cryptocurrencies in 2024
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Will it be profitable to invest in cryptocurrencies in 2024?

-Investment scams: stay away from supposed opportunities if you detect any of these signs


cryptocurrencies in 2024 | Everything You Need to Know

Conceived as virtual currencies that aim to be assimilated into a normal currency, cryptocurrencies were born in October 2008 with the launch of the first digital currency, Bitcoin.

Completely Digital Origin

Cryptocurrencies have a completely digital origin, based on blockchain technology which allows them to operate in a more secure way than the vast majority of existing transactions.

Soaring Inflation and Geopolitical Conflicts

In a context like the current one, with skyrocketing inflation and very complex geopolitical conflicts, it is completely understandable that an asset as incipient and volatile as cryptocurrencies is going through a bad streak, or in crypto jargon, a ‘crypto winter’: long periods of losses with little expectation of recovery in the short term.

Looking ahead to 2023 and presumably 2024, we will continue to be cold in the crypto world, but like in the rest of the markets. Soon, the loopholes around the MiCa regulation in the European Union will be closed, and all companies and currencies created so far will have to adapt to the new law to be able to continue developing. This is something positive; it will serve to maintain a much more serious, safe, and consolidated market within the world of investments.

It is very likely that the value of cryptocurrencies will continue to experience declines this year and will rise again in the medium-long term, although presumably not as sharply as in 2021 and showing less volatility than until now.

Tips for investing in cryptocurrencies in 2024

1. Train yourself. Don’t trust your savings to your brother-in-law’s recommendations or a YouTube tutorial. There are hundreds of courses on investing and financial management that will help you acquire the basic knowledge to start investing safely.

2. You don’t want to run. Just as you can spend months looking for a house to buy, don’t jump into investing without having dedicated long hours to inform yourself and learn about investments. It is a complex world, and you must have all the necessary tools and knowledge before entering it.

3. Analyze your risk capacity. Be very clear about how much of your money you can invest and, above all, how much you can afford to lose.

4. Set goals. Ask yourself why you want to invest. To buy you a car; a house; for retirement… depending on your objective, you should choose one strategy or another.

5. Diversify. The portfolios with the least risk are those that are not reduced to a couple of stocks in which you have put all your money. Because you could lose everything at once. Distributing these shares into medium-low risk securities and a couple of certain risk assets is one of the strategies most followed by expert investors.

As for good options to start with, one of them is undoubtedly ETFs or exchange-traded funds. This type of product is an investment fund whose main characteristic is that it is traded in secondary securities markets. It is a product that is characterized mainly by its diversification since it does not correspond to a specific company but to those that move on a specific stock exchange.

This type of fund carries less risk than other types of assets, such as cryptocurrencies, precisely because of the diversification we talked about before. Furthermore, the offer of ETFs is increasing, and we can find very interesting options, such as some specialized in sustainability, population growth, or water in areas that will undoubtedly continue to grow in value in the coming years.

Once you gain experience, it is advisable to have a diversified portfolio of securities, with greater weight in more conservative funds such as ETFs and a small proportion of our money in riskier assets such as cryptocurrencies.

Last but not least, it is essential that you choose a good investment platform. In recent years, countless investment platforms have emerged, and which one you choose will undoubtedly make a difference.

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