A few years ago, we could count on our fingers who believed and invested in bitcoin. For most investors, the cryptomarket was something nebulous, a kind of speculative bubble. Although, the cryptocurrency thesis is getting stronger and stronger.
It’s not by chance that bitcoin has increased in value +420% in 2020, considered the most profitable investment of the year, and in April of that year the currency reached its historic maximum: it was worth it $63,000 (which represents + 450,000% since the creation of the currency in 2011).
Although ups and downs are part of the daily life of this market, which is volatile, investing in bitcoin and other cryptos has never been as talked about as it is today. The investment is gaining more and more prestige and has been gaining the attention of institutional investors – as happened with Tesla and Paypal.
Today, we can say that cryptoactives are here to stay, and whoever is exposed to them has a real chance of profiting big. To give you an idea, who invested in bitcoin (BTC) in March of last year, when the world stock exchanges and crypto market crashed on account of Covid-19, bitcoin investors saw their portfolio appreciate more than 1,000%. Meanwhile, altcoins, which are the alternative currencies to bitcoin, appreciated even more. This is the case of the ethereum, which in the same period rose more than 2,000%.
But beware: before investing in virtual currencies, it is important to study the market.
7 points for not going through trouble when investing in Bitcoin and other cryptos
To trade in this market, the first thing to do is choose a reliable platform to buy and sell virtual currencies, which in this segment, is also called exchange.
You need to assess some basic issues like rates, liquidity and safety not to fall in holes – because yes, unfortunately they exist.
And, well, if you’re here, I imagine your wish is to make money, not lose, right? So, be careful when choosing your broker. To find the best exchange to invest in crypto, stay tuned at the following points:
- Check if the company really exists
First of all, always ensure that the cryptocurrency exchange you are looking for exists and that it’s not a scam.
For this, some practices are worth checking the veracity of the company:
- Check the company’s website for data such as CNPJ, address or corporate structure;
- Search Google for this information and for quotes in press stories;
- Check the company’s performance and grade on Reclame Aqui;
- Search LinkedIn for the names of creators and directors, assessing whether they have a relevant professional background.
After checking the credibility of the company, note the next topics:
- Run away from false promises of income
Among the precautions we must take when choosing an exchange, it is important to analyze whether it offers a promise of income or not.
As this is a variable income market, as the name implies, your portfolio can appreciate or depreciate. Therefore, it is not possible to guarantee any kind of profit. So, steer clear of platforms that promise yields or talk about guaranteed returns.
- See if you have liquidity
It is valid that you rate the trading volume at the brokerage. The higher this number, the greater the liquidity – an indication that many users are using the platform to buy and sell digital currencies.
And why is it so important to assess this?
For example, in the traditional Brazilian market, all brokers are linked to the stock exchange, right? So, if you want to sell an asset, you can find someone from another broker trying to buy that same asset, then you close a deal and generate liquidity, which is concentrated around the stock exchange.
In crypto, it’s different: each company works like a living organism. So if you trade within the Bitcoin Trade, for example, you are only in contact with people who are inside that platform. And that’s why it’s so important to watch the trading volume of the exchange you’re investing in.
- Check platform security
It is essential that the chosen crypto broker offers safety and protection against hacker attacks and intrusions.
To certify the company’s reputation, you can also check if it has a Money Laundering Prevention and Terrorism Financing Policy.
- Analyze your investor profile
Before buying cryptocurrencies, it is necessary to know your investor profile and your strategy. That is, if you want to make short, medium and long term profits.
For beginners, the ideal is to use an intuitive platform – that accepts purchases made in real and provides security for your transactions, such as Ripio.
However, if you intend to do daily trades, you need to further research items such as: the quantity, price and rate of bitcoin and altcoin traded on the platform.
- Attention to deposits and fees
The first step is to pay attention to the forms of deposit with the broker. For example, the BitcoinTrade and the Ripio, accept PIX and other forms of transfer.
Check fees for purchases, sales and withdrawals made on exchanges.
- Find out about transaction deadlines
Finally, I recommend that you pay attention to the deadlines for deposits and withdrawals in reais. Will it take two days? Two hours? Is it instant? These little things can make a difference when you need them.
Compare deadlines and evaluate which one is more interesting depending on your profile and strategy of investor.
Want suggestions for cryptocurrency platforms?
If you’ve made it this far, I believe you are more than prepared to assess which cryptocurrency platform is right for you. There are several options on the market, including:
- THE Bitcoin Trade, if you want to do day trade or several short term operations;
- Or else the Ripio, if you want to make a few moves and are adept at buy and hold.
Ripio: ideal for buy and hold investor
This cryptocurrency platform is a leading company of the Argentine market. It has been on the market for 7 years and more than 1 million users have already chosen it. Considered one of the most innovative companies of 2020 by the World Economic Forum, today it also operates in Brazil, Mexico, Uruguay and Spain.
Your main product is yours cryptoactive portfolio, which allows the user to buy, sell, store and send bitcoin and other cryptocurrencies (click here to find out). The main ones traded on the platform are: bitcoin (BTC), etherum (ETH), litecoin (LTC), so (SO), USD coin (USDC), small love potion (SLP), Axie Infinity (AXS), Uniswap (UNI) and ChainLink (Link)..
The Ripio account is free and there are no monthly fees or custody fees. There is currently a mega exchange promotion in place that is not charging fees for transactions to buy and sell digital currencies. The minimum to invest is R$10.
Some points that make the platform attractive:
- It’s intuitive and easy to use;
- Security is guaranteed, it has two-factor authentication (2FA);
- The trading volume on the platform is $1 million per month, ensuring liquidity;
Below is an invitation to visit the platform:
MEET RIPIO: LEADING COMPANY IN LATIN AMERICA, IDEAL FOR THOSE WHO WISH TO BUY BITCOIN OTHER CRYPTO CURRENCIES WITH A LONG TERM
BitcoinTrade: ideal for day trade and swing trade investor
Also one of the pioneering companies in Latin America, the BitcoinTrade is a Brazilian exchange founded in 2017. The platform has more than 500 thousand registered customers and more than R$3.9 billion traded. It is also worth highlighting its grade in Reclame Aqui: 8.3 (a great reputation).
As it is a complete platform, used by many traders, the BitcoinTrade It has high liquidity, that is, a high volume of trades, and withdrawals are released in record time. On their website, you can see exactly how many transactions were made in 24 hours (click here to check). Among the currencies traded are bitcoin, ethereum (ETH), litecoin (LTC), bitcoin cash (BCH), EOS (EOS) and (SO).
GET TO KNOW BITCOINTRADE: AGILE AND SAFE CRYPTOCURRENCY EXCHANGE, IDEAL FOR THOSE WHO WISH TO CARRY OUT MANY SHORT AND MEDIUM-TERM OPERATIONS
I hope this article has helped you find the right platform for you. And remember: when in doubt, compare!