Investing in cryptocurrencies
Cryptocurrencies are booming. And that is not surprising, considering that cryptocurrencies can sometimes provide you with hundreds to thousands of percentages in return. But how exactly should you invest in cryptocurrencies and which cryptocurrencies are there? Continue reading to learn all about it!
How to invest in cryptocurrencies?
Cryptocurrencies like Bitcoin, Ripple and Ethereum are highly volatile. This means that the price can fluctuate a lot within a day, even within minutes in some occasions. From a trader’s point of view this is attractive, because volatility is what gives you trading opportunities. In fact, you can benefit both from upwards and downwards price movements. What you do need is an account with a broker that supports trading or investing in cryptocurrencies.
One of the best cryptocurrency brokers is Plus500. With Plus500 you can trade CFDs of cryptocurrencies without having to pay a fixed commission. In addition, this broker allows you to practice unlimited with a demo account. For example, if you want to trade CFDs in the Bitcoin, Ethereum, Ripple, or Litecoin, Plus500 is a good option.
- Unlimited practice mode with a free demo account
- Do not pay commissions on your investments
- Supports short selling as well
“76.4% of retail CFD accounts lose money”
But what exactly are cryptocurrencies?
Before you start investing in cryptocurrencies, it is important to understand what exactly they are. Cryptocurrency stands for encrypted money. You can see it as a digital form of payment where there is no central party that manages the currency. Cryptocurrencies can therefore eliminate the drawbacks of traditional money because they are completely traded via the internet and thus do not require expensive intermediaries, like banks. It is not possible to have physical crypto coins or notes.
What makes cryptocurrencies unique is their special functionality. The Bitcoin, for example, is a completely decentralized currency. This means that no bank is involved in a transaction. When you transfer money to another person, it will be transferred directly to the other person, without the interference of a financial intermediary. Because a third party is no longer needed for transactions, transaction costs will be reduced and the speed will be increased. This is of course very advantageous for everybody (except banks).
Some advantages of cryptocurrencies
- Cryptocurrencies are completely decentralized
- Transactions can be faster and cheaper
- Transactions are often difficult, if not impossible, to trace
- Cryptocurrencies are increasingly a valid means of payment
In which cryptocurrencies can you invest?
On globaltrader24.com you can find information about all major cryptocurrencies. In this article you can read briefly about cryptocurrencies in general. When you click on a specific cryptocurrency you will find more information about that specific cryptocurrency. It will show you the actual price of the cryptocurrency and explain how to start trading in that coin.