Starting with the advent of Bitcoin to today’s world of meme coins, cryptocurrencies completely changed the face of financial investments. While the early investors of Bitcoin grew up to a new class of rich people, many meme coin traders also made substantial profits.
For beginners, that begs the question, “how to invest in cryptocurrency?” You can invest in cryptocurrencies on a variety of platforms like centralized and decentralized crypto exchanges, and brokerage platforms.
Beginners feel confused and intimidated to invest in crypto, not knowing that it is a simple process. In the present article, we help you invest in crypto with a step-by-step process.
Choose a Crypto Exchange Platform
The first step to invest in cryptocurrencies is to choose a crypto exchange platform. Crypto exchange platforms act as an interface between users and the complex world of crypto. Though there are many ways to buy cryptocurrencies, crypto exchanges are more convenient platforms for beginner investors.
Coinbase, Binance, Kraken are some of the best crypto exchange platforms that you can consider for buying cryptocurrencies. Each platform has its own pros and cons when it comes to investing in crypto. So, before choosing a crypto exchange platform, you need to consider various factors such as platform’s security, fees, minimum investment limits, supported payment methods, available cryptocurrencies and fiat currencies.
Create and Verify Your Account
After choosing a crypto exchange platform based on your investment requirements, you must create an account. This is an obvious and unavoidable step to access features, benefits, and other perks offered by the platform. Entering basic details name, email, password help you create an account and takes you one step further to buying cryptocurrencies.
One of the important things here is to verify your account and identity after creating an account. For that, you must upload government-issued identity cards, address proofs, and other required documents. Verification of your identity and address ensures that you comply with KYC and AML guidelines and that you are a legitimate crypto investor.
Decide How Much to Invest in Crypto
Cryptocurrencies are volatile and investing in them involves risks as the industry isn’t yet matured. The same volatility which makes the crypto market risky, also provides an opportunity to make profits when used the right way. Keeping the crypto market performance and its volatility aside, decide how much to invest in crypto based on your requirements.
Understanding your risk tolerance, which is how much risk you can handle in unfavorable situations, is the most important and best crypto trading strategy, among others. Instead of giving into the FOMO and investing a major chunk of your savings, start small when you begin and only invest what you can afford to lose.
Deposit Funds into Your Account
Buying involves funds, whether it’s cryptocurrencies, stocks, or everyday groceries. So the next step is to deposit funds into your crypto exchange account. Understand the platform and find out what kind of fiat currencies and payment methods it accepts.
Crypto exchanges platforms usually make it easy for investors to buy crypto by accepting fiat currencies and convenient payment methods such as credit and debit cards, online payment methods, and wire transfers. Choose the payment mode you are comfortable with and deposit funds into your account to buy crypto.
Choose Your Preferred Crypto to Invest In
The next step is to choose which crypto to invest in. There are different types of cryptocurrencies such as blue-chip cryptos, meme coins, utility tokens, and others. Best crypto ICOs help you find out new crypto with good future growth potential. But, you need to verify if they are available on your preferred crypto exchange.
Bitcoin and Ethereum are examples of blue-chip cryptocurrencies, which are good options for long-term investment. Meme coins are the best option if you are looking to capitalize on short-term hype and exit.
However, you must consider a wide range of factors before choosing a crypto to invest in. There are possibilities to come across crypto scams, pump and dump schemes, rug pulls in crypto. To avoid all these, you must evaluate a crypto based on factors such as the purpose of the project, long-term potential, team behind the project, whitepaper, website and social media, and others.
Select and Buy Your Preferred Crypto
Once you created a crypto exchange account, completed verification, deposited funds, and selected a crypto to invest in, the final step is to search for the crypto on your crypto exchange platform. You can select cheap crypto to buy to minimize the risks and get exposure to the crypto market.
Additionally, you can also choose new cryptocurrencies to buy, which will be available at lower prices. Next, enter the details such as the type of crypto, amount you would like to invest, payment details, and follow the prompts. Cross check all the information and confirm the transaction to finally invest in your preferred crypto!
Consider Digital Wallets and Storage Options
Since cryptocurrencies are intangible and digital assets, you need digital wallets to store them. Once you buy crypto on an exchange platform, it will automatically be stored in the exchange wallet. If you believe in the security of your crypto exchange, you can store it on the platform. However, there are also other methods to store your crypto securely.
You can choose a crypto wallet among top cold crypto wallets and top hot crypto wallets to store your crypto securely. Hot crypto wallets are convenient platforms to access your crypto and they are connected to the internet. On the other hand, cold crypto wallets are offline wallets and offer robust security. After choosing a crypto wallet, you can securely transfer your crypto from the exchange to your wallet