You should remain anonymous if you decide to invest in crypto (bitcoin, for example). And here is the rather unpleasant catch: BTC, contrary to what many people think, is not a personal cryptocurrency asset. Your transactions in this coin’s blockchain can quickly be declassified: attackers can find the amount of currency in your wallet, which can be potentially dangerous.
If you are a significant investment and keep quite a large number of bitcoins, you may get robbed. That’s why it makes reason to use a service (mixer) that will help hide the exact amount of currency in your wallet. An excellent mixer for bitcoin is https://yomix.io. It will give you the highest level of security possible – significantly if you raise the commission to the maximum and connect a random number of transactions.
Before we get into the subject of investing in cryptocurrency assets, we first need to dive into the terminology. A cryptocurrency is a digital asset with no physical embodiment or single center to control it. The currency unit can be either a coin or a token, depending on the type. This virtual money is located and works in a chain of blocks, each of which holds information. These blocks can be found in different parts of the world; therefore, it is challenging to hack such a system (at least compared to conventional servers, where the data is located in one place).
But how to invest?
First of all, it is worth determining the method of investment. They come in different forms, and here are just a few of them.
This option is relevant for those who do not want to wait long for investment returns. The strategy involves the following two consecutive steps:
- Preparing capital and splitting it up.
- Buying cryptocurrency with pieces of money.
The main advantage of short-term investments is medium to high liquidity; that is, the investment will be realized one way or another. The most important thing is to ensure that the cryptocurrency does not dramatically lose value.
For the most part, this option is about something other than investing, as it will require quite a lot of effort. However, it is a possible option for investing in cryptocurrency that can come in handy for beginners. The whole process is the buying and selling of cryptocurrency. But not just buying and selling, but solely for profit. That is, you should buy cheaper and sell dearer. However, any good trader should constantly monitor the news, the rate of cryptocurrency, and the economy as a whole. Trading allows you to earn more and faster investments, but it requires much more effort and knowledge.
How to choose a cryptocurrency to invest in?
Choosing the right cryptocurrency is a complicated question. One can only say what indicators you should be guided by when choosing a coin:
- The opinion of expert investors.
- The scope of application of the cryptocurrency.
Generally, investing in cryptocurrency can be profitable, but it also comes with certain risks. Investors should be cautious and scrutinize each investment before making it.