How to invest in cryptocurrencies
Buy cryptocurrencies
Guide to buying and selling cryptocurrencies
What are cryptocurrencies?
Like any currency, cryptocurrency can be used to purchase goods and services. But unlike other currencies, cryptocurrency is a digital currency and uses encryption technology to provide secure online transactions.
Cryptocurrencies can be sent anywhere in the world without the permission of intermediaries.
How to buy cryptocurrencies?
The way to buy cryptocurrencies is different depending on which one you want to buy. While some cryptocurrencies are traded on exchange houses – well established in the market and recognized for working with other types of investment – others rely on proprietary platforms and international accounts.
Every time you buy a cryptocurrency, it is stored in a cryptocurrency wallet that is unique to you. Most cryptocurrency investors buy and sell cryptocurrencies on exchanges because of their ease and security.
Advantages of using exchange houses to buy cryptocurrencies
- You don't need a wallet .In all exchangers you can buy and sell cryptocurrencies without the need to have your own wallet, as the platforms themselves include a wallet where you can store and send cryptocurrencies to whomever you want.
- You can use traditional payment methods .All regulated brokers accept payment methods that are used on a daily basis, such as credit or debit cards and bank transfers.
- Trading is fast and withdrawals are easy Trades are executed in seconds and withdrawals are received in your account instantly. No need to wait days to receive your cryptocurrencies.
How to buy cryptocurrencies on binance?
Binance is a popular exchanger in the world of cryptocurrencies and is the best place to learn how to buy cryptocurrencies. Binance offers a totally secure platform used by millions of people around the world; millions of transactions are made every day buying and selling cryptocurrencies from this platform. Here’s how to create a Binance account and start buying and selling cryptocurrencies.
1. Binance Registration
The first thing to do is to register with Binance. For registration and registration on Binance you will be asked for your personal data, to ensure security on the platform. Create an account now
2. Make the first deposit
With the account created, you will be able to buy cryptocurrencies. From Binance you can buy cryptocurrencies either by credit card, debit card or bank transfer. If you make the deposit by credit card, you will receive the deposit in your Binance account instantly; with bank transfers the deposit will arrive within 24 hours.
3. Buy cryptocurrencies
Once you have the money in your account you will be able to review all the cryptocurrencies offered by Binance so you can instantly buy any cryptocurrency. View cryptocurrencies
Binance application to buy cryptocurrencies
How to invest in cryptocurrencies?
When investing in cryptocurrencies you must decide whether you want to invest in cryptocurrencies for longer or shorter periods. There is a big difference in this approach, but if you do both correctly, you will get similar results in the end.
Investing in cryptocurrencies for long term
Long-term cryptocurrency investments, for example, require you to buy cryptocurrencies and keep them in your wallet for several years. With this investment strategy, the price of the cryptocurrency is expected to rise and multiply during that time, so that you make money at the time you sell the cryptocurrencies.
Investing in cryptocurrencies in short term
The short-term cryptocurrency investments, on the other hand, require frequent buying and selling of cryptocurrencies, sometimes up to several times a day. This cryptocurrency investment strategy is much more laborious but you can get good results in a shorter time. It is imperative to be aware of the market and price movements, explore new opportunities so that you can buy cryptocurrencies the lower the price is and sell them when they are worth the maximum possible in the same day or time period. This can be difficult and cumbersome, but the benefit is that you can make a nice profit without waiting years.
How are cryptocurrencies stored?
Cryptocurrency wallets
It is important to know the safest way to store the cryptocurrencies you buy and to protect them from fraudsters and hackers. Although most exchanges offer a wallet, we explain what are the different types of wallets to store cryptocurrencies, and their strengths and weaknesses in terms of security.
mobile wallets
Mobile wallets are used as a hot or cold storage solution. The advantage of mobile wallets for cryptocurrencies is that you can simply store coins and disconnect them from the Internet, being immune to any attack attempt over the Internet, unless someone steals your phone.
Online wallets
Online wallets are a type of wallet that is kept permanently online, also known as "hot wallets". Their biggest advantage is that they are always available, making them easily accessible via the internet. The main advantage is that they can be used quickly to withdraw money on the go.
Desktop wallets
Desktop (computer) wallets are similar to mobile wallets, and you can convert them to hot or cold storage by simply connecting or disconnecting them from the Internet. They can be even more secure than mobile wallets, as there are many anti-virus and "anti-malware" applications that can prevent hackers from entering and compromising your computer.
Hardware wallets
Hardware wallets are known as cold wallets and are considered the most secure form of cryptocurrency wallet available. They usually come in the form of a small USB stick and are only available on the Internet while connected to the computer. This makes exposure periods very rare and brief, and they are the best type of wallet for storing most of your cryptocurrencies.
