If you want to take advantage of the cryptocurrency at its ground level, you’ll have to act fast. The year 2017 showed tremendous increases in digital coin investments as a whole, 2018 and the coming years will be no different! Therefore, to get involved in cryptocurrency investment then you’ll some of the tips in this article.
1. Purchase Bitcoin
The fuel for cryptocurrency is the first digital coin ever invented – Bitcoin. While Bitcoin is relatively slower, more costly, and a bit basic, it still serves at the measure of the success of another cryptocurrency (called AltCoins).
You can obtain Bitcoin on a major distributor website such as Coinbase or a smaller more entrepreneurial entity such as CoinMama. Acquiring your first investing funds is as simple as proving as well as verifying your identity and linking a credit card or bank account.
“But I don’t want Bitcoin. I want another coin.” True, but in order to easily obtain other coins, you’ll use Bitcoin to exchange into it. This is called a Bitcoin Pair – when the value of an AltCoin is compared to the value of Bitcoin.
2. Sign up for an exchange marketplace
There are many exchanges out there, but you’ll want to stick with the reputable exchanges. Note that each exchange offers a different variety of coins. If you want a very specific coin then you’ll have to research what exchange offers it. Three major exchanges – just three of many – are Binance, YoBit, and KuCoin. Reviewers of these three exchanges have a lot of good feedback to report in regards to quickly signing up for an account, getting your identity verified, and making your first purchase.
One of the first things you’ll notice is the sheer abundance of cryptocurrencies to choose from! It can be quite intimidating at first, but you shouldn’t let that deter you.
3. Diversify your investing
Some investors prefer to put a large majority of their funds into a couple coins and hope for the best. This is a good tactic when you have learned everything there is to know about a coin. However, because the market for each and every coin is unpredictable, it would be a much wiser move to invest a smaller amount in 10-20 coins as you learn more about the cryptocurrency world. Then once you have a good idea what several coins you think will be successful, then place a larger investment in those.
4. Keep your account safe – use 2-Factor Authentication
It’s unlikely you’ll be withdrawing your investment from an exchange for awhile, so treat your account on an exchange like a bank account with a large sum of money. There are so many phishing, malware, and virus-laden sites out there that seek to steal your identity on these exchanges. Two factor authentication (2FA for short) adds another layer of protection. If or when you do hit it big, you’ll not be an easy target for hackers.
5. Do not tell anyone how much you’re invested
When someone gains their first major return on investment, they feel the urge to tell people about their success, especially online. However, if someone learns of how much you possess in cryptocurrency it could paint you as a target for hacking. For example, malicious users will research your name or username to find out all they can about you. It’s best to operate in complete anonymity online.
Likewise, you should not be so eager to tell friends and family how much you earned investing in cryptocurrency. Yes they might be supportive and offer their congratulations, but they might also have jealousy or contempt. Even more likely is that you’ll suddenly become the crypto expert in their eyes, and you’ll receive a multitude of small and annoying questions!
6. Don’t invest foolishly – treat this similar to entertainment funds
When you go to the casino, do you expect to hit a big jackpot? Absolutely not! You prepare for the worst and hope for the best. It’s no different trading/investing in cryptocurrency. It’s a very, very volatile market, and you’re liable to lose everything that you put in. Therefore, don’t contribute a large percentage of your investing assets into cryptocurrency. Another question you can ask yourself is, “How much would I be okay losing if the worst case scenario happened?” Whatever figure you answer, that’s likely a good amount.
And finally, remember that you can start small and build up over time. Your investing doesn’t have to be one large investment all at once! You can contribute once per week or once per month. The exchanges listed above make it easy to buy little by little.
If you operate cautiously, maturely, and patiently, you’ll not only have a chance to make a positive ROI, but you’ll learn a lot about the emerging world of cryptocurrency as well!