How to invest in cryptocurrency with Tokenexus?
Cryptocurrencies have been a thing for quite a while. For the short time of their existence, they managed to widely spread around the world. People, as in most other matters, have found a way to make regular profits on these new coins.
One of the ways to invest in cryptocurrency is by using a digital coin exchange platform like Tokenexus. How do you do it properly? Read on to find that out!
What can you invest in with Tokenexus?
Currently, Tokenexus lets users invest in Bitcoin and Ethereum. These are two of the most popular coins among all cryptocurrencies. Their prices often change, and this makes them an interesting investment option.
In the nearest future, it is planned to increase the number of available cryptocurrencies up to 20. This will bring even more opportunities for people interested in investing funds in other coins.
Where is cryptocurrency stored?
Bitcoin and other cryptocurrencies are stored in virtual wallets. There are two types of wallets: software and hardware. The former is used for active trading, while the latter is mostly used to store currency without spending it.
For investments, it is recommended to use a software wallet. There are many kinds of them on the web. The most popular, however, are Electrum, Exodus, Jaxx Liberty, and others. You can use any option that suits your needs.
Hardware wallets are best if you need to store your cryptocurrencies in a safe place. There are “hot” wallets that are connected to the internet and “cold” wallets that are not connected to anything. The latter is the safest type because it cannot be hacked. Examples of hardware wallets are Ledger and Trezor.
Tokenexus provides a free mobile Crypto Online-Wallet that is used to keep your exchange currencies in one place. The service is also working on creating a version of its own crypto wallet for web browsers. It will soon be available to all users.
How to invest in cryptocurrency?
There a several steps you need to follow to start investing your funds in cryptocurrency.
Choose an exchange
The first thing all traders do is choosing an exchange. In our case, we will use Tokenexus. It is an exchange that has been online since 2018 and has many positive reviews from investors in different countries.
Choose the currencies to invest in
Currently, it is possible to invest in two currencies:
In the near future, the exchange will expand the number of available currencies to 20.
All currencies are stored in the Tokenexus wallet.
Diversify your investment
Everyone knows the saying “do not keep all eggs in one basket”, right? The same goes for financial investments. By dividing your investment money between different coins, you minimize risks. Cryptocurrencies are very volatile, so you should always be aware that losses are possible.
Manage the risks
The market has ups and downs. You should be prepared for any situation. First of all, do not invest more money than you can afford to lose. This will prevent any emotional decisions and acts in the future. In addition, you could save some money for a future opportunity and buy a currency when its price is the lowest.
Please note that in any legit coin exchange, you will be requested to identify yourself. This is a legal requirement for all similar financial services. If you skip the identification process, you will not be able to make an investment or withdraw funds. Keep that in mind before investing any sum.
What should you know before investing in cryptocurrency
Any investor must learn more about the currency he or she plans to invest in. Otherwise, they have very high risks of losing funds for nothing. Here are four things you need to know about cryptocurrency before you start.
The reason cryptocurrencies attract and at the same time scare away investors is their volatility. The price constantly moves upwards or downwards. For example, in 2017 the price swung from $900 up to $20 000 per coin. Now, imagine the losses and profits many traders have made during that time. The risks are rewarding, but they still have a dark side.
2. An unknown field
Cryptocurrency is a completely mysterious field for most people. Nobody knows who really created Bitcoin. Most investors do not even understand the way crypto works. To make it simple, try explaining cryptocurrencies to a 10-year old. If you cannot do that, then you have to learn more yourself.
3. Fraudulent activity
One of the reasons cryptocurrencies are so popular is the possibility to stay anonymous while using them. Banks and governments cannot regulate this field, and this makes it a popular payment system for the black market. This does not mean that cryptocurrencies make you a villain and are bad. The fact is that people just use crypto for staying anonymous when they need to.
4. Unproven rate of return
In a way, investing in cryptocurrencies could be called gambling. They are not connected with any regulatory standards, the changes or returns cannot be predicted, and there is no pattern that would represent their growth or fall. Although experts make predictions, they often are very inaccurate.
Should you invest in cryptocurrencies?
Nobody will answer this question for you, it is too individual. Cryptocurrencies come with both high risks and rewards. If you have spent some time researching the topic and have some money you can afford to lose, then you should give it a shot. Develop a strategy, manage your portfolio, and keep an eye on the market. Eventually, your efforts will be rewarded.
Is cryptocurrency profitable?
In a way, yes, cryptocurrency is profitable if you do everything correctly. Here is why:
- High liquidity
- Constant growth
- Future development prospects
- Developer’s reputation
However, nobody can tell you the precise percentage you will earn from cryptocurrency. A lot depends on the situation. For instance, in one second you could earn 200%, and the next instant you could lose 10%. This is not like the stock market where you can afford making a passive investment without constantly monitoring it. With BTC or other coins, you always have to watch the markets for potential profits.
What are the best coins to invest in 2020?
Although not all of these currencies are currently available at Tokenexus, you should keep an eye on them once they are added to the exchange. They are considered to be the best investment option for this year:
- Bitcoin Cash
These coins are leading the cryptocurrency market for a few years now. Each season, they prove themselves being the optimal investment choice. You can have a look at their performance for different time periods and see for yourself.
Here is an example of how Bitcoin has performed in 2020 so far.
As you can see, the price goes up and down. This creates many opportunities for making profits.
Remember! Do not let your emotions overwhelm your mind because that is how most traders lose all their money.