How does the cryptocurrency market work?
Like other investments, the buying and selling of virtual currencies works through transactions brokered by a platform, if the person does not perform the mining himself.
To perform this transaction, a certain amount is transferred to the account of a buying and selling platform and converted into a balance to buy and sell cryptocurrencies. From the daily volatility of cryptocurrencies, it is possible to trade cryptocurrencies, as well as in the stock market, making a profit on the difference between each value.
The main difference of the cryptocurrency market is the fact that it is not regulated. Thus, it is possible to make transactions anonymously and without leaving traces.
Thanks to the volatility of cryptocurrency prices, it is possible to make profits
What influences the price of cryptocurrencies?
A common question from many investors is about the main factors that influence the price of cryptocurrencies. Volatility is influenced by several factors, which directly affects the price and usage of these cryptocurrencies.
Cryptocurrencies can have a sudden increase or decrease in price in a matter of minutes. Here are the main reasons why the price of cryptocurrencies change.
The political situation
The political scenario strongly affects various sectors of the economy and the national currency, and also the price of cryptocurrencies. This influence occurs because some investors use them to hedge conventional currency fluctuations. In addition, when news about economic crises circulate, some people start buying cryptocurrencies to protect their assets.
Dollar volatility
The value of the dollar strongly influences the economic scenario and various currencies, including cryptocurrencies. On some platforms, the dollar is taken into account to define the price users can pay.
Technical problems
Cryptocurrency systems undergo upgrades that seek to improve processes, security and bugs that hinder investors. Both strengths and weaknesses can influence the price. Media news about attacks or vulnerabilities in some cryptocurrency can cause these coins to devalue a lot, as people will be afraid to be part of that cryptocurrency.
The law of supply and demand
Another factor that determines the price of cryptocurrencies is the law of supply and demand. To set the price, a line is drawn between the demand of buyers and the supply of sellers. People's interest in buying cryptocurrencies and using them in their transactions has increased considerably. Therefore, volatility is strongly influenced by this increased interest. The higher the demand, the higher the price set, and the lower the interest, the lower the value.
Cryptocurrency Frequently Asked Questions
We solve your doubts
List of cryptocurrencies
Bitcoin
It is a cryptocurrency and an online payment system based on an open source protocol and is independent of any central authority. A Bitcoin can be transferred by computers and smartphones without recourse to an intermediary financial institution.
Ethereum
It is a digital currency and also a distributed computing platform that can execute smart contracts. Ethereum stores transaction records in a kind of public, distributed, encrypted spreadsheet, the blockchain. Ethereum's differentiator from the other altcoins and pro Bitcoin is that Ethereum intends to use blockchain technology and smart contracts for "everything" that can be programmed.
Binance Coin
Binance Coin is a cryptocurrency created by the Binance exchange in 2017. It is a token that allows merchants to get discounts on Binance, it is used to pay transaction fees on Binance blockchains.
Tether USD
Tether is a cryptocurrency that aims to avoid the volatility of cryptocurrencies. Its price is always pegged to the US dollar.
Cardano
Cardano (ADA) is a decentralized public blockchain and open source cryptocurrency. It holds promise for the development of a smart contract system that is more advanced than existing protocols.
Solana
Solana is an open source cryptocurrency created by the Solana Foundation, based on the blockchain, which offers decentralized financial solutions (DeFI). Its blockchain allows the creation of decentralized applications (DApps).
XRP
XRP (Ripple network token) is the name of a digital currency and an open source distributed open payment network. The goal of XRP is to allow people to break free from the walls created by financial networks, credit cards and banks that restrict access with fees.
Polkadot
Polkadot is a project created by the Web3 Foundation, a Swiss foundation created with the aim of making available to users a decentralized and fully user-friendly web.
Shiba Inu
Shiba Inu is a cryptocurrency based on the Ethereum blockchain and is considered by many to be a "rival" to Dogecoin. Both have the Shiba Inu dog breed as their mascot.
Doge Coin
It is a cryptocurrency with a logo similar to the Shiba Inu breed dog from the meme "Doge". Created in 2013 as a joke currency, it has grown rapidly. Although it is rarely used in commercial applications, it is widespread as a tipping system on the Internet.
USD Coin
USD Coin is a cryptocurrency created by Circle, an online payment platform whose subsidiary is Poloniex, with the aim of being stable, to compete with Tether.
Litecoin
It is a cryptocurrency and an online payment system based on an open source protocol and is independent of any central authority. A Litecoin can be transferred by computers and smartphones without recourse to an intermediary financial institution. Inspired by and technically almost the same as Bitcoin.
