of China on the blockchain support, BTC appreciated by 40% in a day — the cryptocurrency market has the same laws and principles as the stock market and also operates technical analysis, which allows to calculate the risks, choose the most effective way to invest
Where should a potential investor start? My recommendations are as follows: — have a general level of erudition about cryptocurrencies, mining, leading coins and the market situation in general — decide on the amount of investment and outline a strategy — choose a currency that you are not afraid to lose, respectively — do not necessarily chase the BTC, It is worth to have a closer look to beginners and prospective ones, which are traded in the range of 100 USD per unit, because the cryptocurrency market is extremely risky — to choose a trader or an advisers company, which will accompany you at all stages, analyze and minimize risks and will determine the most profitable strategy
So what are the possible risks for investors?
Some experts compare investments in crypto to «MMM», calling it «lottery», because the issue is just supported by the belief of the cryptocommunity in a bright future and is not regulated by the government, especially in the CIS countries. On the other hand, it is also a plus, affecting the profitability of operations: the absence of taxation on such income, which, for example, exists in Switzerland. Like all other high-yield instruments, cryptocurrencies are associated with high risk, although the potential dividend interest damps the «voice of doubt and fear» in the heads of investors. However, a sharp collapse of the rate, after a long growth, can also play «against» the investor, plunging him into panic.
This is where consultants are useful, they can competently explain what nuances can arise in the period of the investments. In the example of bitcoin, clearly visible «bullish» trend in 2020, despite all the world processes, but if you turn to the quarterly analysis at the beginning of the pandemic, you can see the huge drops, which made investors nervous, though by the summer the situation has stabilized.