In recent years, we have seen how digital currencies such as Bitcoin, Monero, Ethereum, or Dogecoin have become popular. By now, everyone should know, to a greater or lesser extent, what cryptocurrencies are, what they are based on to have value, and why there are so many different types.

My name is Samuel, and in this post, I will tell you what you need to know about cryptocurrencies.

First of all, what are cryptocurrencies?

A cryptocurrency is a type of currency that only exists in electronic format.

It is an alternative payment system based on encryption technologies.

This system does not depend on banks, but on people; it is peer-to-peer.

If you have cryptocurrencies, you will have access to a key instead of something tangible. This key will allow you to transfer that value to another person or entity without the need for an intermediary or trusted third party.

Some tips to keep in mind before getting started in the crypto world:

1. The first thing you need is knowledge, to become familiar with the crypto world and know what it’s all about. Without that knowledge, both of the crypto ecosystem and a winning method to operate, you’re lost. You can start with our crypto blog, for example, although there are a thousand others that can also help you; the information is just a click away.
2. In addition, it is essential that you have money. You must calculate what percentage of the savings you set aside for investment you will dedicate to cryptocurrencies.

6 keys to start investing in cryptocurrencies:

If this is going to be your first time investing, I recommend starting in this world by following the keys I provide below.

1. Know the types of cryptocurrency investment.

You should know that there are different ways to invest in cryptocurrencies.

• On the one hand, there is trading with cryptocurrencies, and as you can imagine, the first thing you need to know is how to trade. Trading involves buying and selling financial assets to profit from these movements.

• On the other hand, there is cryptocurrency mining, which consists essentially of solving mathematical problems in exchange for a reward. For this, you need equipment, and it is a bit more complicated. I’ll leave more information here if you’re interested.

• Another way to invest in cryptocurrencies is to do it long-term. For this, what we do is buy cryptocurrencies to hold them for a long period of time, hoping that their value will increase over the years. This is the option I recommend if you’re just starting out.

2. Know the types of cryptocurrencies and their projects.

Knowing the cryptocurrencies and their projects will allow you to form an idea about their usefulness and future. It is essential to know exactly what we are investing in, not because of fashion or popularity, but because we really believe in it.

3. Start with Bitcoin or Ethereum.

To start, it is ideal to do so with more secure cryptocurrencies. They are some of the cryptocurrencies with the highest capitalization in the world, which makes it quite reliable and secure compared to other projects in the world of cryptocurrencies.

They are among the most valuable today, and their chart tends to grow long-term.

4. Invest for the long-term in the beginning.

Investing for the long-term involves less risk and less action on your part. You buy and hold for a period of time, believing in what you are investing in. This way, you can avoid headaches and not be affected by price fluctuations at certain times.

5. Store your cryptocurrencies in a secure place.

We recommend that you store your cryptocurrencies in a cold wallet. By not being connected to the internet, you can avoid hacking of your private key. These passwords or keys certify that you are the owner of the corresponding address and the funds it contains.

Specifically, we recommend Material Bitcoin (for Bitcoin) or Material Ether (for Ethereum). They are super secure wallets, resistant to fires and floods, that will allow you to store your cryptos without fear.

6. Invest only money that you don’t need

This is a classic piece of advice in this world. Invest money that you won’t need in the future, it’s the golden rule, and yet there are still news stories of people who have lost everything because of this. No matter how secure your investment may be, there is always that possibility, as in everything in life.

The good thing is that you can prevent situations like this by following the golden rule.

What do I need to do to start investing in cryptocurrencies?

To invest in cryptocurrencies, the first step is to choose a cryptocurrency exchange platform. Once you have selected the platform, you can create an account and complete the required verification process. After that, you can deposit funds into your account and start trading. If you want to buy bitcoin safely, you can use our service to do so.

To buy Bitcoin, you can select the BTC/EUR trading pair and then choose the amount of euros you want to spend. Once you have made the purchase, the Bitcoin will be transferred to your exchange wallet. Keep in mind that the process may vary depending on the exchange platform you choose, so make sure to read the instructions carefully before making any transactions.

