It’s been 6 years since digital Currencies that can be used in the exchange of goods and services first made an appearance. The transactions which are made possible through blockchain technology are tracked using an online ledger with strong cryptography to make sure the connection for online transactions is secure.
Thousands of different cryptocurrencies have been introduced, with Bitcoin staying top of the list. Significantly, more people are investing in crypto. If you have the desire to do so, this article will make it easy for you.
Below are some ways to invest in cryptocurrencies.
- Decide Which Crypto You Want to Invest in
You can review online shops to help with your decision. Like it was said earlier, the number of cryptocurrencies exceeds 6000. There’s Bitcoin, Ethereum, Dogecoin, Tether, Binance Coin, Cardano, XRP, Dogecoin, Polkadot, USD Coin, among others. You can find a list of cryptocurrencies, research the ones popular, and decide which one to invest in.
- Allocate Assets to Cryptocurrency
Many people make the mistake of dumping a fortune into cryptocurrency. As with any other market, crypto is volatile and you could lose your money in one clean sweep. You can assign 4% of your portfolio for a start. As your faith in the market grows, you can invest more.
- Select an Exchange
This will let you buy, store and sell crypto. Some exchanges won’t allow you to transfer your crypto to your personal online wallet. So choose an exchange that tallies with your preferences.
Since this is an investment, you may want to avoid an exchange that offers anonymity to users as such an exchange usually has no point of control and is liable to be used for criminal activities. Use two-factor authentication and passwords that are unique to protect your account.
- Create a Wallet
To perform cryptocurrency-related transactions with ease, you need a crypto wallet. This wallet equally helps you withdraw and store crypto funds. Leaving digital funds on the exchange is not advisable because the exchange can get hacked and you’ll lose your investment. You can look for how to create a crypto wallet.
When your wallet and exchange account are created, your identity is confirmed. Then you need to connect the exchange to a means of payment. Some people prefer to link their exchange account to their bank accounts directly.
If you choose to do this, be sure that your bank supports crypto-related transactions. It is not safe to use your credit card as a payment option. Normally, an exchange charges fees for each transaction. Using a credit card will require a processing fee in addition.
There are different types of crypto investment because once you’ve completed the above steps, the next thing is for you to purchase Cryptocurrency. As much as possible, make sure your accounts are secure and invest only a fraction of your portfolio at the initial stage. With time, you can purchase more funds. And be aware that there are people who might be interested in diverting your funds, thus, you need to be on alert at all times.