How to Invest in Cryptocurrency?April 23, 2022
New investors willing to buy digital assets may find the crypto market overwhelming. Experts opinionated the crypto market’s growth by scoring a valuation of $5 billion by 2030. Who would not be interested in buying and selling the digital asset to go by the prediction? But, how to safely invest is the question the new investors seek the answer of.
Before you put your money, it is vital to highlight that cryptocurrency prices are subject to fluctuation. You have to be careful when using a cryptocurrency exchange for safety concerns. You must also research the digital coin to ensure you are putting money in the right crypto. Here is a step-by-step guide for new investors looking for a rewarding return on each investment.
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Step-By-Step Guide to Crypto Investment
Your entire investment and its outcome depend on how you invest. So, the first step to investing is to plan a strategy. Before buying a digital asset, you should plan out the investment strategy.
Prepare your mind for the market fluctuations and understand the chance of winning and losing is equal. But, you can overcome the losses by setting a strategy. A strategic investment involves three steps.
Step 1- Shortlist Coins
To set an investment strategy, short-list digital assets. You can do so by reading through all the digital assets (which is impossible as there are thousands of coins in the market) or following an expert opinion. The latter option is most viable as it saves time and is backed by experts.
OKX, a crypto trading exchange, hints to its customers of profitable opportunities. Its website lists top traded, gainers, losers, and profitable digital assets. You can follow its advice to get an idea of where you should invest money.
Step 2- Allocate Funds
Allocate funds or decide the amount you are willing to invest in the crypto market. As a rule of thumb, you should never put all your savings in one place. Take some of it and invest while keeping a portion of it for the rainy days.
Step 3 – Decide Investment Duration
You should also be very clear about the duration of the investment. Are you looking for long-term investment, or is it short-term gains? You can decide how long you can hold the crypto coins based on the investment duration.
Once you have set the right strategy, you can move on to create a trading account and start earning. But before that, you should choose a platform.
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Choose a Platform
Now, as you have an idea of how much money you will invest and for what duration, you can move on to select a platform to trade in the digital assets. There are many promising platforms in the market.
You can choose the one with a low brokerage fee, provides expert opinion, has auto and manual trade options, and has provision to save assets in the wallet. Not all platforms are safe to use. You may have to do some research before starting trading in the crypto market.
Open an Account
Once you have decided on a platform, you will have to create a trader’s account. Almost all crypto trading platforms follow a similar process for opening an account that includes the applicant’s complete name, address, and bank details.
An authentic crypto trading platform will also verify the details provided by the applicant to ensure the safety of its users. You may have to provide KYC documents for verification.
Fund the Account
Once a trading account is active, you will have to make a minimum deposit to start trading. You can use various payment methods like PayPal, credit card, debit card, and net banking to fund the account.
The funds you allocate will appear in the wallet on the trading platform. Your financial details remain safe with the trading platform; still, you should read through the platform’s data protection policy published on its website.
Now, you are all set to trade in the crypto market. You have already short-listed digital assets, set strategies for investment, and allocated funds. Wait for the favorable market conditions and read through the latest crypto news to know when to invest.
Most investors take time to decide whether to put their money in the crypto market or not. It is okay to think and act. Investing in the crypto market requires caution as the market can be highly unpredictable at times. You may stay updated with social posts and news related to the crypto market. But it is your money and your efforts.
It is your decision that matters. Therefore, it is highly advisable to follow expert advice and set a proper plan for how you will invest and for what duration. You can always seek expert advice and prevent losses. All the best with your investment