Bitcoin Cash
Bitcoin Cash is a cryptocurrency created from a fork of Bitcoin. It uses the SegWit protocol. It does not change compatibility with current solutions and increases transaction capacity eight times It also protects transactions from malicious third parties.
Stellar Lumens
Stellar is a decentralized consensus platform made to support transactions of any type of currency. As it does not use mining, all coins were created when the network started.
VeChain
VeChain is a Blockchain-as-a-Service (BaaS) platform powered by Ethereum. It aims to be used in an enterprise context, creating a distributed and trust-free ecosystem that enables a transparent flow of information.
Tron
TRON is a decentralized blockchain-based protocol that aims to build a global entertainment system with free content and distributed storage technology. The protocol allows each user to publish, store and own data for free.
Ethereum Classic
It is a public and open source distributed smart contract computing platform. It has tokens called classic ether that can be transferred between participants, stored in virtual wallets and compensate participating nodes for the computation performed.
Tezos
Tezos is a new platform for smart contracts and decentralized applications. The new $50 million Tezos VC fund will focus on investing in startups and platforms using the Tezos platform.
Monero
It is a digital currency based on the CryptoNote protocol. Although it is similar to Bitcoin, it has some differences to maintain the anonymity of its users. Monero creates a unique address for each transaction that only allows the full transaction information to be seen by the person who received the deposit.
EOS
EOS is a decentralized blockchain-based operating system that allows you to create blockchain applications in a manner similar to web applications.
IOTA
IOTA is a cryptocurrency based on Tangle and not on blockchain. In IOTA the two are not different, so they all have the same power. It has a lightweight and modular structure to easily integrate into electronic equipment, allowing automation and M2M (machine-to-machine) market formation.
Bitcoin SV
Bitcoin SV is a cryptocurrency based on Bitcoin Cash. SV stands for Satoshi Vision, Satoshi's vision. It aims to focus on the original vision of Bitcoin's creator, i.e. to replace all payment systems in the world with a better user experience, lower costs for merchants and truly secure security levels.
NEO
NEO is a cryptocurrency of Chinese origin with iteration to Ethereum smart contracts. It has a unique blockchain algorithm that improves on Ethereum's model. It supports decentralized trading, asset identification and digitization.
ZCash
Zcash (ZEC) has been online since October 28, 2016 and was virtually the first anonymous cryptocurrency with extensive online press coverage. It hides the shipping address, payee address and value of transactions. To access this data, the user is required to possess the viewing key.
Bitcoin Gold
Bitcoin Gold is a fork of Bitcoin with the goal of completely decentralizing the Bitcoin network from the monopoly mining industry.
Dash
Dash is a privacy-focused cryptocurrency with instant transactions based on Bitcoin that allows anonymity in transactions. With Dash the anonymization technology makes tracking impossible, through a mixing protocol that uses a decentralized network of servers called Masternodes.
ICON
ICON is a blockchain platform that allows the creation of decentralized applications (DAPPS) as in Ethereum and NEO, with Interchain (interoperability of blockchains through its protocol), artificial intelligence (to ensure that all nodes contributing to the platform are rewarded fairly and do not have certain powers over the distribution policy).
True USD
TrueUSD is a cryptocurrency created by the Bittrex exchange. It was developed by the TrustToken platform and is pegged to the US dollar exchange rate.
ARK
ARK is a decentralized ecosystem made to increase user adoption of blockchain technology. The ARK development team states in its white paper that its goal is to bring blockchain to the masses by creating a "fast and secure technology hub" with "practical services for real people."
Bitcoin Diamond
Bitcoin Diamond is a cryptocurrency whose main objective is to reduce costs by reducing transaction fees and the cost of participation. The total amount of Bitcoin Diamond is ten times that of Bitcoin.
Basic Attention Token
Basic Attention Token is a cryptocurrency with the goal of reshaping the online advertising segment with ads that are more relevant to the user and at the same time can bring positive results for advertisers and publishers. The user will be rewarded with MTDs for attention to ads and content and site publishers will receive MTDs based on the levels of attention achieved.
Nano
Nano, formerly Raiblocks, is a cryptocurrency with commission-free transactions. It is not minable because it has already reached its maximum amount of 133,248,290 nanos.
Populous
Populous is a trade finance and invoicing platform built on the Ethereum blockchain. Through XBRL, smart contracts, stable tokens and more it can create a unique global trading environment for investors and sellers to trade invoices from around the world.
