Have you ever heard of cryptocurrencies and thought about investing, but don’t know how to do it? You must have heard about the positive and negative points and possibilities of gains.
In today’s article we will analyze the virtual currencies, known as cryptocurrencies and tips on how to invest.
First, you need to be clear that the cryptocurrency market has a high volatility, that is, cryptocurrency prices fluctuate a lot.
It is common for a particular currency, vary the price from 10% to 20% in just a single day. This fluctuation can scare beginning investors. That is why it is also considered a high risk investment.
That said, when deciding to invest in cryptocurrencies, you need to have knowledge of graphic or technical analysis.
In addition, it is important that you follow the market news frequently to identify opportunities and risks before investing.
Your investment needs to be as rational as possible. That is why technical or graphical analysis is so important to make the best decisions before investing.
The cryptocurrency market can be subdivided into 3 categories, basically: Bitcoin , Altcoins and “ Shitcoins ”.
Investing in Bitcoin tends to be the safest choice in the cryptocurrency market.
However, some Altcoins represent excellent investment opportunities, having in the not-too-distant past, exponential valuations much higher than that seen in Bitcoin.
Finally, we advise you to analyze the market again, see the historical evolution of prices, look for news and technical analysis that clarify your doubts. Prioritize investing in more robust and mature projects, preferably in those cryptocurrencies that are among the first capitalization positions market share.