How to start investing in crypto?

The hype around crypto has not subsided. Indeed, they can make one who makes the right investment in time, a rich man. Perhaps you too are thinking about how you can invest in cryptocurrency. No wonder, because there are a lot of successful examples on the Internet. Elon Musk and Barry Silbert are just a few of them. Before you begin your crypto journey, however, you need to figure out what crypto is, and what you should start with. Crypto quotes have fallen, which can be a good time for investments. We created this guide specifically for beginners who are not too well-versed in crypto. With its help, you’ll learn how you can start and what to pay attention to in order not to lose all your money. Well, let’s get started!

How profitable is it to invest in cryptocurrency these days? 

Nowadays, there are very few people left who have not heard of investing in cryptocurrencies, blockchain, mining, and other similar terms. However, in order to start investing in crypto, you have to go through a long process of researching this world. You will have to understand how to distinguish profitable projects for investment from unsuccessful or outright frauds, understand how much you should start investing in cryptocurrencies, and much more. If you can understand the world of crypto enough, know how to analyze it, and have enough money, time, and patience, you can invest in cryptocurrency and earn money.  But don’t forget about the risks, because you can not only make good money but also lose everything. The bottom line is that you can start making good money on digital currencies, and we will tell you how to do it in our guide!

What do you need to invest in cryptocurrency: a short guide

Before you invest in cryptocurrency, it is necessary to decide on a strategy. If a user wants to buy Bitcoins and forget about them for many years, it is better to withdraw them immediately to a cold wallet. Otherwise, it is worth using the services of an exchange. 

When choosing a crypto exchange for investments, you should pay attention to large and popular, as well as regulated platforms. This way you can reduce the risk of running into scammers and increase the chance of getting the compensation of funds in case of a hacker attack. When choosing a project for investment, it is necessary to carefully study the terms of the user agreement. Another important condition is verification. Regulated platforms require verification of identity to open an account or withdraw funds from it. The most common way to invest in cryptocurrency is on an exchange. Many exchanges allow you to deposit directly from your card or through a payment system. For this, an additional fee is charged.

To summarize the ways in which a beginner can invest in crypto are:

• Buy and store coins. You can buy popular coins such as Bitcoin or Ethereum, or you can buy lesser-known coins. For example, Dogecoin, Solana, and others. In the long term, there is a chance that their price will rise. But there are also risks that some crypto may disappear, which means you will lose money.
• Invest in crypto companies. These are companies that are partly or fully focused on cryptocurrency. For example, they are engaged in mining, that is, they mine crypto, produce equipment for mining, have large amounts of digital currency on their balance sheets, and so on.
• Invest in crypto-oriented funds. If you don’t want to choose among individual cryptocurrency companies, you can invest in crypto funds. They manage investors’ money so that they get a return on their deposits greater than the rate of bank deposits. This return must also exceed inflation. Crypto-focused funds can invest in cryptocurrency and crypto companies.
• Become a cryptocurrency miner or validator, who validates blockchain transactions and gets rewarded for it. You can keep it as an investment.
• Lend the coins or put them in a liquidity pool. A liquidity pool is a digital currency vault where a trader can quickly start crypto exchanges for one currency or another. You will receive interest or transaction fees for doing so.

Before buying, it is necessary to check the terms of withdrawal. They may specify, for example, a limit on the amount to withdraw per day. This information is most often found in the guides on the official sites. When selecting crypto exchanges, it is necessary to carefully review the conditions for registration and withdrawal. It is desirable to give preference to regulated, large and well-known sites. The best way is to use exchanges that offer a wide range of tools.

How to invest in cryptocurrency?

Crypto transactions go through your country’s central bank one way or another, but that doesn’t stop you from freely converting the currency into different tokens.  

• Choose an exchange. It is recommended to choose an exchange with a good reputation, which has existed on the world market for a long time;
• Register. You will need to provide your details and confirm your identity. So the exchanger will make sure you are not a scammer; 
• Refill your digital account. To buy any crypto, you need to replenish your personal account on the exchange with regular money, such as U.S. dollars. The method and details of funding depend on the service provider; 
• Decide which token you want to get. It is highly recommended to learn as much information about it as possible in order to avoid financial losses; 
• Store the coins in a digital purse. Once purchased, the information needed to access your tokens is stored in a digital wallet. The latter can be hosted on a crypto exchange, or you can connect to an external wallet.

How much money do I need to buy cryptocurrency?

The amount of money needed depends on the type of coin you are going to buy. Their price can vary greatly.  We hope our guide will help beginners to start investing in cryptocurrencies and the effectiveness of earning.