What cryptocurrency to buy and how to do it
Buying, selling and managing cryptocurrencies is part of everyday life for millions of users around the world.
Bitcoin is the most famous cryptocurrency, but it is not the only one. Thousands of virtual currencies have become popular as a payment method and technique to invest and obtain profitability thanks to their advantages over conventional systems.
At Cresio, we remain at the technological forefront of cryptocurrency trading. That's why here, we´re going to explain to you the rules to know which cryptocurrency to buy and how to do it. Get ready to find out!
6 golden keys to buy the best cryptocurrencies
Many people will tell you to invest in virtual currencies, some will be very popular, but others are unknown to anyone.
Pay attention to details when buying cryptocurrencies is vital to avoid scams or frauds. For this reason, we explain what are the golden keys to buy the best cryptocurrencies. Pay close attention.
Is it safe to invest in this virtual currency?
If someone tells you that they are going to create a cryptocurrency and that they need investment, you must make sure that it is not a fraud, as it happened with SQUID, the coin based on the popular series The Squid Game. That is why, if you are going to invest for the first time in cryptocurrencies, the ideal is to opt for coins with a certain track record. Perhaps, Bitcoin. Maybe Ether. Or maybe another one.
- Solves a problem
Is it a fad or does it really solve a need? Does it have staying power?
Check if the cryptocurrency meets market demand by solving a problem. If not, it most likely doesn´t make sense. New virtual currencies that are launched on the market must satisfy needs other than those of Bitcoin or other cryptocurrencies. Otherwise, they will have no long-term value. For example: Bitcoin was created to become a means of payment; Ethereum was born to create and manage so-called smart contracts (code that moves money according to set conditions); Dash brought speed to transactions; Cardano brought the third generation of blockchain; and Polkadot showed that the crypto market can also engage with the environment.
- Network strength
Who is behind this cryptocurrency - is it a large or small community?
Another extremely important point to take into consideration when analyzing the veracity of cryptocurrencies is the community or network surrounding it. It should not only be active, but growing and oriented to support its community of users. Usually these users have some stake in the coin, which means that they trust in it, in its survivability and in its value by the community.
What is the resistance level of the cryptocurrency?
The code on which cryptocurrencies are created is the main layer of security. For this reason, it is important to check its resistance. In other words, analyze the code to ensure security against possible attacks. Coding experts are the best people to perform this analysis and determine whether the coin is susceptible to hacking or not.
Do you know that you can make a lot of profit in a short period of time? Do you also know that the opposite can happen?
One thing must be clear, and that is that the cryptocurrency market is very volatile. Meaning that its value can skyrocket at any time, but it can also plummet from one day to the next. An example of this is the rise of Bitcoin in 2011, when it reached $29.6 before falling to $6.55 two months later.
- Development team
Who is behind the coin's design? What is its reputation in the market?
Answering these questions is key to confirming the validity of the cryptocurrency as to whether it is secure or not. It's not about having heard of the members of the development team, but the reputation, qualifications and overall quality of their work. This is like Amazon, PayPal or Google. Most of us don't know the people in their tech department, but we trust their services because of the quality of the work they do.
Do you already have any idea which cryptocurrency to buy? Whatever option you choose, don't invest blindly.
How to buy cryptocurrencies
Making the right choice is important, especially when your money is at stake. When it comes to investing or trading cryptocurrencies, there are a wide variety of platforms. Don't worry if you don't know where to start, we'll tell you about it now.
There are many cryptocurrencies with which you can operate in the market, but as they are decentralized, there is no bank or central authority that issues them. That is why cryptocurrency trading platforms constitute a very important aid.
- Where to buy?
There are two ways to buy virtual coins: on cryptocurrency exchanges and on trading platforms. There are many sites where you can buy Bitcoin, for example, safely and almost without risk. You just have to log in, pay with your card the amount of cryptocurrencies you want and that's it. Here are some of the main ones: Binance, Coinbase and Kraken.
- How to acquire cryptocurrencies?
The first thing you have to do is to register on the site you choose. In most of them you will find the option to Register. You must create your account by entering your personal data (name, surname, email and password) and create the account. You will then receive a confirmation email in the mail. You may also be asked for some extra security measures, such as receiving an SMS code on your phone.
Once you have created your account, you will need to verify your identity by following a few simple steps, such as uploading a photo of your ID card. Once registration is complete, the usual thing to do is to start buying and selling cryptocurrencies. To do this, you should look for the Buy/Sell option, where you will access all the cryptocurrencies available on the page. You must select yours, the amount of euros you want to buy and that's it. You only have to confirm the operation and your transaction will be completed instantly.
Accessing exchanges from a single platform
What is the value of cryptocurrencies in the different exchanges? Do you spend too much time logging in and out of the platforms?
There is no perfect platform, but you can visualize the behavior of multiple exchanges and DeFi platforms from a single intuitive environment to make your decision easier.
Find out more at Cresio!