Best practices for investing in cryptocurrencies


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Knowing how to invest in cryptocurrencies is not difficult as long as you follow some basic recommendations. Let’s have a look at some of them and how you should go about investing to enjoy Bitcoin, Ethereum, or any other cryptocurrency.

The first thing is to decide on which cryptocurrencies you are going to invest in to reduce risks. For beginner investors, it is recommended that they choose Bitcoin or Ethereum since they are not as volatile as others —this means, their price doesn’t usually soar or plunge very quickly within what is acceptable in crypto assets.


Investment Basics

  • Don’t invest money you can’t lose.
  • Don’t get carried away by offers that are too generous, that is, be wary of those who offer you extraordinary benefits.
  • Get trained and learn how the market works and the technology behind cryptocurrencies.
  • Control your emotions.


Stock market investor

How To Start Investing?

To invest in cryptocurrencies, the first thing you need is a digital wallet. There are several digital wallets and some not only work as such but also as an exchange. But, what are cryptocurrency exchanges?

Cryptocurrency exchanges are digital markets that allow the exchange of virtual currencies. The interesting thing about this type of market is that it maintains an exchange dynamic, where people interested in acquiring cryptocurrencies will see the different offers presented in the market.

Furthermore, these platforms allow the trader to instantly trade tokens, trade with leverage, currencies, cryptocurrency futures, etc. Some of the best-known exchanges are Coinbase, Binance, Kraken, or —and you are to choose one of these.

You also have decentralized exchanges (DEX), where operations are somehow more complex because you must have a wallet with which to interact with them. Some of them are UniSwap, PancakeSwap, Raydium, or Astroport.

There are many more virtual currencies, whose prices you can check on the Coingecko and CoinMarketCap websites.


Most Profitable Cryptocurrencies So Far

Bitcoin is still one of the main cryptocurrencies with the brightest future —despite the inherent volatility of these assets— since it does not have a central institution that controls the supply.

The other alternative, Ethereum, is the second currency in terms of capitalization, followed by Cardano, which has achieved less profit in the last quarter of 2021 but has great potential —it is deeply tech-based and allows faster transactions than Bitcoin.

Another famous currency is Litecoin, which also seeks to reduce transaction times. Finally, there are cryptocurrencies whose prices have increased more than 1000% such as Solana, Luna, Avalanche, Decentraland, and Uniswap, or meme coins such as Dogecoin and Shiba Inu.

Crypto Dash
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How To Buy Cryptocurrencies For The First Time?


There are several ways to buy cryptocurrencies. On one hand, you have the peer-to-peer market for the most experienced. On the other, there are international platforms like, Coinbase, or Binance.

Bitcoin graphic
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Invest In Bitcoins Or Others?

Opinions on investing in Bitcoin or other cryptocurrencies remain divided among experts.

Bitcoin is offered as the best alternative for the future of the crypto economy, but on the flip side, other cryptocurrencies in the market have had significant growth —in some cases well above that of bitcoin.

If we review the growth of other cryptocurrencies such as Ethereum, we will see it has grown more than Bitcoin in 2021 —other cryptocurrencies such as Binance Coin, Dogecoin, Avalanche, Solana, or Cake have shown greater growth in the same period.


Risks Of Investing In Cryptocurrency

Just as there are benefits, there are also downsides to trading virtual currencies. Before investing in cryptocurrencies, it is important to know these drawbacks:


  • Instability: Cryptocurrencies are high-risk investments whose value fluctuates to a greater extent than traditional assets. This exposes investors to the possibility of large losses quickly.
  • Little regulation: Since cryptos are a new investment asset, there are still several discrepancies in cryptocurrencies, exchanges, and agents.
  • Low protection: Cryptocurrencies are not linked to any government or company. This means your investment is not as protected as when you trade with financial institutions or traditional investment stakeholders.
  • Exposure to scams: Cryptocurrency payments are irreversible. If you are a victim of fraud or theft of your passwords, you can lose all your capital and there is no way to recover it.
  • Before investing in any cryptocurrency, take the time to research the digital currencies available and the storage methods that are best for you. To protect your investment, it is important to take the necessary security measures and diversify your portfolio.


As with other risky investments, cryptocurrencies come with a lot of volatility. Be cautious and avoid investing more than you are willing to lose. Remember that the key to generating returns on your investments and achieving financial success is educating yourself on the subject.

This article was produced and syndicated by

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