investing in cryptos

Expert advice to invest in cryptocurrencies

The success of crypto-coins is at the rendezvous and even arouses the craze of neophytes. However, investing in these virtual currencies remains risky and it is better to learn before launching investing in cryptos. If you want to buy Bitcoin or Ethers, here are some useful tips.

In recent months, the price of cryto-currencies like Bitcoin is flying. Exceeding the price of an ounce of gold at the beginning of 2017, at 1130 euros, the price of Bitcoin fluctuates for example today above 3000 euros. What interest always more investors who, often misinformed, can forget that the price of these currencies remains very fluctuating and it is possible to lose big. To get started in the Cryptocurrency adventure by limiting the risks, here are some expert tips that could prove very useful.

UNDERSTAND THIS CURRENCY LIKE NO OTHER

Just because crypto-currencies are virtual does not mean that their quantity is unlimited. In particular, to avoid reproducing the subprime crisis, “a limit of 21 million bitcoins was set at its creation” which gives the currency, “the same peculiarity as precious metals” as explains Manuel Valente, director of La House of Bitcoin. “Nobody can handle this amount; it makes it a rare and stable product.” So far, 16.2 million Bitcoins have been created.

ANALYZE ITS UNSTABLE COURSE

“Virtual currencies are highly speculative products,” says Christopher Dembik, head of macroeconomic research at Saxo Bank. When investing in the CAC 40, we know that the price drops or increases according to the evolution of the company. These digital currencies, on the other hand, are not backed by fundamentals or an economic reality “. For the specialist, investing today on it, is tantamount to a gamble.

He recognizes, however, that forecasts of their prices are possible. These are closely related to financial and geopolitical events. “When there is instability related to elections or economic measures of a country for example, the prices of cryptocurrencies skyrocket,” says Manuel Valente.

It is therefore important to stay abreast of current events that may affect their course, but also to study the past of these often very recent currencies.

NEOPHYTES, DO NOT START ALONE

“For those who do not know anything about the stock market, it’s better to start with classics and stable products without much risk,” advises Christopher Dembik. This helps to understand the mechanisms. “There are also sites and blogs where people offer their analysis on the evolution of the prices of the crytomonnaies completes the director of the House of Bitcoin.

“To buy or sell virtual currency, you can go through an online platform that works exactly like a currency trading platform,” continues the director. The problem is that the interfaces are often complex with graphics and a lot of buttons. For those who do not know anything, it is best to go to a specialized physical currency exchange office. Even though the commission will be higher than on an online platform, office agents will be able to give you advice. ”

PAY ATTENTION TO SCAMS

And yes, who says internet says hacker, scam the end of the world and hacking. “There are thousands of crypto-currencies currently in circulation. Some are very well built and have a future like Ethereun or Litecoin. Others are scams. Very well done sites are trying with very attractive messages to get them to buy, but behind there is nothing? In general we must be wary of platforms that promise you huge profits with zero risk, “warns Manuel Valente.

It is also important to know that there is no guarantee that the transaction platforms will display the right values. Remember to take a tour on different of them to compare rates.

BE AWARE OF THE RISK

“The Bitcoin is not regulated, so you can fall on platforms that allow you to invest that are unreliable, warns the economist Saxo Bank. In France if you invest via a bank on the CAC 40, in case of bankruptcy, you can be compensated up to 100,000 euros. If your Bitcoin platform goes bankrupt you will never be reimbursed. ”

HAVE A VISION ON THE FUTURE

“If today the market is not regulated, it could well be in the years to come, says Christopher Dembik. The Banque de France is working on it now, but it will not be in place for a year or two. More than investing in Bitcoin, I would recommend putting money into startups working on the blockchain, the technology used by virtual currency.