To understand how to invest in cryptocurrency, it is important to finally accept the fact that the entire amount of funds can be lost without bringing profit. The financial market of cryptocurrency is constantly experiencing some fluctuations, with the latest news changing the commission, terms of purchase, etc., so you should not wait for a constant increase in profits. If a “good moment” comes up, you can use several ways to earn a good amount of money on the speculative nature of cryptocurrencies. If high volatility does not play into your hands, you can not only break even, but also lose everything.
Beware of phishing!
Inexperienced investors are at high risk from phishing sites and spam emails, cold calls, fake websites and applications. Therefore, when registering a wallet for cryptocurrency, you should be extremely careful with the application itself, and even more so with all sorts of email messages. Fraudulent companies obtain wallet key data via phishing (fake websites, viral software, crypto-advertising, emails with false links). You should also be extremely careful with new tokens, because there are a lot of scams among new coins.
Problems of high volatility
To assess the risks of investing in a particular cryptocurrency, it is important to learn how to analyze the trading history, understand the main indicators, track the sales volume of the asset. For example, Bitcoin has experienced a couple of crises when the price was approaching a record low, but after that it has beaten previous records in value and popularity. It is worth to decide in advance where to invest in cryptocurrency – it can be a gaming platform, a decentralized exchange, an exchanger, a trading platform.
