Ways To Succeed In Cryptocurrency Investments

Successful cryptocurrency investments require certain methods and strategies, just like traditional investment models. In recent years, thousands of investors have been evaluating their assets by using the advantages of cryptocurrencies in investment projects that can be considered successful in terms of risk management.

The  guide presents some basic steps to getting started in cryptocurrency. It aims to identify promising low-cost crypto projects and help you understand the market dynamics.

I have prepared a detailed study from earning through crypto staking to using leverage wisely.

What Are Cryptocurrencies And How Do They Work?

Cryptocurrency is a virtual currency with open-source code that works only with the payment system between the sender and the receiver and can be transferred without any supervisory, regulatory institution, or organization. There is no central authority in this system. 

Since cryptocurrencies are not connected to any center, transfer transactions are controlled by blockchain technology. Blockchain can be defined as a data file in which all transactions are recorded. With this system, it is possible to create decentralized currencies and control their operation over the Internet.

Cryptocurrencies, which are considered within the decentralized finance ecosystem and existed in blockchain networks, and investment models using this type of digital asset are a new type of investment model that experiences exchange rate fluctuations, just like currencies such as the dollar and euro, and brings short- and long-term profits to investors through these fluctuations.

What Are The Differences Between Bitcoin And Altcoins?

While bitcoin is the most known cryptocurrency, various altcoins also have crucial value for the cryptocurrency market and traders. Some of the bitcoins, which have an approximate supply of 21 million, have been produced, while others are still being made.

It is thought that the limited production of bitcoin will cause a shortage in the supply of bitcoin, and it is assumed that its value will constantly increase. Investors can buy and sell bitcoins anywhere and at any time if they wish. The purchased bitcoins can be traded, sold, transferred, or converted into other currencies.

Transfer transactions are made through a network connection and for a fee. Since the data is protected in digital environments, there is no theft, loss, or missing information. Investors can access information from the first record to the last record from the blocks whenever they want. 

In addition, Bitcoin has a very transparent structure since all bitcoin transactions made by people whose wallet addresses are known can be seen. To perform a Bitcoin transaction, a blockchain must first be created.

The blockchain, whose aim is to reach an ideal currency, is the basis for Bitcoin’s reliability. The chain in question is defined as a distributed ledger as well as being global. The names and currencies of those who use this chain are recorded in the cryptocurrency system.

To make bitcoin suitable for every field, it is necessary to bear a considerable amount of cost. For this reason, alternative cryptocurrencies have emerged and cryptocurrencies that promise high technology and different projects have entered the market and have been successful as much as bitcoin. One of the most important mechanisms that have emerged to solve such problems is ethereum. 

Ethereum, which emerged as an alternative, is open source, public, and distributed, as well as making smart contracts that hold data, carry value, and add new codes by running blocks. One of the fundamental advantages of ethereum is to develop and activate decentralized applications and solutions.

Thus, ethereum can be considered as the largest blockchain system after bitcoin. Miners, who are considered to be the decryption process in the cryptocurrency system, bring together and verify the latest transactions, causing the system to be more consistent. Miners are defined as people who produce some cryptocurrencies at any place or time.

How to Choose a Crypto Wallet And Use it Securely?

Choosing a reliable cryptocurrency exchange is essential. For this, the most reliable and comfortable online banking platforms that provide crypto wallet services should be investigated.

There are many wallet options available, including hardware, web, mobile, and paper. After creating a crypto wallet, you can use one of the following methods to buy cryptocurrency:

Cryptocurrency Exchanges: Cryptocurrency exchanges are platforms that allow users to buy and sell cryptocurrencies with fiat currencies or other cryptocurrencies.

To trade on cryptocurrency exchanges, you usually need to follow these steps:

• Register on a cryptocurrency exchange.
• Complete the identity verification process.
• Deposit fiat currency or another cryptocurrency to the exchange.
• Select the cryptocurrency you want and place a buy order.
• After your purchase transaction is completed, transfer your cryptocurrency to your wallet.

What Are Cryptocurrency Exchanges And How to Trade on Them?

Some cryptocurrency exchanges offer users the opportunity to purchase cryptocurrencies directly with credit or debit cards. This method can be preferred because it is fast and easy. However, it may have disadvantages such as high fees and low limits.

Cryptocurrency exchanges also offer users the opportunity to purchase cryptocurrencies via bank transfer. This method can be preferred because it is low-fee and secure. The disadvantages of this method include slowness and bank outages.

Cryptocurrency exchanges offer users the opportunity to purchase cryptocurrencies through payment systems. This method can be preferred because of its ease of use and prevalence.

How to Ensure Security And Avoid Scams in Cryptocurrency Investments?

There are many ways to securely maintain cryptocurrency investments. We can count some hot wallet examples such as mobile apps, web and desktop wallets.

Mobile application wallets are applications that run on your smartphones, provide access to relevant networks through service providers, and show your ownership of bitcoin and other cryptocurrencies.

Thanks to these wallets, you can make payments with cryptocurrencies anywhere, and you can make purchases and sales by directing your assets to cryptocurrency exchanges.

Cold wallets are physical wallets that do not have an internet connection. In other words, you can store them in encrypted chips that do not have internet access. They look like USB sticks.

You can enter your PIN code through two buttons on them, and you can confirm transfer transactions only after entering your PIN code and seeing it on the device’s screen. If you forget your PIN code, you can use the 24-word keyword group you used when setting up your device to reset it. They are safe from cyber-attacks.

The major danger for both hot and cold wallets is cyber attackers. Pirated software has the possibility of accessing your private keys in the digital environment. An application that you unknowingly install on your computer, even a link that you think came from a friend, can trap you in the hands of hackers.

They can even steal your information with social engineering, one of the most commonly used methods. While you think you have updated your computer, you can hand over your wallet to cyber attackers by installing pirated software yourself. There is also the encryption part of the matter. 

Pirated software, referred to as Trojan horses, can encrypt all the files on your computer and therefore your investments can disappear. Remember that cyber-attacks can come at any time when using these wallets.

You can see how many cyber attacks are carried out on cryptocurrency owners right now with a Google search. You have to continue to be careful every second in crypto investments’ projects.

See you in the next post,

Anil UZUN