Cryptocurrencies are on everyone's lips. Bitcoin in particular has received a boost from Elon Musk's involvement. I've been watching the whole cryptocurrency scene since its inception. Invested I have only some time ago about 100, - EUR, more but to try it out. And besides the speculative idea, what fascinates me about such a currency is the idea of freedom. A currency that works without the intervention of a state power. This makes it difficult to control or manipulate. No freezing of accounts during a crisis, no printing of money when the state, as is so often the case, has thrown its money out the window and simply procures new money.
But especially among speculators cryptocurrencies have become very popular. What to look for when buying and especially what to avoid, I will explain below.
An important criterion for buying a cryptocurrency is the price. This becomes quite unimportant if you plan to hold the currency for the long term. However, the shorter the holding period is, such as for day traders and scalpers, the more important even the smallest price differences are. These price differences also exist between different brokers. Each has a slightly different price for a particular cryptocurrency, especially when you look at it down to the decimal places. Moreover, there are the fees, which can also vary from broker to broker.
A promising way to find the best provider for a particular cryptocurrency is cryptofacile.io, a site that offers an overview on the most common and even exotic cryptocurrencies. A link on the page takes the interested party directly to the provider of the currency.
But other things should also be considered. Thus, in a balanced strategy not only cryptocurrencies, but also other investment vehicles should be used. The magic word is diversification. If you bet everything on one horse, you can lose everything. On the other hand, those who bet on many asset classes are unlikely to rake in astronomical profits in a short period of time, but neither will they have to reckon with losses that threaten their very existence.
As for buying cryptocurrencies, that is, both the selection and the right times to buy and sell: this is a science in itself. In any case, don't be blinded by promises that you will get rich overnight without any effort. Trading is a hard business, it requires patience and perseverance, a lot of knowledge and experience. Experienced traders have thousands of hours behind them, trading with play money. And even in the first trades you trade with small amounts and gradually get used to larger ones. In any case, one should not underestimate the psychological stress of trading, which leads inexperienced traders to irrational behaviour, which eventually brings losses.