5.
Despite all the benefits, you have to make some effort to start trading and to fully understand cryptocurrencies.
Purchasing coins for the first time might not be as easy as it seems. First of all, you have to make relevant research to fully understand how crypto works. You have to be aware of blockchain, public and private keys, credible crypto exchanges and, clearly, different coins as well. As you decide on the asset you want to invest in, you also have to choose an exchange or a wallet, comparing policies and transaction fees.
This preliminary work can be a bit hard for those who are not familiar with IT and fintech, especially for elder people for whom crypto is evidently not the best way to make micro payments. Still, our previous instruction on buying crypto could help those who want to make a first investment.
Once buying coins, the crypto investors have to understand the risks related to high volatility. Cointelegraph previously explained that predicting crypto price trends is a lot easier than it seems at first glance. Nonetheless, in case you want to transfer a significant amount of money or purchase services, you have to closely monitor the rates.
Finally, you have to understand that cryptocurrencies, despite all the industry’s efforts, are still exposed to massive hacks. Sometimes, the losses are caused by human mistakes, as it happened to QuadrigaCX — a major Canadian exchange whose customers lost the vast majority of their funds following the sudden death of company’s founder.
In summary, investors can benefit from more and more crypto-related offers that arise on the market as the industry evolves. However, it is absolutely necessary to invest wisely and not to treat crypto investments as “quick money.”
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.
