This year, one of the major things you must learn to be financially free is how to invest in cryptocurrency. It’s one of the major gateways to financial freedom.
Cryptocurrency is an online money, like bitcoin, which can be used for investment, though it is risky, or it can be used to purchase goods and services. Crypto money cannot be controlled by the government or the bank, but it can be controlled by the user. If you are looking for another source of investment, then try investing in cryptocurrency.
Cryptocurrency is controlled by blockchain technology, this technology records every transaction and makes it transparent for every user to see which makes it secure and once a transaction is made, it can’t be changed. Each user unit is called either coins or tokens which depends on how they want to use it.
What are the things to know before investing in Cryptocurrency?
Cryptocurrency is a risky investment, and it is important to know some factors and do some research before deciding to invest in it.
- You need to know the type of cryptocurrency you want to invest in because there are many types of cryptocurrency in the market. There is a need to look at the differences in how they operate to pick the tokens for your investment portfolio.
- It is very important to know the risk involved in cryptocurrency before investing in it. To avoid your investment from crashing eventually you need to set clear insurance rules.
- You need to also know how much you can lose that will still meet the goal you have set for your finances because putting all your savings or other plans into cryptocurrency can lead to a total loss.
- Make your research and know the right timing for investing as the crypto market always fluctuates, this will help you to know when to buy the dip or dump tokens.
- Always look out for fraudsters because there are a lot of them on social media who claim to know about the crypto market.
- It is also important to have a plan for your cryptocurrency investment. This includes having a plan of selling their token once the price reaches a particular level.
A Beginner’s Guide on how to Invest in Cryptocurrency
Do you want to take a step in investing in cryptocurrency but you are uncertain about the right step to take? Then this article is for you, with a well-detailed step-by-step on how to invest in cryptocurrency
1. Select a Cryptocurrency Exchange
I will recommend registering an account on Bybit Exchange. Use this link to register.
Cryptocurrency exchanges are platforms which makes it easy for users to buy and sell their coins or tokens. It supports the dealing of other digital benefits, they are also advantageous and safe to use. Centralized Exchanges are run by a solitary group or organization, they promote exchanges and many other financial services. Decentralized Exchanges are technology platforms that permits exchangers to associate directly to one another for person to person transactions.
The steps to buy your first cryptocurrency include:
- Do your research and pick a well respected cryptocurrency exchange
- Record your exchange and put money into your wallet.
- Carry out the required steps to complete a transactions
- Keep track of your crypto wallet and confirm the success of your transaction
2. Know the Cryptocurrency you want to invest in
It is important to know the best cryptocurrency to invest in especially as a beginner. Coins like bitcoin or ethereum are what most beginners invest in out of the thousands of crypto coins we have because they are worth the investment, generally accepted and more secure than new coins.
Bitcoin is controlled by a decentralized technology network, it has high convertible assets and its market is secure compared to other coins. Ethereum has a potent technology programme for creating decentralized applications and a huge order of token makes use of the ethereum network.
3. Generate a Safe Wallet
You can secure your wallet since you’ve known your cryptocurrency exchange and the type of crypto you want to invest in. Crypto wallet is a software that helps to secure your cryptocurrency and keeps your password you use in signing in for your transactions safe.
There are some steps you need to take in generating your crypto wallet, this includes:
You need to pick a wallet provider you can rely on because there various wallet options in the digital market and each one of it has its own outstanding features, that is why it is important to do a complete researching before selecting a wallet option
You need to download the wallet app on your phone once you’ve picked the wallet you want to use, this guarantees you to have access to your crypto funds anytime.
You need to create an account after installing the app and the fill in the necessary information needed
Then you can transfer your funds into the wallet app once you are done creating an account
4. Do your first purchase
For your bitcoin purchase, you can decide to buy a whole coin or buy it gradually. To purchase bitcoin can look like a difficult thing to do but once you know the right steps to take then it becomes very easy to buy, the steps include:
You need to select a bitcoin exchange. And before you select the coin exchange to use you need to do your research and know if the exchange is acceptable in your country and check if the fee is affordable
You need to set up your account once you know the exchange rate you want to go for and then make a deposit into your account.
Then you can proceed to buy bitcoin once you’ve set up your account and deposited money into it.
Then you also transfer it into your crypto wallet which is highly advisable because it helps to protect your funds and give you access to it anytime
5. Lay down a Strategy
You need to have a plan for your investment to be successful because cryptocurrency is not just about buying coins or tokens. An investment strategy will help you to make profit even from price fluctuations. It will also help you to always make the right decisions related to your coins. An investment strategy will also help you take advantage of what is going on in the digital market and prevent you from making a quick decision.
Conclusion
As rewarding as cryptocurrency, it has its own challenges and risks. This article provided a guide for beginners on what cryptocurrency is and how to invest in cryptocurrency. The key to a successful cryptocurrency is to always do a thorough research, don’t rush into putting money and ensure your wallet is secured.
Frequently Asked Question
How to know when to buy crypto for beginners?
If you want to buy a coin it is better to buy it during weekdays when the market is most active than on weekends when the price drops because of less activity in the market. Cryptocurrency can be traded any time of the day but the market is more active during work hours.
Where can I invest in gold?
Gold is one of the means of exchange for years. There are various ways to invest in gold and this include: buying gold bar or investing in company that mine gold
What is USDT?
USDT (United States Department of the Treasury) is used by millions of users every day to trade and do transactions on different technology networks and it is intended to give a steady exchange rate.
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