How to invest in cryptocurrencies
Each one has its own price and various fluctuations. The percentages of rise in recent months are immense, with cases of up to 18,000% in one year. Not all are valued like this, but it is enough to see that bitcoin has risen more than 400% since September 2019. No other investment alternative gives such margins.
However, it is necessary to clarify that just as they go up, they also go down. Quotes are very volatile and sometimes unpredictable. Without going any further, between Friday April 16, 2021 and Sunday 18, bitcoin lost almost 20% after Turkey banned cryptocurrencies, first, and then an electrical blackout occurred in China.
How do cryptocurrencies work?
Cryptocurrencies can be transferred to anyone through the Internet without the need for an intermediary, such as a bank. They can also be used to make payments. In Argentina its acceptance is slowly expanding and they can already be bought from alfajores to real estate.
It is important to note that the value of a cryptocurrency is constantly changing because its price is 24×7. In other words, to enter and exit, or use them in an operation, the right moment is key.
How to get cryptocurrencies?
Cryptocurrencies can be purchased with a credit card, through virtual wallets, trading sites, or even apps.
Another way is through a process known as “mining.” As it is about algorithms, it requires a wide network of computers working non-stop to solve mathematical problems until they find a cryptocurrency. The process is expensive so it is profitable only with proper engineering behind it.
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Pixabay
How to buy cryptocurrencies in Argentina?
Buying cryptocurrencies is not as complicated as it seems. You can do it through various virtual wallets. The procedure to invest is simple: you just have to load money into the chosen wallet, either from a bank account in pesos or a deposit through payment offices such as Easy Payment and Rapipago, and start investing.
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Pixabay
What is Bitcoin?
Within cryptocurrencies, Bitcoin is the best known. This was the first implementation of the concept. And it was the first decentralized payment peer-to-peer network that was powered by its users. In other words, it does not have a central authority, nor does it have intermediaries. Bitcoin is also a consensual network that allows a payment system and a completely digital currency.
How does Bitcoin work?
The Bitcoin network shares a public accounting, which is the blockchain, which contains each transaction processed. This allows you to verify the validity of each transaction. And the authenticity of each transaction is protected by digital signatures corresponding to the sending addresses: this allows all users to have full control when sending Bitcoins from their Bitcoin addresses.
Is it safe to invest in cryptocurrencies?
Cryptocurrencies are not insured by a government, as bank deposits are. This means that cryptocurrencies stored online do not have the same protections as money deposited in a bank account.
The cryptocurrency market allows the construction of various tools and services in a decentralized way. And precisely, from there derives the transparency in the process. This results from the chain of blocks and smart contracts that allow automating processes to generate financial instruments as it does not have third-party intervention.
Completely digital, the exchange uses strong cryptography that secures transactions, controls the creation of additional units, and verifies the transfer of assets using distributed ledger technologies.
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