Beginner’s Guide To Cryptocurrency Investment: How To Start Investing In Crypto?
Cryptocurrency investment for beginners is not an easy task because its a relatively new field of study with limited data online.
First of all, What is cryptocurrency?
A cryptocurrency is a digital form of currency whose transaction is verified and recorded by a decentralized system. It is not regulated by any government or institution and has no central administration.
Unlike in centralized systems of finance, cryptocurrency transactions are difficult to manipulate due to their decentralized nature, and which is the major drive for cryptocurrency adoption.
There is numerous cryptocurrency in the market today. Bitcoin is the first cryptocurrency that existed, and it was created in 2009 by Satoshi Nakamoto.
Outside Bitcoin, there are bundles of altcoins, both Defi projects, NFTs, among others.
It’s noteworthy that Bitcoin remains the king of cryptocurrency to date. This bitcoin dominance is mainly attributed to a first-mover advantage.
Ethereum is the second-largest cryptocurrency by market capitalization. It’s a Defi project(decentralize finance)which enables smart contract. It is the most actively used blockchain in the crypto sphere. This project was conceived and delivered in 2013 by Vitalik Buterin, a renowned programmer.
There is a lot of crypto project out there, as time goes on you will get familiar with them.
There are several ways you can start cryptocurrency investment. But as a beginner, it’s advisable to get yourself familiar with the field before throwing your money into it.
In 2006 when I started my crypto journey, I was a complete novice. I started with Airdrops and Faucets. This helps me get familiarized with different types of crypto projects. I sooner graduated to investing and HODL. Recently I started trading when I became more successful in the field.
How To Invest In Cryptocurrency For Beginners?
As a matter of fact, so many financial institutions do not transact on cryptocurrency, and for that reason, cryptocurrency investment remains in its network.
However, it’s strongly advised to allocate just a small portion of your investment portfolio in cryptocurrency because it’s a highly volatile asset. Invest only what you can afford to lose is the language of courage and caution for crypto investors.
1. Choose your cryptocurrency: This is where familiarity with different cryptocurrencies comes to play. This is where the confusion comes in as a beginner. There is a lot of cryptocurrencies out there. Some come and go without standing the test of the market. And there is no much data about cryptocurrency for research purposes because everything about cryptocurrency started in 2009.
Nonetheless, Bitcoin and Ethereum remain the most popular and most used cryptocurrencies. They are also more reliable because they have stood the test of time. Although some smaller altcoin performs more than Bitcoin and Ethereum, they remain the King and Queen in the crypto market.
Selecting a Coin to invest in has never been an easy task, but there are rules to follow to figure out a possible good project. Which is the fundamental analysis of the protective project, such as the credibility of the persons involved in the project, the size of the project community, the use case of the project, the problems which the project tends to solve, among others.
For a more informed decision, you can use a Robo advisor to figure out a project with huge potential. If this is what you actually want, Token Metrics is the leading cryptocurrency research platform that leverages machine learning. Learn More…
2. Where To Buy Cryptocurrency: There are so many cryptocurrency platforms where you can purchase cryptocurrency. They have their advantages and disadvantages.
Hereunder are three among the most commonly used cryptocurrency platform online, which I personally use also in my crypto transactions.
(a) Binance
(b) Crypto
These platforms are newbie-friendly, and they offer a lot of bonuses and earning opportunities which you will unveil as you start using them.
3. Storage and Security: The security of your cryptocurrency is the most important thing to consider as a crypto investor. Because so many people have lost their hard earn money from trading platforms. It’s advisable to transfer your crypto to a secure wallet immediately after buying because trading platforms are the target of hackers. So many platforms like Altsbit, Bitrue, Cryptopia, among others, have suffered black hat attacks.
You should get a secure wallet such as:
Trust Wallet
MetaMask Wallet
Exodus Wallet
You can download these wallets from your mobile Play Store, they are totally free. For a more secure mode, a hardware wallet is advised. You can get a Ledger Wallet, the most secured hardware wallet online.
NOTE: that I am not a financial adviser, and that trading and investment are risky. So, do not rely on the information here to make any investment decision. The information here is only for recreational and amusement purposes. Should you want to invest your hard earn money do thorough research on your own. Thank you for your understanding!
