The events of 2020 once again proved to us that nothing is permanent in the world. This thesis has also touched financial markets. Just a year ago, investors were clutching their heads – there was practically no asset in which they could safely invest their money. Even gold, which seemed to have always been seen by investors as something constant and unchangeable, has plummeted in price. In March 2020, an ounce of gold was worth less than $1,500, and the customary price of $2,000 remained out of reach until August.
The situation in the markets and industry necessitated quantitative easing and the issuance of so-called helicopter money, which literally took the falling stock market under its arms and put it on crutches. Shares of some companies rose unnecessarily and turned into bubbles. At this point, investors, including institutional investors, turned their attention to cryptocurrency as an asset class that has little correlation with other assets.
What are the risks and opportunities associated with investing in cryptocurrencies
While some countries recognize cryptocurrencies as a means of payment, others are developing laws to regulate the fast-growing crypto business. The cryptocurrency market is growing and developing rapidly every year, despite all sorts of criticism and skepticism. Of course, after seeing such growth and development of the cryptocurrency market, people who were initially critical began to show interest and invest in cryptocurrencies.
If you have decided to invest in cryptocurrency, you should first of all familiarize yourself in detail with all the nuances and understand how it all works. To simplify the task, we recommend wellcrypto, here you will always find the most up-to-date information about cryptocurrency exchanges and the best sites for trading.
How to choose the right cryptocurrency exchange?
In order to choose the most suitable option, it is recommended to start a thorough check.
The first step is the study of reviews. These are special articles written by experts, people themselves register on the sites to evaluate the working conditions. Then they write a detailed opinion, operating with facts and diluting the text with their own evaluative thoughts and advice.
The second step in the search is to study the information on the official website. Even unregistered users have access to basic data and can assess the conditions in sufficient detail. Site administrators also recommend carefully reading the user agreement and the “Questions and Answers” section.
The third step is to check the reviews. This is the most important moment. After all, in reviews, traders who are already working with the platform, tell us about the real conditions. They describe the quality of service, the price of transactions, the correspondence of all the declared indicators to the real ones. It’s easy enough to do, for example, by typing in «bitfinex review» in a search engine or by going to thematic forums. Be careful, because reviews can turn out to be fake.
Which cryptocurrency exchange is safer?
Many investors and traders are interested in the volatility of cryptocurrencies because it can turn into a rapid rise in their value. Of course, a return on investment cannot be guaranteed.
This same volatility makes cryptocurrency a much riskier investment than stocks, but because of this, you can make good profits on bitcoin P2P exchanges. Therefore, if you have free funds in your portfolio, it may be worth allocating some of them to invest in cryptocurrencies, but first the most important thing is to choose the best cryptocurrency P2P exchange for the private investor.
When choosing a cryptocurrency exchange, the main criterion we should be guided by is always security issues. Low commissions and promotions will not matter if you lose all your funds due to hacking or phishing attack. For example gate io reviews clearly show us that the exchange has taken security issues very seriously from the beginning. It has implemented two-factor authentication via Google Authenticator and SMS authentication, known from traditional banking transactions. Every login has to be further verified, so you don’t have to fear an unauthorized person getting into your account. Withdrawals require an additional password. To further enhance investor security, the platform uses anti-phishing codes and blind login by IP address.