How to Invest in Cryptocurrency?

Electronic money has proven itself; therefore, the interest in it continues to grow so much that you can even use it to play online casinos, just like on the website PlayAmo. Now, many are expressing their desire to invest in this area. But to do this, everything starts with the aims and control of the market. There are various ways to invest in cryptocurrency. This can be passive investing, day trading, etc. Apart from this information, this article teaches you about the choice of investment sites and the currencies you can bet on at the very beginning.

Investing in cryptocurrency: what are the means available?

As mentioned at the very beginning, they are diverse, and each presents itself with its specificity.

Hold

This term from the language of crypto and stock market companies means investing in cryptocurrency. In theory, this is the classic means of making cryptocurrency investments. It consists of exchanging currency by giving a sum in euros to acquire its equivalent in cryptocurrency. Then, keep the hope that the value of your e-currency will increase in the future. Indeed, the objective here is to make capital gains during the resale.

The hold is a little more accessible to beginners because of its basic principle. They must make crypto purchases to keep them in an electronic wallet called a wallet. It stands for a physical or virtual safe that can store and secure crypto assets. In addition, it is a strategy that allows the reduction of transactions and does not require an active presence on the electronic market.

Bitcoin (BTC) retains its rank as the most traded e-currency. Although widely used in some countries for acquiring goods and services, the practice remains weak in France. It is, therefore, difficult to use it in everyday life. This is why it remains a speculative financial asset dedicated to investment as a placement.

Nevertheless, it should be kept in mind that the risk of investing in cryptocurrency, and more particularly in BTC, is increasingly low. Moreover, the institutions are making a massive acquisitions. For example, by betting that the value of Bitcoin increases, if it ends up being the case, it is up to you to decide when you want to access your profits. You can win 25% or expect +100% off your bet.

Trading

It is possible to invest in cryptocurrency by trading. It consists of following and placing bets on a price’s fluctuations (high or low) through an online broker. Generally, this strategy is short-term. Followers of the cryptosystem day trade execute one or multiple market orders daily. So while holders are betting on the long term, traders are using daily electronic price volatility for immediate profits.

To take advantage of this system, it takes practice. If you enter the market without experience (lack of skills with poor understanding), you are not trading but playing the lottery. Here, the leverage effect can multiply the profits tenfold but imagine that the risks of loss are identical. One more reason to be seasoned before trading. Certain strategic notions such as range trading, scalping, arbitrage, and Bot trading are to be explored to evolve in the field.

Yield Farming

Known as “yield farming,” it is a method for setting up passive interest in e-money. Investing in cryptocurrency through Yield Farming is like lending money to a decentralized financial site. Cryptos are closed in a liquidity pool in the form of an investment fund or a shared smart contract.

The blocked sum provides liquidity to a decentralized financial structure that borrows and trades. Each time a user borrows crypto from this pool of liquidity, the repayment of the sum will be made with interest. Which will be distributed among investors having their funds in this fund.

For example, the Ethereum (ETH) exchange for Dai (DAI) is taxed by the payment of fees. This is sent to liquidity providers based on the investment made. So, as the capital granted to the liquidity pool is large, the rewards are large. It should be remembered that the strategies for doing yield farming are complex, and therefore, they are not suitable for beginners.

Which platform to choose to invest in cryptocurrency?

Given the success of the electronic money market, its players are constantly increasing. It is, therefore, appropriate to give you some advice to allow you to opt for a trusted site.

The Pacte law has established a framework allowing the regulation of sites specializing in the sale of cryptocurrency. This is to prevent as many as possible deviations observed within this financial market. It is, therefore, up to the AMF (Financial Markets Authority) to monitor the actions of PSANs (Digital Service Providers).

PSANs include financial intermediaries that offer services related to investing in crypto-assets. On this, a platform that is not secure and registered as such in France finds itself on the AMF blacklist. It is strongly advised to check if this institution recognizes the site before use.

• BTC is the most preferred digital currency by novices. Generally assimilated to an electronic version of gold, Bitcoin remains the cryptocurrency used in most global exchanges.
• ETH (Ethereum) is also an excellent crypto for investing in cryptocurrency. The blockchain system implemented by Ether is used in most non-centralized financial projects. The latter use it to issue smart contracts.

There are other digital currencies, also known as “alternative coins.” Their emergence is recent, but they remain reliable. SOL (Solana) and ADA (Cardano) are among them. Their development potential is high, according to the opinions of several blockchain professionals. Thus, over time, they will occupy a more important place in future large caps.