There has been a huge interest in investing in the crypto marketplace. And the interest lies in cryptocurrencies such as:

  • Bitcoin
  • Bitcoin Cash
  • Bitcoin Gold
  • Ethereum
  • Ethereum Classic
  • Litecoin
  • Ripple
  • Dash
  • Iota
  • Monero
  • Neo, etc. 

Their high volatility attempts at regulation. Also, generate great doubts about the future of these instruments. But what is certain is that they also represent an opportunity to make profits. That’s to say, that makes the crypto marketplace is nowadays on everyone’s lips.

In this article, we will analyze in-depth how this crypto marketplace works. Besides, what are the main risks of investing in cryptocurrencies? And other questions like:

  • How we can keep them under control?
  • What are the best options we have at our disposal to invest in these instruments? 
  • And the advantages and disadvantages of each of these options.

Many people’s initial idea about crypto was that this type of asset was going to be an alternative. That’s to say, means of payment to the traditional one. The benefits of digital currencies were that they would not depend on any government. Neither central bank nor monetary authority. Investors saw these assets as an alternative to everyday money. Also noteworthy anonymous transactions and outside the regulation of the system. These are the main characteristics of crypto to payment.

Other aspects that make the crypto marketplace attractive

Scarcity is one of the aspects that makes the crypto marketplace more attractive. Without going any further, in the case of Bitcoin, a total of 21 million are into circulation. Once this monetary mass is on the market, it will no longer be possible to create more Bitcoins. So, which would be equal, for example, to having mined all the gold that exists on the planet.

Being a scarce asset, the market gives it value. It’s the same principle that applies to gold and precious metals. Bitcoin has compared to gold for several reasons. Among others we can mention:

  • It’s scarce
  • It’s immune to inflation
  • It acts as a haven asset
  • It’s a store of value (it is a currency, digital but a currency nonetheless).

Do these reasons justify its volatile ups and downs? The truth is that the psychology of investors, acting as a great mass. And speculative positions also have a lot to do with it.

What can we say, financial markets work like this. When a market has attractive characteristics all investors jump in en masse. This has happened with the crypto market. And will happen again in the future with other instruments. But, as a saying in the world of trading and investing goes:

“After a boom, there is a crash and after a crash, there is a boom.”

In short, what goes up must come down and what goes down must go up. Everything is a cycle of ups and downs. Of longs and shorts. Financial markets are almost always driven by expectations rather than facts. Let’s look at the best options in the crypto marketplace.

Attractive crypto marketplace choices you must consider

According to The College Investor, these are the 10 most popular Bitcoin and crypto sites: 

  1. Coinbase. It’s one of the most popular because you can invest in USD. 
  2. Gemini. Allows you to invest in crypto because of its focus on security and transparency.  
  3. BlockFi. It’s an investment platform that allows you to lend and earn interest on your holdings.
  4. Kraken. One of the original crypto trading platforms. And they have a good selection of coins and tokens to trade and invest in. 
  5. Robinhood. Offers free crypto trades on their platform. 
  6. eToro. Offers a huge variety of digital assets to buy and sell on their platform. They have a practice trading account, so you can give it a try before you use real reserves. 
  7. Bitcoin IRA. Unlike most exchanges and wallets, you’re exchanging currency. And are subject to paying taxes on your profits.
  8. Crypto.com. One of the greatest and fastest-growing crypto exchanges. Although it’s based in Hong Kong but offers a lot of support for US-based customers. 
  9. Binance. An excellent platform for getting into some currencies like Cardano or Neo. 
  10. Coinmama. Differentiates itself by letting you buy crypto with a credit card or debit card. Also with Apple Pay or bank transfer. It supports most of the popular tokens.

To keep in mind the best options of the crypto marketplace

When you are going to invest in the best options in the crypto marketplace pay attention to:

Spot buy

The most used system to buy virtual currencies is to go to the spot market. This is possible by a cryptocurrency exchange platform. So, it turns serves as a digital purse (wallet).

Cryptocurrency mining

Not only can get these assets by buying them on the market. Their primary acquisition method is a process of solving mathematical algorithms. So, that maintains the network that serves as a backbone for these transactions. The process it’s putting equipment in the network to verify legal transactions.

Mutual funds

An investment fund is the total capital of many savers. A professional manager takes charge of this capital. Then, under a defined investment policy, manages it to get a return.

Financial derivatives

If we dive into the world of derivatives we are entering another dimension. That’s to say, the possibility of trading. Also, of taking advantage of the high volatility of cryptocurrencies and market reactions. No other instrument allows such an operation. And with the necessary agility than financial derivatives.

In conclusion, you should always know well the risks of any instrument in which you are going to invest. And what are the different options of the crypto marketplace? So, choosing the best one for you and your profile as an investor.