When we think about investing in cryptocurrencies, the first thing that comes to mind is the security of the operation and where to invest. Due to the past of frauds and scams, many people fear trading in cryptocurrencies. In this video, I will show you everything you need to know to start buying cryptocurrencies. Also, I’ll introduce you to the TOP 10 Cryptocurrencies in the market cap.
Enjoy and subscribe to our channel to learn all about investments and cryptocurrencies in more videos like this one. See also our course in the description. As I said before, when we think about investing in cryptocurrencies, the first thing that comes to mind is the security of the operation. But trading cryptocurrencies has never been easier and safer than it is today, as there are safe and specific platforms and brokers for that.
There are several ways to buy and sell cryptocurrencies. You can buy cryptocurrencies through a stockbroker or through platforms that behave like currency exchanges. For this, you must choose from the various options available. The main platforms that operate with the purchase and sale of cryptocurrencies are Binance.
Crypto.com. Gemini. Coinbase. Robinhood. Etoro. On most of these platforms, you pay a fee for each transaction. It is important that you compare rates between them as they can vary a lot. These platforms are easy to use and perfect for beginners. Once you’ve chosen the platform that’s most interesting for you and opened your account, you’ll need to put money into it.
This operation can be done through a bank or your credit card. It’s important to know how much to invest. Don’t put so much money into cryptocurrencies. Generally, the recommendation is that your cryptocurrency portfolio represents 1% to 5% of your investments. This is because cryptocurrencies are still very volatile and very recent technology, suffering large price variations.
Today there are more than 2,000 cryptocurrencies. To assess which cryptocurrencies to buy, consider making a varied portfolio of some of them. Prefer the most traded and known cryptocurrencies. Bitcoin is the oldest and with the biggest market cap. To evaluate cryptocurrencies you can use some metrics. Don’t think you can guess the market’s unpredictability, you won’t.
Using metrics is the best way to get good results. Also, prefer to keep your cryptocurrencies for a long time. Selling and buying quickly can cause you losses, as well as being affected by the emotional factor. The main metrics for evaluating cryptocurrencies are shown next. Circulating Supply. Which is the approximate number of that coin that is circulating in the market; Trading volume.
Which is the volume in 24 hours that the cryptocurrency has been traded. It gives the idea of cryptocurrency liquidity. Another metric for evaluation is NVT: Network Value to transactions ratio. The smaller the better. Market cap divided by the daily transaction volume. Market Capitalization. That cute name is just the amount of coins in circulation times their current price. The bigger the better. Shows the strength of the cryptocurrency; As promised, I will show you the top 10 cryptocurrencies in market cap.
They are Bitcoin; Ethereum; Tether; Binance Coin; Cardano; XRP; Dogecoin; USD Coin; Polkadot; Uniswap; In addition, it is important to pay attention to quality indicators of the entity that created the cryptocurrency, such as reputation, website accessibility, availability of information, news, among others.
Read More: The Future of Bitcoin That You Must Know