Digibyte
DigiByte is a decentralized open source cryptocurrency. Its blocks are produced every 15 seconds, making it 40 times faster than Bitcoin. It has an application layer to create apps on its blockchain such as and smart contracts, a digital property layer to provide security and administration.
Aeternity
Aeternity proposes to create a next-generation blockchain technology with several features that address current "problems" in the system. The developers claim that the main goal is to improve existing altcoins by making transactions more secure and faster than others.
Lisk
Lisk is the first coin to use modular side chains. These are modules that serve as the basis for its design. This allows anyone to use it to create decentralized applications. The language for building the applications is JavaScript.
Golem
Golem is a cryptocurrency that aims to be a decentralized supercomputer that everyone can access. It is realized by combining the computer processing power of its users. Golem is capable of processing a variety of tasks, from graphics processing to machine learning and scientific computing.
Electroneum
Electroneum is a cryptocurrency designed for mass adoption, with instant payments and app-based mobile mining. It has signed agreements with global mobile networks.
Bitshares
BitShares is a software that provides a "multi-user distributed database with update permissions managed by predefined rules and also public key encryption".
Nem
NEM (XEM) is a cryptocurrency with low transaction costs, allowing a large number of transactions per second. It is also capable of performing smart contracts and is fully decentralized.
Komodo
Komodo is a secure and anonymous cryptocurrency created from a fork of ZCash. It supports zero-knowledge proof-of-stake protected by Bitcoin hash rate. Its platform is inspired by Bitshares and Steemit.
Siacoin
It is a decentralized data storage platform. Its users from anywhere in the world can contribute space to store it on their computers and form a decentralized network. Anyone who owns Siacoins can rent storage space by paying those who provide this space.
OMG Network
It is a cryptocurrency and an online payment system based on an open source protocol and is independent of any central authority. A Bitcoin can be transferred by computers and smartphones without recourse to an intermediary financial institution.
Bytom
Bytom is an intermediary that connects generalized blockchains with specialized blockchains. Its mission is to bridge the digital and physical worlds and build a decentralized network where physical and digital assets can be recorded and exchanged.
Reddcoin
ReddCoin is an open source digital currency derived from Litecoin. It seeks to integrate into all social networks. It aims to be "the social currency that enriches people's lives by making digital currency easy for the general public".
Ontology
Ontology is a public blockchain infrastructure platform that enables its developers to leverage a trusted decentralized ecosystem and create dApps. It is backed by Chinese blockchain technology company Onechain.
Pundi-X
Pundi X is a cryptocurrency that emerged from an Indonesian company with the goal of bringing cryptocurrencies to everyday transactions with ease and convenience.
Decred
Decred es una criptomoneda lanzada en febrero de 2016 por un antiguo grupo de desarrolladores de Bitcoin. Su objetivo es abordar las preocupaciones sobre la centralización del poder de Bitcoin. Tiene un número finito de monedas, un sistema de gobernanza descentralizado y un lugar para compartir tus opiniones.
Steem
Steem is a cryptocurrency generated by creating content on the blockchain-based social networking platform Steemit. Everyone can earn it by creating and curating content for this platform.
Qtum
Qtum is an open source digital currency that can execute smart contracts with a Proof of Share consensus mechanism. The project was created by Patrick Dai, who holds a PhD in computer science and previously worked at Alibaba.
Dentacoin
Dentacoin is a cryptocurrency created for the dental industry so that its patients can buy dental treatments and clinics can buy dental equipment.
SALT
SALT is an automated credit platform that offers security and ease of use. Its goal is to get you to stop talking about the traditional credit and lending model and adopt your modality. The filling out of huge loan application forms and the long wait for approval would be forgotten.
Verge
Verge is an open source ledger focused on privacy and verified by Blockchain. It is structured with decentralized transactions supported by a global community.
Status
Status is intended to be a messaging platform based on the Chinese WeChat application. The Status Network Token (SNT) will be used to purchase services on the network.
Zilliqa
Zilliqa is a cryptocurrency that seeks to solve the scalability issues that arise from blockchain technology through fragmentation. It also supports decentralized applications.
Stratis
Stratis is a blockchain platform aimed at financial institutions and other companies that want to create business solutions using distributed computing technology.
Waves
Waves is an open source cryptocurrency with a blockchain protocol based on Bitcoin-NG that relies on an innovative transaction processing approach to improve latency and bandwidth without interfering with other properties. This strategy allows for near real-time transactions, hundreds of transactions per minute.
Wanchain
Wanchain has the long-term goal of being a distributed bank. Its infrastructure is based on digital assets: cryptocurrencies and tokens. Even those who do not have a bank account will be able to enjoy the exchange of securities and digital assets, lending, transaction settlement and payment by credit.
