If you are considering investing in a usual cryptocurrency (like Bitcoin or Ethereum), here are some key tips:
1. Bitcoin #BTC☀ (BTC): The Digital Store of Value
• Reasons to invest:
Bitcoin is the first cryptocurrency and is considered "digital gold". Its supply is limited to 21 million, giving it deflationary characteristics. It is ideal for those looking for a long-term store of value.
• Consider this:
• High short-term volatility.
• It is more influenced by market sentiment and macroeconomic events, such as interest rates or government regulation.
• Recommended strategy:
Periodic buying (DCA: Dollar-Cost Averaging), buying small amounts regularly to mitigate volatility.
2. Ethereum (ETH): The Infrastructure of Decentralized Finance
• Reasons to invest:
Ethereum is more than a cryptocurrency; it is a platform that enables smart contracts and decentralized applications (dApps). It underpins most DeFi, NFT projects, and more.
• Consider this:
• Ethereum has direct competition (like Solana, Cardano, or Avalanche).
• Transaction fees can be high during congestion, although the transition to Ethereum 2.0 has improved scalability.
• Recommended strategy:
If you believe in the growth of decentralized applications, ETH is a solid long-term bet.
General tips for traditional cryptocurrencies
1. Diversify your portfolio:
Do not put everything into a single cryptocurrency; consider a mix between BTC, ETH, and others with solid fundamentals.
2. Research before investing:
Make sure to understand the purpose of the project, the team behind it, and the market they serve.
3. Store your assets securely:
Use cold wallets (hardware wallets) like Ledger or Trezor to avoid security risks.
4. Define your investment goals:
Are you looking for short-term gains or long-term value? This will affect your entry and exit strategy.
5. Monitor the market cautiously: