How To Get Into The Cryptocurrency World- Although cryptocurrency has been around for over a decade, many people who want to invest still find the crypto market difficult and overwhelming. The best bit? Getting into crypto investment and trading is not rocket science and as a first-timer, with proper study, you’ll find getting in easy.
This article explores how newbies can venture into the world of cryptocurrencies. Ensure to read carefully and digest these handy tips.
5 Tips on How To Get into Cryptocurrency World in 2023- Trading and Investment
The two largest and most popular cryptocurrencies are Bitcoin and Ethereum and both are sold for $16,000 and $1,200, respectively. Due to this high price, most beginners tend to believe that cryptocurrencies are expensive.
On the contrary, it is not always like that. Those coins are expensive because they are the largest but not the only currency you can trade in. therefore, the best way to enter the crypto world is to identify the fastest-growing cryptocurrencies that are available at a low entry price.
Hence, the crypto presales. If you participate in the crypto presale, you will have the opportunity to buy cryptocurrencies at a lower price than the usual price on the open market. Aside from this, you will also benefit from the potential increase in the value of the cryptocurrency as the coin or digital token develops and gains traction.
Some of the best crypto presales in 2023 include; Metropoly, Love Hate Inu, and Securedverse, to mention but a few.
After knowing how to get crypto at a cheaper rate, educating yourself on the nitty-gritty of cryptocurrency is the next thing to do. Firstly, get familiar with the most used and popular cryptocurrency terms. Words like meme tokens, HODL, wallets, and exchanges will be used. Try to check out those words and learn them.
It is also important to learn about cryptocurrency regulations in your country. While some country accepts and allows crypto trading, some don’t and some put a limitation on the trading of these digital assets.
Understand that as much as the crypto world is not as popular as physical currency, a lot of people are trading within them. Therefore, to excel in crypto investment and trading, you have to develop a strategy to get the best out of your investment.
In light of this, there are two major strategies you can opt for; it is either you make a long-term investment or you subscribe to a short-term investment.
● Short-term Trading: If you’re considering short-term trading, it’s important to understand that technique of trading involves taking a position that can last from seconds to several days and focuses mainly on price action rather than long-term fundamentals.
You’ll need to be comfortable with market volatility and be prepared to monitor economic data releases, company earnings, and political events, basically, be updated about the going on in the financial market.
Short-term trading can as well be called active trading, and it involves making frequent trades using derivative instruments such as CFDs, spread bets, etc. While short-term trading can offer the potential for higher profits, it’s important to note that it involves a higher level of risk than longer-term investing. Therefore, it is crucial to have a deep understanding, knowledge, and experience of the technique before diving in.
● Long-term Investment: This strategy is the best if you want to be on a safe mood as an investor. Basically, to make a long-term investment means that you will buy a cryptocurrency and hold the digital token for years at a time. This strategy is commonly called ‘Buy and Hold’ or HODL. this method takes a lot of time and patience and it is mostly adopted by investors because it is believed that the value of cryptocurrency will appreciate in the long run.
Frankly, investing in crypto as an amateur might be boring and difficult. This is because cryptocurrency investment requires technicalities, and most traders rely on technical indicators and other investment tools before they make any purchase or sell decision.
Therefore, you must learn the business thoroughly to avoid making a grave error. However, if you are already into crypto-trading, it is important you have a proposed strategy before buying any cryptocurrency. This will assist you to make a more informed strategy.
Before buying any digital token, you should learn how to safely store your crypto coins. In case you are unaware, cryptocurrencies are stored in a digital purse called ‘Cyrptowallet’. Simply put, your cryptowallet is a software program designed to store your digital assets, such as Bitcoin, Ethereum, or any other cryptocurrencies you own. It allows you to send and receive these digital token and also allow you to view your transaction history and balance.
In your crypto wallet, you have two important pieces of information: a public key and a private key. Your public key contains your address and account number, which you can share with others to receive cryptocurrencies. While your private key is a password that should be known by you alone. It is a unique code that allows you to access and spend the cryptocurrency in your wallet.
Importantly, note that cryptocurrency wallets don’t actually store your coins, but rather they store your private keys, which allow you to access your coins on the blockchain. Hence, the importance of keeping your private key private!
After learning how to get your cryptocurrencies and have them stored safely, the next thing to do is to choose a broker or exchanger from whom you can buy digital assets. However, there are a lot of brokers and exchangers out there, therefore, choosing the right one might be difficult.
Below are some of the factors you need to consider when choosing a broker or an exchanger;
● Security; This is the most important factor to consider. Ensure the broker exchanger you opt for is reliable and has a strong security measure to protect your funds from fraudsters and hackers.
● Reputation: Also check the reputation of the broker and exchanger before you invest. Check out reviews and ratings of the exchanger online or from other users to get an idea of how their experience was.
● Fees: Consider the fee of the broker and exchanger when choosing one because high fees might swallow your profits.
With these factors, you will be able to choose an exchanger or broker that will meet your needs. Some of the popular exchangers and brokers that you can consider include eToro, Gemini, Coinbase, Binance, Kreken, etc. Always remember to do thorough research on your brokers, compare fees, and then select the one that best suits you.‘
Undoubtedly, cryptocurrency has come to the world to stay and it has become a significant player in the financial market. Our article has provided several ways in which you can start your crypto investment and how you can increase your chances of making a profit.
Remember to gather as much knowledge as you can on cryptocurrency and learn to study the market and the reliable brokers or exchangers that would suit your need. This will help you make a more informed decision on your journey to getting rich in the crypto world.