Cryptocurrency as an investment in the future

 Investments in futures markets are extremely interesting because they offer both high chances of lucrativeness, but also risks. This is what you should know about cryptocurrencies.

For many people, cryptocurrencies are still a hype that will surely go away. However, anyone who reads the subject quickly realizes that cryptocurrencies and, above all, the associated blockchains have great potential to change the world in the long term - be it in terms of payment transactions, database solutions, or other decentralized approaches. Anyone who invests in digital currencies is also investing in the future. And if there's one thing said about investments in innovative things, it's that they can be very lucrative.

Which cryptocurrencies to invest in?

A few years ago it would have been clear which cryptocurrencies to choose: Bitcoin and Ethereum were the usual suspects, the rest of the selection was still limited. Today, however, there are more than twelve thousand cryptocurrencies worldwide. Although not all are traded with every online broker, the choice is still difficult. The high volatility of most cryptocurrencies is an additional barrier for many investors.

More and more investors, therefore, want to buy (USDT) Tether: This is a so-called stablecoin – i.e. a very stable cryptocurrency. Tether is therefore very well suited as a store of value, but also for decentralized money transactions - because it is linked to the US dollar, fast transactions are always possible at low costs

How to invest in cryptocurrencies?

If you want to benefit from the crypto boom, you don't necessarily have to buy coins. Investors now have a wide range of possible investment types at their disposal. We have summarized the most common of these for our readers below.

Crypto exchange

Experienced investors usually prefer direct investment on the stock exchange. Cryptocurrencies are traded in pairs there. This means that the purchase price is rather an exchange value that is presented as a base currency. US dollars or euros are exchanged for Bitcoin (BTC), Litecoin (LTC), or Ether (ETH) particularly frequently in this way.

Although trading on a crypto exchange is relatively complex, it usually impresses with a very large selection of blockchain projects and thus also cryptocurrencies. Again and again, it happens that investors sell a cryptocurrency and do not want to invest directly in another. The stablecoin Tether is then often chosen as a transitional coin due to its stability.

crypto broker

Anyone who is a beginner and does not yet have much experience with crypto trading usually chooses a crypto broker first. The online brokers for cryptocurrencies impress with their intuitive usability and maximum user-friendliness.

For experienced traders, however, the selection of different cryptocurrencies at exchange offices is usually a bit too small. The costs and fees are usually a bit higher than would be the case directly on the stock exchange.

Crypto Stocks and ETFs

It is worth knowing that a crypto investment does not necessarily have to be based on buying coins. Investors also have the option of indirectly benefiting from the boom in digital

currencies.

Those who are well versed in stock trading can invest in crypto securities, for example. Meanwhile, investors who are convinced of the potential of cryptocurrencies but are afraid of their high volatility prefer to rely on ETFs. Because ETFs represent a cross-section of the crypto market, investors should expect less risk. Anyone who chooses a crypto ETF savings plan can simultaneously benefit from the cost average effect and increase their capital over the long term.

What are the dangers of a crypto investment?

If you want to invest your money in cryptocurrencies, you are investing in a future market. This can either continue to flourish or be replaced by other technologies before it is in full bloom.

Investors who have thin nerves are also not well advised to invest in cryptocurrencies: It happens again and again that prices fall spontaneously - depending on how much you have invested, this can mean high losses. In such a case, one should keep in mind that only a sold losing position becomes a realized loss. So panic selling takes revenge.

Blockchain, crypto exchanges, brokers, and wallets are popular targets for cybercriminals. The risk of losing money through a hacking attack is small, but not entirely unthinkable.

Because cryptocurrencies are not considered a state-approved means of payment, regulation is in bad shape. However, regulated markets are considered to be far safer.