A Beginner’s Guide to Investing in Crypto

Although some talk around how cryptocurrency is doing right now might be a touch gloomy, that doesn’t mean this is the end; far from it, in fact. The markets have been hit hard before, and they’ve bounced back stronger, so we could be witnessing something very similar now. If you’re looking to get started with investing in crypto, look no further than this beginner’s guide!

Choose how much cash to invest

Only you will know just how much cash you want to set aside in order to invest in cryptocurrency. The important thing is not to dent your bank balance too much; the amount you invest should be a comfortable figure for you, and it shouldn’t harm your finances. You could even consider taking out personal loans in order to invest, then paying them back with the proceeds. Of course, you should only do this if you’re absolutely certain you’ll be able to pay back the loan afterward.

Decide whether you want to use a broker

Cryptocurrency brokers will deal with the hard part of the investment for you. They’ll interact with cryptocurrency exchanges, buying and selling based on what the markets look like at that current time. In return, they’ll usually take a commission, which represents a percentage of the amount you make while trading. You can decide whether or not this is a good option for you; if you think you understand the markets, then you may not need a broker, but if you’re a beginner, it could be a good idea to use one.

Choose an exchange

There are plenty of cryptocurrency exchanges out there, so make sure to shop around and play the field a little before you decide which one is right for you. Each will have different advantages and disadvantages; some exchanges will charge higher fees, for instance, while others are geared towards beginners and will present friendlier interfaces and offer more useful tips for first-timers. It’s all about what you personally want from a cryptocurrency exchange.

Make sure your exchange supports fiat currency

Some cryptocurrency exchanges don’t accept fiat currency, instead dealing exclusively in crypto. As a first-timer, you need to make sure that your exchange accepts fiat currency because you won’t have any crypto to deal in at first. Most beginner-friendly exchanges, which include apps you can download on your smartphone, will allow you to use fiat currency to buy into the cryptocurrency of your choice, so you’ll have plenty of different options to choose from.

Pick a Cryptocurrency

If you’re a first-time investor in cryptocurrency, then you may want to pick an option that has a lot of clout, like Bitcoin or Dogecoin. These currencies fluctuate, just like any other cryptocurrency (it can be a volatile market), but they are more reliable than some of the lesser-known alternatives. Whatever you decide, just make sure that you’ve thoroughly researched the cryptocurrency you want to buy into so that you’re aware of the risks and potential rewards of your investment.

Set up a Crypto Wallet

It’s important that you have somewhere to store your cryptocurrency when you’ve bought it. Usually, crypto exchanges will come with their own wallets, but if you don’t want to use those for whatever reason, then there are lots of other options out there. Generally speaking, there are two main kinds of cryptocurrency wallets.

Understand the Risks of Cryptocurrency

While trading in cryptocurrency can be potentially lucrative (and there are a host of other benefits as well), it’s important to understand some of the risks inherent in engaging with this process. Here are some of the things you need to be aware of when it comes to trading cryptocurrency.