How to invest in cryptocurrencies?

Many people are tempted to invest in cryptocurrencies, but they think the process is boring. However, it is now very easy to invest in these virtual currencies. Some are experiencing very high growth rates. Explanations.

Bitcoin, a safe haven

In this period marked by an international crisis with the conflict between Ukraine and Russia, making safe investments is one of the major concerns of individuals and institutional actors. Therefore, Bitcoin appears to be a safe haven in many ways.

Bitcoin is a rare virtual currency because its quantity is limited. There are 21 million Bitcoins in circulation. In an inflationary environment, Bitcoin seduces investors. Therefore, Bitcoin is one of the most popular cryptocurrencies in 2022. This virtual currency accounts for over 50% of the remaining market. Therefore, buying cryptocurrencies with Coinhouse is a great option. Bitcoin remains a safe bet for a first investment in the world of cryptocurrencies.

Choose the right platform to invest

It is important to master some basics and in particular the vocabulary of this universe. You can easily find cryptocurrency training online. This way you will learn what blockchain or mining is. To get to know this universe, it is essential to train. On the net, many Youtubers make very educational videos to enlighten you on the basics of cryptocurrencies.

There are numerous operators in this very competitive market. It is therefore necessary to methodically choose a reliable cryptocurrency exchange platform. A framework has been put in place that regulates the platforms that sell cryptocurrencies.

The Autorité des Marchés Financiers (AMF), the supervisory body of the sector, monitors the activity of Digital Service Providers: that is, intermediaries that offer services relating to cryptocurrencies. Among serious platforms, Coinhouse ranks first. It is important to go through a French platform when carrying out a trade.

In fact, if the account you use to acquire cryptocurrencies is located outside of France, taxpayers are required to fill out Form 3916 with each tax return. An omission can result in a fine of over € 1,000 per undeclared account.

Protect your cryptocurrencies

Protecting your digital currencies is an essential element when you start investing in cryptocurrencies. Therefore, it is essential to activate double authentication on the platforms you use to sell or buy cryptocurrencies. Furthermore, it is best to transact with perfectly secure internet connections and avoid doing so in public places.

You will also need to familiarize yourself with your virtual wallet called a wallet. There are several types. A hot wallet is a virtual wallet that stores cryptocurrencies on a tablet, computer or smartphone. Its advantage is its practicality. Second option, the cold wallet is an external storage mode that is not connected to the internet. A safer method that protects against the risk of hacking, which is a threat to be taken seriously.

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