Investing in digital currencies.. risks and benefits
Digital currencies or cryptocurrencies, is an exciting and attractive market for investors from all over the world, because working in it makes you make a fortune in a very short time, but this business is full of risks and volatility.
The investment experts stated that this work, anyone who turns to it and has love and enthusiasm in making money from investing in cryptocurrencies, should know that there are rules that he must respect, because if he does not respect these rules, he will lose money and be shocked and will not achieve these dreams.
For anyone who is excited to get started on their cryptocurrency journey, I am going to share with you some simple rules to follow to ensure that your investment is safe, productive and smart, including following some guidelines in order to keep your crypto investments safe and increase your potential profits.
Tip: Learn how to create great investment strategies, how to reduce risks, it is even worth taking coding courses and you can do it as long as you have a desire to learn.
The important thing is also the ruling on dealing with digital currencies, whether it is legally permissible or not.
What are digital currencies
We'll define "digital currency" before we start investing. Digital currency, which is a sum of money or electronic currency, and this currency you can own in the virtual world and you can buy anything with it on the Internet, it is not a real, tangible currency that can be held and touched, but this currency is a digital property that is saved as data using encryption techniques High security can not be hacked, and this money you can buy from sites that sell digital currency, you can sell it, you can trade it for profit from the Internet.
We all know that the digital currency Bitcoin is the most widely traded currency in the virtual world, which has become called by investors as “digital gold.” Of course, the founder of this currency is unknown and uses the pseudonym “Satoshi Nakamoto.” We will notice that the word Shatoshi, which is numbers that are less than 1 Bitcoin like "0.0001 satoshi".
Bitcoin first started as a story of 21 million units of money when it was launched, and the amount of 1309 bitcoin was equal to 1 US dollar, and then it became famous and became a large platform and its price reached 19,700 dollars in 2017, and we do not say that Bitcoin alone was in That time, but here were "Dogecoin", "Ethereum", "Tether", "Litecoin" and others, but the Bitcoin currency is the most popular and popular among investors.
Digital currencies have become very popular among people, both professionals and beginners, and have become the focus of investors attention in many countries, and investing in digital currencies is a quick return, and at the same time an investment tool with quick losses as well. That is why the investor must be very careful while trading, and among the dangerous matters is that there are websites on the Internet that deceive and deceive investors in various ways, and in fact there are a very large number of people who have been defrauded and their passwords have been lost, and this is due Also to YouTubers who take a few dirhams to explain the investment sites and testify to falsehood without examining the reality of the site.
That is why before you start investing in digital currencies, whether it is Bitcoin or others, and before you buy or sell and trade, you must know some things first before embarking on this work.
1 . You should know that this currency fluctuates in the same minute, hour, day, week and month. In 2017, for example, the value of Bitcoin was about 3000 dollars, then the value rose to 11,000 dollars and then 19,700 dollars, in the same year as previously mentioned, then the value decreased later to $7000, and then rose again. It fluctuates significantly over a short period of time.
2 . These currencies are not backed by official government agencies, and the government is not responsible for your loss or fraud.
3 . Some countries penalize anyone who works with these digital currencies.
4 . You should know that counterfeiting and counterfeiting is difficult, as digital currencies depend on blockchain technology in their work, as this decentralized technology in recording and transferring financial transactions is one of the most secure methods of payment and transfer of funds, as the Blockchain network cannot be easily hacked and it is impossible to forge it or falsify it. This makes cryptocurrency a preferred option for many.
5 . There are Muslim scholars who believe that dealing with Bitcoin is forbidden because it does not have a guarantee, and this is like gambling, “Cash must include 3 advantages, the first being a valuation criterion, the second being a storehouse of wealth, and the third being based on a general acceptance of public acquittal. " These three conditions do not exist in digital currencies. God Almighty knows best.
6 . You should know that investing in digital currency can make you rich in a very short time, and at the same time can make you bankrupt in a very short time, as they are currencies whose price is related to the economic and political performance of countries.
How do I invest in digital currencies
Bitcoin appeared in 2009 AD, and it was the first encrypted digital currency, and this currency was only a story of imagination for a large number of people and they did not believe that it would be the cause of the wealth of a large number of investors, while the blockchain technology behind Bitcoin was impressing the technological community However, it did not attract public interest as an investment option. But after more than a decade, a lot of digital currencies entered the crypto market, and Bitcoin appeared as the most expensive electronic currency on the surface of this earth.
What you should know is that those who bought cryptocurrencies invested their money in the year 2017 AD, but now they are making millions of dollars per month, so I will share with you some tips based on my knowledge and knowledge in this field.
1. Start small
We all know that the stock market is different from other markets, in most cases, it does not offer or own goods and merchandise. The goods or commodities that are traded in them are not real assets, but rather are securities or financial assets, and in most cases these goods are stocks and bonds, and as you know that the stock exchange has rules and skills that you must control in order to choose a particular security with complete care on time It is appropriate, because in the case of buying or selling and you did not study the evidence well and did not check the time, you are at risk of losing.
This rule applies to investing in digital currencies, because the cryptocurrency market is very volatile, and this only indicates an unexpected rise and fall, and for this it is prudent and precaution to start with a small amount for at least 3 to 6 months without any debts, when You discover that things are clear to you, start investing in stocks because you know when to start and when to stop and when to buy and when to sell.
