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Nowadays are crypto currencies has already become a central component when it comes to investing profitably. Of course, it must be noted that the crypto market is extremely volatile and therefore brings with it a correspondingly high number of risks. Anyone who deals with the Bitcoin cryptocurrency who will know that things can always go up and down steeply.
But even if you could think that there is only that on the crypto market Bitcoin, there are many other crypto currencies that certainly have the potential to turn the capital invested into an attractive asset. Above all, there are also new cryptocurrencies that are quite promising.
In the end, the question to be answered is which one crypto currencies are promising and can prices skyrocket in the foreseeable future?
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Is it advisable to invest in cryptocurrencies?
Cryptocurrencies are nothing more than virtual money. This means that there are no tangible coins or bills, only the indication of digital storage. The generation of virtual money takes place in a code chain known as a blockchain. A chain that is always in progress. Because changes, transfers and encryptions follow in safe conditions.
However, cryptocurrencies can not only be used in the online shop, provided that the operator of the company accepts digital money. One can also Buy coins, in Keeping a wallet is the digital wallet, and then wait for a price increase. Because cryptocurrencies are not only to be used as a means of payment, but are also perceived as a very promising object of speculation. Of course there is a risk if you do invested in Bitcoin and Co. or speculating with the price should never be underestimated. Because the market is volatile, so that strong price movements are not uncommon. It is therefore important to only invest money that is freely available and - in the worst case - may become less.
Does it just depend on the strategy?
You cannot predict the price of cryptocurrencies, but you can assume that the crypto market will gain strength over time. So it is not uninteresting to invest money.
In addition to the question of which cryptocurrencies will experience real price explosions in the foreseeable future, it is also a question of which strategy is being pursued. If you only want to speculate with the price, you need a different strategy than an investor who Buys coins and kept for a longer period of time.
When it comes to speculating on price, then this is a service from an online broker to claim something. If, on the other hand, you want to invest directly in crypto money, you have to do it via a cryptocurrency exchange. If you are still unsure, you can contact the service of eToro deal: Online broker who provides the services of a cryptocurrency exchange.
The big advantage? eToro is a social trading broker. That means you can copy decisions like strategies of other traders. It should be noted here that even the experienced trader can be wrong at times, so that one should not think that there are always guaranteed profits here. That's not the case.
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Which cryptocurrencies could cause a sensation in 2021?
2020 was definitely a challenging year - on the one hand for the traditional financial system, on the other hand for the entire global economy. So in the end it was not a big surprise that institutional investors also grappled with the world of cryptocurrencies. Because suddenly one was of the opinion Bitcoin and Co. could well be the protection if classic financial investments, caused by the COVID-19 pandemic, no longer lead to success or lead to total loss.
IOTA
The specialty of IOTA? The so-called blockchain technology is not behind the cryptocurrency, but Tangle - this is the blockchain alternative. In addition, IOTA is not necessarily about the consumer, but about the devices - because IOTA wants to become the currency of the "Internet of Things".
Ripple
The Ripple it is an alternative financial payment system. With Ripple, cross-border payments should be possible without any problems - they should also be 100 percent secure, the money should be available immediately and the transaction costs should be as low as possible.
However, it should be noted that Ripple has been struggling with the SEC, the US regulatory authority, for some time. This is sometimes the reason why the real price explosion has not yet occurred. However, if Ripple wins against the SEC, a bull run is as good as inevitable.
Litecoin
Litecoin is an altcoinwhich is often referred to as the silver of digital currencies. Litecoin can already look forward to a large fan base and experienced a tremendous increase in the first few months of 2021. Due to the fact that Litecoin works with significantly higher block rewards than the competition, Litecoin may also be of interest to miners.
Cardano
This is an open source cryptocurrency network and project that is concerned with running a platform based on the open source blockchain that primarily deals with intelligent contracts - smart contracts. The internal The cryptocurrency is called ADA; The monitoring and development of the project is checked by the Cardano Foundation, a company based in Switzerland.
Monero
A private, secure and untraceable cryptocurrency. This open source cryptocurrency should definitely be dealt with if you plan to invest in the long term. Monero, founded in 2014, has the potential because not only was there a strong focus on decentralization, but scalability also played a major role.
Ether
Ether, the cryptocurrency of the Ethereum platform, number 2 in the ranking of cryptocurrencies according to market capitalization, has already set several records in 2021. Therefore, ether may also be mentioned when looking for a cryptocurrency that has the potential to post high price increases in 2021.
Bitcoin
In the end, of course, you shouldn't forget the "mother of all cryptocurrencies". Ultimately, he could too Bitcoin caused a sensation when it went from around 10.000 US dollars to 64.000 US dollars within a few months.
How do you invest in digital money?
As mentioned earlier, there are several ways in which you can work with cryptocurrencies. So you can Buy and sell coins, after the desired price level has been achieved, but can also speculate directly with the price. The advantage of choosing to speculate on the price of the cryptocurrency? With a "short" position, you can bet that the price will go down.
It is important, however, that one always works with risk-reducing instruments. For example with Take Profit or Stop Loss. Above all, stop loss is recommended, as the maximum loss is set here in advance. Because if the price moves in the unfortunate direction for the trader, then the position will be closed after the maximum loss has been reached. Take Profit is about profit: If you achieve the profit defined in advance, the position is also closed - the opposite, so to speak, occurs here.
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The forecasts
The prognosis should always be enjoyed with great caution. Especially when it comes to cryptocurrencies that are still quite unknown and have just been on the market for a short time. It is important that you always deal with the different technologies and also take a look at the goal of the platform. Because behind every cryptocurrency there is an intention - this can be found in the so-called white paper.
If one realizes that the pursued goal may be realistic and feasible, this sometimes speaks for itself an investment in the cryptocurrency. If you notice that the goal sometimes cannot be achieved or if you assume that this will appear impossible in the next few years and decades, it will be advisable to decide against the crypto currency.
Forecasts are not to be understood as a guarantee, but only an up-to-date calculation based on the current situation. It is therefore important to only invest money that is freely available.
Every correction is followed by a flight of highs
It can go down again and again and become turbulent. It is important, especially when investing long-term, never to lose sight of the end goal. In other words, you shouldn't let yourself be disturbed if the markets are more turbulent than usual.
The past has shown several times that every correction is followed by a flight of highs. We at Bitcoin News.one believe that with this attitude it may also be easier to invest in cryptocurrencies.