If you want to take advantage of the cryptocurrency at its basic level, you will have to act quickly. The year 2017 showed a huge increase in investments in digital money as a whole, 2018 and in the coming years will not be different! Therefore, to be involved in investing in cryptocurrency, here are some of the suggestions in this article.
1. Buy Bitcoin
Cryptocurrency fuel is the first digital coin ever invented – Bitcoin. While Bitcoin is relatively slower, more expensive and a bit basic, it still serves to measure the success of another cryptocurrency (called AltCoins).
You can get Bitcoin on a major distributor website like Coinbase or another smaller business entity like CoinMama. Acquiring your first investment funds is as simple as trying and verifying your identity and linking a credit card or bank account.
"But I do not want Bitcoin, I want another coin." True, but to easily get more coins, you will use Bitcoin to trade you. This is called a pair of Bitcoins – when the value of an AltCoin is compared to the value of Bitcoin.
2. Register for an exchange market
There are many exchanges out there, but we advise you to stay with the reputable exchanges. Note that each exchange offers a different variety of coins. If you want a very specific currency, you will have to look for which exchange offers it. Three major exchanges – only three of many – are Binance, YoBit and KuCoin. Reviewers of these three exchanges have good feedback to report on the quick registration of an account, verification of your identity and the first purchase.
One of the first things you will notice is the sheer abundance of cryptocurrencies to choose from! In the beginning it can be quite intimidating, but you should not be discouraged.
3. Diversifying your investments
Some investors prefer to put a large majority of their funds in a couple of coins and hope for the best. This is a good tactic when you have learned all that there is to know about a coin. However, since the market for every single currency is unpredictable, it would be much wiser to invest a smaller amount in 10-20 coins while learning more about the world of cryptocurrencies. So, once you have a good idea on how many coins you think will succeed, then invest in the larger ones
4. Keep your account safe – use 2-factor authentication
You're unlikely to withdraw your investment from an exchange for a while, so treat your account in a stock exchange as a bank account with a large sum of money. There are so many phishing sites, malware and loaded viruses trying to steal your identity in these exchanges. Two-factor authentication (2FA at a glance) adds another layer of security. If or when you hit it big, you will not be an easy target for hackers.
5. Do not tell anyone how much you've invested
When someone gets the first major return on investment, he feels the urge to tell people about their success, especially online. However, if someone learns how much you have in cryptocurrency, they may be your target for hacking. For example, malicious users will search for your name or username to find out everything they can about you. It is better to operate in complete anonymity online.
In the same way, you should not be so eager to tell friends and relatives how much you have earned by investing in cryptocurrency. Yes, they could be supportive and offer their congratulations, but they could also have jealousy or contempt. Even more likely is that you will suddenly become the expert scrambled in their eyes and you will receive a multitude of small and annoying questions!
6. Do not invest foolishly – consider this similar to entertainment funds
When you go to the casino, plan to get a big jackpot? Absolutely not! Prepare yourself for the worst and hope for the best. There is no different trading / investment in cryptocurrency. It's a very, very volatile market, and you risk losing everything you've entered. Therefore, do not contribute to a large percentage of your cryptocurrency investment activities. Another question you can ask is: "How comfortable would I be if I lost the worst case scenario?" Whatever figure you answer, it is likely to be a good amount.
Finally, remember that you can start small and build with time. Your investment does not have to be a big investment all at once! You can contribute once a week or once a month. The exchanges listed above make it easy to purchase little by little.
If you operate with caution, maturity and patience, you will not only get a positive ROI, but you will learn a lot about the emerging world of cryptocurrency as well