He wants invest in cryptocurrencies and learn how they work? Then this article is for you! Every day new technologies are created and updated, in the world of investments this is no different.
It's been a few years since cryptocurrencies moved the financial market and are increasingly gaining space and interested people. However, taking a chance on this investment without understanding at least a little bit of it is risky.
If you want to understand a little more about what cryptocurrencies like bitcoin and others are, follow the article below. In it we will show you the main information about this investment and how to start in this market.
What are cryptocurrencies and how do they work?
Cryptocurrencies are virtual currencies that do not belong to any country or organization. Bitcoin is the best known of them, and both it and other currencies have values that can be converted, when bought or sold, to other currencies such as the dollar, real, or euro.
Cryptocurrencies are created through mining on the blockchain, a secure network that stores various information about people who use cryptocurrencies. This blockchain works as a public and very secure database, where it is not possible to change information.
Cryptocurrencies were widely used as a currency for products and services, but in recent years they have also become forms of payment. Investing in cryptocurrencies has become very promising, as its value is high and the technology used is very safe.
What are the main cryptocurrencies on the market?
The first and best known decentralized cryptocurrency, that is, without belonging to a country or organization, was bitcoin more than 10 years ago, in 2009. works only with fractions of it.
Over the years, the relevance of cryptocurrencies has grown and new ones have been created. Who wants invest in cryptocurrencies today there are several other options besides Bitcoin. Here are some of the most famous in the financial market:
- Bitcoin (BTC): It is the best known among cryptocurrencies, even those who do not use it have heard about it. It has high value, but it is volatile, so it can reach high peaks but also fall very quickly;
- Ethereum (Ether): Ethereum is one of the main competitors of bitcoin. It is a platform that has its own currency, Ether. This platform runs smart contracts and makes decentralized applications using its own blockchain;
- Binance Coin (BNB): BNB was launched in 2017 by one of the largest cryptocurrency exchanges, Binance. It is worth around 2 thousand reais, a much more accessible value to work with and is used within exchanges, cryptocurrency brokerages;
These are some of the most used cryptocurrencies, but there are several others such as Ripple (XRP), Tether (USDT) and Cardano. It all depends on the amount you are willing to use and whether you are going to use it in brokerages, to buy and sell or as payment for services.
Advantages and disadvantages of investing in cryptocurrencies
For invest in cryptocurrencies the ideal is not to be a beginner in the world of investments. This is because the value of this investment changes very quickly. So if you already have some other investment and want to start in cryptocurrencies, know that it has many advantages, but also some disadvantages.
Main advantages of cryptocurrencies:
- They have great potential for profitability;
- You can have a more diversified investment portfolio;
- Easy accessibility for investment
- Cryptocurrency is an investment that is gaining more and more popularity;
- Blockchain security is recognized;
- Privacy of your information;
Disadvantages:
- Cryptocurrencies have high volatility and change quickly;
- Unfortunately, many people use cryptocurrencies to apply scams and fraud;
- There is still a lack of government regulation.
Secure application to invest in cryptocurrencies
One of the best apps for invest in cryptocurrencies currently it is Binance. As we mentioned before, Binance is one of the largest cryptocurrency brokers in Brazil, and with the app it is easier to invest from anywhere.
Through Binance app you can invest in over 200 cryptocurrencies, including Bitcoin. The app can be a good way to start this investment, because with it you already have more security, as you will use the brokerage.
Currently, the Binance app has more than 50 million downloads on the Play Store platform. It was released in 2017 and its size is 150 MB. You can also find the app available for download on the App Store for iOS.
Final considerations
Starting a new investment is risky, so it is necessary to gather enough knowledge before and to invest in cryptocurrencies is no different. This type of investment can be very advantageous for those who know the area,
But always have a separate value to invest and not all your money. For other articles like this visit the other categories on our site.
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