Cryptocurrency is a hot topic these days, and some people have made a lot of money from investing in it. But unfortunately, there are also people who’ve lost money. If you’re new to cryptocurrency investing and want to know how to get started, this beginner’s guide will help you do just that: Invest smartly and safely.
How Beginners Can Invest in Cryptocurrency
Cryptocurrency is a form of digital money that uses cryptography to secure transactions and control the creation of new units. It was first introduced in 2008 by a person or group known as Satoshi Nakamoto.
The first cryptocurrency was Bitcoin, which still remains one of the most popular cryptocurrencies today. Other popular cryptocurrencies include Ethereum, Monero and Litecoin among many others.
Choose a Cryptocurrency Exchange or Broker
As you can see, there are many different cryptocurrency exchanges and brokers to choose from. To help you make the best choice for your situation, we’ve put together a short guide on what factors to consider when choosing an exchange or broker.
- What is a cryptocurrency exchange? A cryptocurrency exchange is an online platform where users can trade fiat currencies like USD for other cryptocurrencies like Bitcoin or Ethereum. Some exchanges also allow users to purchase ICO tokens with fiat currencies. When you choose an exchange, look for the one that supports a wide range of currencies including NFT coins and trading pairs such as BLUR/USDT and many more.
- What is a cryptocurrency broker? A cryptocurrency broker connects investors with traders who want to sell their coins at market price without having to go through an intermediary exchange site first (although some brokers do offer this service). They typically take less commission than traditional exchanges do as well as provide more flexibility when executing trades because they don’t require KYC compliance procedures before allowing anyone to sign up as long as they’re willing to pay higher commissions per trade order executed through their platform.
Create an Account
Once you’ve decided on the cryptocurrency exchange or broker, it’s time to get started. The first step is creating an account.
When setting up your account, it’s important that you create a username and password that are easy for you to remember but difficult for others to guess. You should also make sure that there is no chance anyone else can access your account.
You may want to consider using two-factor authentication as well if possible, which requires users entering additional security codes before they can log in; this greatly reduces the risk of hackers gaining access through finding passwords through phishing scams or other methods like keylogging software.
Deposit Cash
You can deposit cash into your exchange account in a variety of ways. Most exchanges will allow you to deposit via bank transfer or credit card (Visa, Mastercard and American Express). However, these methods often have high fees attached and may take longer than others.
Choose a Cryptocurrency to Buy
Choosing the right cryptocurrency to buy can be a difficult task. There are hundreds of different cryptocurrencies to choose from and each one has its own unique features, so finding one you understand is important. The market cap is also something to consider when choosing a cryptocurrency because it shows how popular it is among investors.
Choose a Storage Method
The first step to investing in cryptocurrency is choosing a storage method. There are several options available, but your choice will depend on how much money you want to invest and how long it will take for your investment to reach its full value.
- Cold Storage: This involves keeping your cryptocurrency offline in an air-gapped computer or USB drive that has never been connected to the internet. It’s considered one of the safest ways of storing cryptocurrency because no hacker can access it remotely or steal from you by accessing through malware or viruses.
- Hot Storage: This involves keeping your coins on exchanges like KuCoin or Binance where they are easily accessible online but at risk if hackers attack them. The benefit here though is convenience since all trading activity happens within minutes rather than days.
Which Cryptocurrency Is Best for Beginners?
The most popular cryptocurrency is Bitcoin. It has the highest market capitalization, number of users and liquidity. Bitcoin also has many exchanges that trade it, making it easy for you to buy or sell your coins whenever you want.
Bitcoin is not the only option though; there are other cryptocurrencies out there which may be more suitable for beginners than the original digital currency.
What Should You Do When Investing in Cryptocurrency?
When investing in cryptocurrency, there are a few things to keep in mind:
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Read the white paper.
The white paper is an official document that explains the project and its goals. It’s usually quite long and can be difficult to understand at first. However, reading this will help you learn more about how the project works and what it aims to achieve.
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Stick to your trading plan
A trading plan is essential for any trader because it helps them stick with their strategy even when things get tough or volatile on the markets. This will allow them not only stay disciplined but also make sure they don’t lose money during periods where volatility is high.
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Target prices and stop-losses
When setting targets for investments – whether buying or selling – always set a target price ahead of time so that if crypto prices, including BLUR price, go up beyond where they were originally intended, you can sell immediately instead of holding onto something until after reaching its maximum potential value which may never happen at all.
Avoid Timing the Market
If you’re new to investing, it’s important to know that the market is unpredictable. You can’t predict when the market will rise or fall–and trying to time your trades based on news headlines or economic reports can lead to losses. Instead of trying to guess when crypto will be at its highest value, use a long-term strategy: buy and hold.
Only Invest What You Can Afford to Lose
When you’re investing in cryptocurrency, it’s important to only invest what you can afford to lose. If you’re not comfortable with this risk and don’t want to take the chance of losing all your money, then maybe cryptocurrencies aren’t for you.
Be Wary of Cryptocurrency Scams
Cryptocurrencies are not backed by the government, so they aren’t safe. Be careful of scams.
- Don’t get scammed by buying into a scam. Invest only what you can afford to lose.
- Don’t invest more than you can afford to lose in cryptocurrency investing because it is a risky and volatile market with high potential for loss due to its nature as an emerging technology that hasn’t been tested enough yet by regulators worldwide (like SEC).
Conclusion
The cryptocurrency market is still a very new and volatile asset class, but it’s also one of the best opportunities for anyone who wants to get involved in investing and make money. With so many different cryptocurrencies available to buy and sell, you can use this guide as a starting point for your own research into which ones might be worth investing in.
