Valuation Increases Search for Bitcoin; Learn How to Invest in Cryptocurrencies

Earlier this month, Bitcoin, the world’s best-known cryptocurrency, appreciated 21.4%. The surge after a long “winter” period also leveraged the price of altcoins, alternative currencies to Bitcoin, which achieved gains of up to 181%. Internet searches for the term “bitcoin” and the number of people who show interest in knowing how to invest in cryptocurrencies have also increased.

The good news for investors who have become interested in knowing how to invest in cryptocurrencies is that other virtual currencies have appreciated more than Bitcoin in 2019. On the XDEX platform, an exchange invested by XP, while the famous encrypted currency reached a gain of 40%, Litecoin (LTC) appreciated 181%, followed by Bitcoin Cash (BCH) with 96% and Dash (DASH) with 69%.

The numbers show that there are other options for Bitcoin on the market. All of them have a common feature, which makes the investment accessible: they can be bought in fractions, since they are divisible up to the 8th decimal place, that is, with only $ 0.01, it is possible to buy a fraction of Bitcoin or another cryptocurrency. That is why it is necessary to know the asset and analyze its variation to identify which is more worthwhile.

How to invest in cryptocurrencies?

Understanding how the cryptocurrency market works and its high volatility is very important. The spikes in virtual currency appreciation may be large, but there is also a lot of devaluation – and that can happen in just one day. For this reason, experts advise not to invest more than you are willing to lose.

But volatility should not be a reason for not investing in that market. While banks are bureaucratic and charge high fees, dealing with exchanges is easy and cheap. In this case, the key point is to opt for a reliable exchange with a good proposal. The  XDEX is invested by the renowned XP Control Participações and General Atlantic (American manager that invests in private equity firms), and has the lowest rates – for negotiating the Bitcoin rate is zero.

The decision for cryptocurrency

With the chosen exchange, it’s time to decide which cryptocurrency to invest in. For that, it is necessary to define the investor profile, analyze the market value of virtual currencies and their history of appreciation, and only then choose the most compatible one. The weekly reports and analyzes that are available to XDEX subscribers can help with investment analysis and decision. 

• Bitcoin (BTC):

  it was the first cryptocurrency created, it is also the best known and has the highest purchase value. It became famous for its great appreciation peaks. This year, up to the second week of April, it increased by 40%.

• Ethereum (ETH):

  the purchase price is just behind Bitcoin and Bitcoin Cash. ETH works within the blockchain platform Ethereum that allows the programming of smart contracts, being able to create all the existing functionalities in a decentralized way, which, probably, will increase its price more and more in the future. The currency appreciated 24% in 2019. 

• Ripple (XRP):

  It is a distributed payment system that allows transfers in a safe and instant way, regardless of its size. The asset gained great prominence in the market by announcing partnerships with major international banks. In 2019, until the second week of April, there was no appreciation.

• Bitcoin Cash (BCH):

  emerged to replace Bitcoin, offering faster transactions. As there was no consensus on the substitution, BCH started to be considered a new cryptocurrency. Currently, its purchase price is the second most expensive on the market. It increased by 96% in 2019.  

• Litecoin (LTC):

  has a fast transfer and is well traded in the market. Like Bitcoin, the currency is technically similar to, LTC suffers from ups and downs. It appreciated 181% in the accumulated of 2019.

• Dash (DASH):

  the result of a bifurcation of the Bitcoin software, it has very fast, almost instantaneous transactions, where the user can choose whether it will be anonymously or not. 2019 accumulated appreciation was 69%.

• Zcash (ZEC):

  it was created to guarantee privacy and anonymity that other cryptocurrencies could not guarantee and that was why it was quickly known. Accumulated in 2019, it appreciated 28%.       

* The variation values ​​occurred within the XDEX platform and refer to the 9th of April this year. 

Is this a good time to invest in cryptocurrencies?

The current scenario is marked by the instability of the stock exchange, uncertainties in the approval of the pension reform, and controversies related to the government. This favors the cryptocurrency market, which, unlike other investments, has its price variation little correlated with these assets.

In addition, experts have spoken positively about the future of cryptocurrencies. Ryan Selkis, the co-founder of Messari, said that in the next 20 years millennials will invest 300 billion dollars in the cryptocurrency market and the price of bitcoin will rise to 50 thousand dollars.

Are you interested in the cryptocurrency and want to follow it closely to be sure how to invest in cryptocurrencies? Search for weekly reports, analysis of the fragility level of each encrypted currency, and understand their projection. Some courses available on the internet can help in this understanding.