Although there are countries like India that have banned the use and trading of cryptocurrencies, in most countries they are legal .
Not only will you be able to buy and sell them at will, but in some states there are even stores that accept direct payment with crypto for the products they sell.
In the US, even real estate companies have recently appeared that allow you to purchase homes through such payment instruments.
There are also states that want to introduce virtual currencies issued nationally, such as:
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Why cryptocurrencies are so popular
Cryptocurrencies have many supporters today, and the reasons why they choose to buy such tools are many:
- Many see cryptocurrencies as the currency of the future and choose to buy them now, before their price rises further.
- Some believe that the main advantage of a cryptocurrency is that they are not related to any central bank, and this only increases their value over time.
- Technology enthusiasts choose the crypto version because they understand, trust and like the idea of the blockchain behind these virtual currencies.
- There are also investors who have seen virtual currencies as great ways to make money and choose to buy, waiting to sell when the price goes up.
Is it good to invest in cryptocurrencies?
If I mentioned a little above that some choose to invest in crypto, let’s go a little deeper into this topic, answering the question “Is it good to invest in cryptocurrencies?”.
As the price of virtual currencies can rise at any time, many see these tools as a real opportunity to make money.
The problem is that, just like in the case of Forex transactions, when you buy a cryptocurrency it does not generate any cash flow.
So, in order for you to make money, there must be someone in the future who agrees to pay more money on it than you gave.
For this reason, such investments can only be seen as speculations, not investments in the true sense of the word .
Most experienced investors urge us to stay away from the crypto market if we want to sleep peacefully at night.
And you will see in the example below why.
Why it’s not safe to invest in crypto
Let’s take as an example what happened in the past years: in December 2017, the value of Bitcoin was very close to $ 20,000. A year later, it hit a low of $ 3,200.
It is true that in December last year, it had again reached the threshold of $ 20,000, and now it is at historic levels.
But if you had bought at the maximum in 2017, you would have had to wait until now to succeed in making some profit.
Pretty long, don’t you think?
Why invest in cryptocurrencies
The reason why many choose to invest in cryptocurrencies is precisely the volatility that most experienced investors blame.
And as I gave a negative example above, let’s give a positive one:
If you were to buy Bitcoin in early December last year, you would have given it around $ 18,000. At the time of writing, its value is nearly $ 49,000.
So it would have resulted in a profit of $ 30,000, or 166%.
Pretty good, isn’t it?
How to buy cryptocurrencies
In the past, it was a real story until you got cryptocurrencies.
But today the process is much simplified and everyone has access to such tools through applications such as Revolut or eToro .
Through them you don’t even have to bother to open a wallet in which to keep virtual coins, because they will be safe inside the applications.
The purchase is very easy, at the touch of a button, and the sale, if necessary, the same.
Here are the steps you need to follow to purchase cryptocurrencies:
1. Choose a trading platform
We recommend that when you buy a cryptocurrency you do it using applications that will allow you to own the currency itself.
There are some sites through which you will only be able to purchase crypto CFDs. But we suggest you stay away from them.
If you want to own a virtual currency, you can do it through eToro , Revolut , Binance and Coinbase platforms. These four are the best known, although there are many others.
We would suggest you use eToro or Revolut.
Not only because we have a partnership with them and we will receive a commission after your registration, but also because, through them you will be able to make investments in shares , goods such as gold, silver, oil and much more.
But if you only want to focus on crypto, then Coinbase and Binance might be more appropriate.