2. Select the cryptocurrency
There is no doubt in the year 2022 AD, there are a large number of cryptocurrencies at different prices, so you must think well and constantly research before choosing the right encrypted currency, investigate what is going on in the markets, and then choose the 5 best performing digital currencies and follow their growth constantly, there are a very large number One of the cryptocurrencies, but the one that is currently relied upon more than this amount is Bitcoin, because it is the largest cryptocurrency in the world, and it is also the most reliable next to Ethereum.
3. Choose a suitable platform
platform is the place through which you can buy and sell digital currencies and keep them, and you must choose the appropriate platform carefully and carefully, even if it takes me months to reveal the truth of the platforms is better for me than putting money and being scammed.
As for the mechanism of trading on the different platforms, it is as follows:
- An investor can buy or sell cryptocurrencies through these platforms.
- An investor can transfer his money from paper money to digital.
- ability to convert between different denominations and types of digital currencies.
- platforms for trading operations charge a specific fee for the various transactions that take place through them.
Each platform sets its own exchange rate.
Best Cryptocurrency Trading Platforms
1. NSFX platform
2. Binance platform
3. Kucoin . platform
4. Huobi Global . platform
5. Coinbase platform
6. Kraken . platform
7. Bitfinex platform
4. Choose a suitable wallet
A wallet is a must to store cryptocurrency, but what is a cryptocurrency wallet? And why should we create an account in the wallet for cryptocurrencies?
A wallet is a program that stores your private and public key and adds a link between you and the blockchain where your crypto assets are located. Encryption is called a key. And we all know that without a key, the encryption transaction cannot be completed.
wallet can be used to store, send and receive encrypted currencies and deal with a large number of companies that accept cryptocurrencies.
Do digital currencies threaten the real economy currencies
In fact, in 2022, economists and financial analysts warned of the risks of trading “Bitcoin” on the economic and financial systems, stressing that it is used to finance illegal operations, and terrorist groups may use it in their activities.
They said that Bitcoin has a fixed and unchanging money, which is 21 million units, and one of its most dangerous and frightening problems is that it continues to escalate day after day, also from its problems and risks, which is that you do not know who you are dealing with, not in terms of the buyer and seller, as it finances and covers illegal things. And without controls, and also as it was said that this encrypted currency (may be used to finance terrorist operations and money laundering because it has no legitimate basis.)
There are some experts who believe that this currency is very dangerous for the country economy, even though many countries have allowed it to be traded in banks and stock exchanges, especially America. There are also international companies that advise and motivate customers to buy Bitcoin, but many countries, including the Arab countries and Korea... warn From trading this cryptocurrency, because of its danger to the financial system.
The dangerous thing, as was said by the experts about Bitcoin and others, is that it is unstable and has disturbances in the value of its prices, as a result of the uncontrolled global speculation that takes place on it, which makes this investment in it risks and potential losses that no one will have mercy on you, because it is a transaction that has no physical assets. It is tangible, and it does not have any control from a responsible party in the world, and this currency lacks guarantee and official government support.
In fact, a large number of countries, as we are witnessing in 2022, are fighting dealing with this currency and its company, especially in Arab countries, and even reached a fine and imprisonment, and all of this is in the interest of their security and the safety of their economy.
What is the future of digital currencies?
Many ask about the future of digital currencies. In fact, the future of digital currencies is unknown and unknown, but there are theories and great discussions about its future, as most investors are heading towards it directly.
Many countries are fighting the digital currency, and some receive it with full welcome and from all sides, but in my personal opinion, I see that this currency, with its path, will impose itself on the world, because some major capitalist economies have actually succeeded in dealing with it and containing it, and making it under the eyes of central banks.
cryptocurrency currently remains very weak because without dollars it is not worth anything, because the dollar is the important factor in its evaluation and circulation, which means that it has not yet gained complete independence.
Ruling on investing in digital currencies
Ruling on investing in digital currencies, most scholars stated that it is not permissible to trade virtual digital currencies such as bitcoin due to the ignorance of the issuer of them, and the limited recognition of them, and there are many reasons mentioned by scholars about not dealing with such encrypted currencies.
Among the things that scholars have prohibited regarding the permissibility of dealing with digital currencies are as follows:
1. Her dealings are unknown, and you may deal in wine and the moon without your knowledge while you invest your money in it.
2. Secondly, the state did not officially adopt this currency as a monetary currency, which is what is expressed by the jurists: minting money. It came in the royal rulings on the authority of Imam Ahmed that he said: (It is not appropriate to strike dirhams except in the house of beating, with the permission of the Sultan, because if people are permitted to ride great things).
3. Bitcoin has no real assets or refusal, and it has no connection with official financial institutions, banks and the like. In other words, it is considered an unknown currency in all aspects.
4. It is not protected by any financial controls or laws, and is not subject to a supervisory authority.
5. Huge heights may rise or sharp falls, exposing them to damage and loss.
6. This digital currency is harming economy of countries.
7. Dealing with these digital currencies is similar to gambling, which is forbidden in the law of God.
8. Dealing in it may lead to the loss of the rights of many people, and the unjust consumption of their money.
9. The cash must include 3 features, the first is that it is a criterion for evaluation, the second is that it is a storehouse of wealth, and the third is that it is based on a general acceptance of a general discharge.” These three conditions are not found in digital currencies. God Almighty is higher and knows best.