Cryptocurrency investment for non-experts 

A simple way to invest in cryptocurrencies securely, even for non-experts, is through Material Bitcoin. You just need to access the store, select the wallet you are interested in (to store Bitcoin or Ethereum 100% securely), and choose the amount you want to deposit into your wallet. We will then send it directly to your home.

Additionally, you have access to a variety of tutorials and an assisted support service in case you need help.

We are the first Galician company to obtain official registration from the Bank of Spain.

Advantages and disadvantages of investing in cryptocurrencies. 

Cryptocurrencies are in vogue and can transform the traditional financial world. There are many advantages to cryptocurrencies, but like everything, they also have disadvantages. Do you want to know what they are?

Five advantages of cryptocurrencies

1. Possibility of obtaining large profits

In the current market, there are more than 10,000 cryptocurrencies. Prices mainly depend on the supply of coins from miners and the demand from buyers. For example, the price of Bitcoin is currently at $40,000 (as of April 26), which is a fairly high figure.

2. Blockchain is secure

We can define blockchain simply as a public and distributed (decentralized) database, through which all kinds of information can be sent, received, and stored from anywhere in the world with an internet connection. With this new technology, something that is public and accessible to everyone becomes impossible to copy and replicate at the same time.

3. Fairer and more transparent financial system

Anyone who uses a certain blockchain has the confidence that no one can manipulate the information contained in it, and thus intermediaries that exist today, such as banks, notaries, electoral colleges, provinces, etc., can be eliminated.

4. The cryptocurrency market is always open

Transactions can be carried out 24 hours a day. There is no need to wait to buy, sell, or trade cryptocurrencies.

5.Cryptocurrencies could help win the battle against inflation

By investing in assets that either outperform inflation in the long term or, even better, putting your savings into assets, their value and purchasing power grows over time.

Three disadvantages of cryptocurrencies

1.Understanding cryptocurrencies requires time and effort

The world of cryptocurrencies is complex, and educating oneself requires time and effort. No one is born knowing everything about it.

 2.Volatility

While the price of a cryptocurrency can skyrocket, it can also plummet just as quickly. Remember, cryptocurrencies are a huge opportunity, but you can lose everything.

3. Beginners are vulnerable

Don’t forget that there are still hackers and scams like phishing. Experienced investors are usually aware of this, while novices are more likely to fall for these types of traps. You can check in this article a typical beginner’s fault “The Risks Of Leaving Cryptocurrency In Exchange.“

Tips and basic concepts for beginners

One of the best investment tips I can give you is what I have already mentioned, invest in popular cryptocurrencies such as Ethereum or Bitcoin. These coins are not only less volatile but also have a high return on investment. 

Bitcoin or Ethereum. Which should I buy?

Another recommendation I have is to research and educate yourself thoroughly before starting to invest. In my opinion, this is crucial.

You can acquire knowledge on our blog, where we upload new articles every week. Additionally, here are the best Bitcoin and Cryptocurrency forums to learn and stay up to date.

How many cryptocurrencies are there?

According to Coinmarketcap, there are currently 9,953 different types of cryptocurrencies in circulation. But, which cryptocurrencies are the most profitable? Here’s my podium, the top three that I consider should be part of any decent cryptocurrency portfolio:

• Bitcoin (BTC)
• Ethereum (ETH)
• Cardano ( ADA) 
• Polygon (MATIC)

Bitcoin is the main cryptocurrency you should consider investing in:

Bitcoin is, and will be, the best cryptocurrency on the market for five simple reasons: its scarcity, its security, its decentralization, its transparency, and its worldwide acceptance as a store of value. With those five ingredients, the only path is positive and sustained revaluation over time.

I hope all of this has helped you. My opinion is that, in these times, it is not logical to remain aloof from the world of cryptocurrencies, and the place to start is undoubtedly Bitcoin.

If you want to buy bitcoin or store it in the safest place, do it here.