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The exponential growth of the cryptocurrency sector in recent years has generated as much fascination among a part of the general public as skepticism among the vast majority.

The reasons for the lack of confidence, in addition to the absence of a shortage in the second group during the first half of 2022, a period that witnessed a decline in reliability and liquidity for some. The large global companies that ended up in bankruptcyHow Celsius or Eartheven local like 2gether.

The expansion of the cryptocurrency market has also led to the emergence of Opportunists ready to make their own August, Exploiting the lack of knowledge regarding the sector which is still prevalent among a part of the society.

For all these reasons, the Investment Magazine He wanted to dedicate his number 1299, published on September 9, to provide some evidence that allows differentiating Reliable investment tools and those that are notHow to take the first steps safely in the cryptocurrency sector.

Some of the clues also revealed by those responsible for publishing on the finance.com podcast devoted to cryptocurrency, paperwhose last episode discussed the main red flags to spot when deciding where to deposit money.

No regulation of cryptocurrency

Una de los primeros puntos a tener en cuenta a la hora de invertir en criptomonedas es que, al contrario de lo que piensa una gran mayoría de la socioedad ​​española, este no es un sector regulado y, supervisor por tanto, organism escapa del control , How CNMV or Bank of Spain.

“Scan for CNMV He warns that 40 percent of Spanish investors in cryptocurrency believe that it is a regulated and supervised market. This is indeed a very dangerous starting point. […] This confusion is already driving this market down a very bad path,” explained Alejandro Ramirez, Director Investment Magazine.

Faced with this lack of regulation, panelists stressed that it is important not to rely exclusively on fillers by companies that highlight registration in one institution or another, such as in Anti-money laundering list issued by the Bank of SpainBecause that does not mean that these entities are subject to financial control.

Podcast participants also noted that this regulation is on its way, thanks to projects such as European MiCA, which seek to define the rules of the game in the field, so far, of It was more like the American Wild West than a safe place..

“A good way to know which platforms are trustworthy and which are untrustworthy is to see who is pushing MiCA forward,” noted Rafa Ares, co-host of La Mina.

Importance of information when choosing a project

Once it is clear that investing in cryptocurrency has a higher risk than other traditional tools, not only due to its lack of regulation, but also due to the high volatility associated with the sector, it is important to decide which projects you want to invest in.

To do this, a good way to do this is to review a file white papersor basic books of various cryptocurrencies, in which not only the purpose of a token or crypto is explained, but also basic information about the company responsible for it is provided.

And if commercials dominate the company’s hiring structure, and technical positions are scarce, for example, then alarms should be raised.

María Gomez Silva, editor of Finanzas.com and Inversión magazine, spoke during the podcast about a fairly effective cotton test to check if it had liquidity, regardless of the company’s reliability.

“One idea is to withdraw the interest and leave the invested capital. Because if you see it’s starting to hit you, delay in getting the money back… All alerts should be triggered, and of course reported,” he said.

Run away from false promises of success

This separation of grain and straw from a previous study of a project that intends to sell cryptocurrency, or a company that guarantees that it can provide an exorbitant return, is important because it can help prevent fraud.

Scams in the cryptocurrency world come in two main ways. With companies asking for money to invest on behalf of their users, and academies promising to teach “how to get rich in a matter of weeks,” rather than understanding how the underlying technology of cryptocurrency works and applying it to the financial sector.

However, either way, it’s important to remember a major premise, as they emphasized on the finances.com podcast: “When someone promises a tough peseta, you should be suspicious.”

“It is better to invest directly in cryptocurrencies through your own wallet. If someone tells you to give them money, they invest for you thanks to an algorithm, for example, and it will give you X returns, the best thing to do is to dismiss it,” he was precise during the discussion.

Tricks from financial bars They have now switched to crypto beach bars because they saw the opportunity and used the same tools as always, that you would make a lot of money, that they had the key to success… and if you were a millionaire, why would I share it? “

Thus, to start investing in cryptocurrencies, one must be very clear about the market risks, be aware of where each euro will be deposited, and escape from the utopia of luxury and easy money that is often associated with shady investments. The Road.