Expert advice to invest in cryptocurrencies

The success of crypto-coins is at the rendezvous and even arouses the craze of neophytes. However, investing in these virtual currencies remains risky and it is better to learn before launching. If you want to buy Bitcoin or Ethers, here are some useful tips regal assets reviews.

In recent months, the price of cryto-currencies like Bitcoinis flying. Exceeding the price of an ounce of gold at the beginning of 2017, at1130 euros, the price of Bitcoin fluctuates for example today above 3000 euros.What interest always more investors who, often misinformed, can forget that theprice of these currencies remains very fluctuating and it is possible to losebig. To get started in the Cryptocurrency adventure by limiting the risks, hereare some expert tips that could prove very useful.

UNDERSTAND THIS CURRENCY LIKE NO OTHER

Just because crypto-currencies are virtual does not meanthat their quantity is unlimited. In particular, to avoid reproducing thesubprime crisis, "a limit of 21 million bitcoins was set at itscreation" which gives the currency, "the same peculiarity as preciousmetals" as explains Manuel Valente, director of La House of Bitcoin."Nobody can handle this amount; it makes it a rare and stableproduct." So far, 16.2 million Bitcoins have been created.

ANALYZE ITS UNSTABLE COURSE

"Virtual currencies are highly speculativeproducts," says Christopher Dembik, head of macroeconomic research at SaxoBank. When investing in the CAC 40, we know that the price drops or increasesaccording to the evolution of the company. These digital currencies, on theother hand, are not backed by fundamentals or an economic reality ". Forthe specialist, investing today on it, is tantamount to a gamble.

He recognizes, however, that forecasts of their prices arepossible. These are closely related to financial and geopolitical events."When there is instability related to elections or economic measures of acountry for example, the prices of cryptocurrencies skyrocket," saysManuel Valente.

It is therefore important to stay abreast of current eventsthat may affect their course, but also to study the past of these often veryrecent currencies.

NEOPHYTES, DO NOT START ALONE

"For those who know nothing about the stock market,its better to start with classics and stable products without much risk,"advises Christopher Dembik. This helps to understand the mechanisms."There are also sites and blogs where people offer their analysis on theevolution of the prices of the crytomonnaies complete the director of the Houseof Bitcoin.

"To buy or sell virtual currency, you can go through anonline platform that works exactly like a currency trading platform,"continues the director. The problem is that the interfaces are often complexwith graphics and a lot of buttons. For those who do not know anything, it is bestto go to a specialized physical currency exchange office. Even though thecommission will be higher than on an online platform, office agents will beable to give you advice. "

PAY ATTENTION TO SCAMS

And yes, who says internet says hacker, scam the end of theworld and hacking. "There are thousands of crypto-currencies currently incirculation. Some are very well built and have a future like Ethereun orLitecoin. Others are scams. Very well done sites are trying with veryattractive messages to get them to buy, but behind there is nothing? In generalwe must be wary of platforms that promise you huge profits with zero risk,"warns Manuel Valente.

It is also important to know that there is no guarantee thatthe transaction platforms will display the right values. Remember to take atour on different of them to compare rates.

BE AWARE OF THE RISK

"The Bitcoin is not regulated, so you can fall onplatforms that allow you to invest that are unreliable, warns the economistSaxo Bank. In France if you invest via a bank on the CAC 40, in case ofbankruptcy, you can be compensated up to 100,000 euros. If your Bitcoinplatform goes bankrupt you will never be reimbursed. "

HAVE A VISION ON THE FUTURE"Iftoday the market is not regulated, it could well be in the years to come, saysChristopher Dembik. The Banque de France is working on it now, but it will notbe in place for a year or two. More than investing in Bitcoin, I wouldrecommend putting money into start-ups working on the blockchain, thetechnology used by virtual currency.