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How to invest in cryptocurrency

10/15/2018
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  • for_beginners
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Although the price of digital assets is in a downtrend, some experts consider this situation as the most attractive for purchases. But before that, it is necessary to answer the important question - what cryptocurrency should I mine, acquire or find another way to invest?

Ways of cryptocurrency mining

Now experts name three most attractive methods of mining digital coins. The simplest of these is an asset acquisition transaction through the exchange. But in this case, the investor becomes the owner not of coins, but of financial contracts for them. It allows:

  • reduce costs for operations;
  • get additional services, use of credit leverage and the possibility of opening short positions;
  • time-tested secure storage mode;
  • cooperation with a well-known financial company;
  • support of consultants and technical specialists.

This will help answer the question - should I invest in a cryptocurrency for a long or short term. As a rule, analysts of brokers send recommendations on the choice of an asset. Another important advantage of this investment method is the low amount of initial capital. To try oneself in the role of a specialist in cryptocurrency, a few hundred pounds are enough.

Cryptocurrency mining

It is one of the most difficult options and costly at the initial stage. To mine coins on your own, you will have to buy expensive equipment and resolve the issue with its placement. To reduce the payback period, the farm or Asic should work around the clock. This is not very convenient if there is no possibility to allocate a separate room for business.

At the same time, the room must be set to the appropriate humidity; it is required to monitor the temperature regime. But this is not the most difficult. The programmed algorithm during the mining of coins automatically changes the complexity depending on the connected capacities. If a large number of techniques mine Bitcoin, the profitability of mining decreases. But at that very moment, the number of Ethereum mining devices could be reduced. And then this coin becomes more profitable.

Therefore, the investor will have to constantly monitor the market situation. Only in this way he can quickly repay the investment. In the current environment, the payback period of 8-10 months is considered to be a good profitability. After this period, the period of renewal of the technological process begins and the value of the hash rate falls.

But with this method of capital allocation, it is very easy to find out how much you should invest in cryptocurrency. The number of funds will directly depend on the value of the farm.

Purchase of cryptocurrencies on the exchange house or in the exchange office

If the investor decides to buy coins, he will need to contact the exchange office or a specialized exchange. Now, this is a proven procedure that does not require specialized knowledge.

Registration takes only a few minutes, after which the investor will have at his disposal a digital wallet. When buying an asset, funds will be credited to it. The biggest problem with this method of storing funds is the constant hacker attacks on trading platforms.

The security systems on them are far from ideal; it sometimes leads to negative consequences for the client’s account. Although such cases are rare, there is a risk of hacking. To minimize it, you can independently open the wallet on the official website of the coin. You can transfer there the cryptocurrency received after the exchange.

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