Cryptocurrency investing has never been more promising and lucrative than it is at the moment, mostly due to the sudden surge of worth that the most prominent digital currencies have been experiencing since the end of 2023. Bitcoin and its cousins have been a very interesting chance to earn some money and become richer for anyone willing to risk a little bit and trust in modern technologies from their initial release more than a decade ago. In 2023, it looks like everyone should invest at least a portion of their savings into a virtual currency of their choosing since it is evident which direction the society is heading towards.
If you want to invest in one but have no idea how, worry not. The article beforehand serves as a guide on how to invest in crypto and how the whole process works. It does not matter if you are a complete beginner, everyone used to be one. It is rather easy especially once you set everything up. If you are interested in learning more about Bitcoin and other currencies as well as their wide potential, we advise you to check out the-blockchain.com and find out about some of its possibilities. In the meantime, let us explore what you need to do in order to start investing today.
1. Determine a Starting Amount
The first step when it comes to any sort of investment is thinking about how much you can spend. If the money is tight right now, you should not invest all of your savings into Bitcoin no matter how certain you are in it. Things can easily turn for the worse and you can end up without any money to your name. On the contrary, if you have saved up more than you expected, you have some breathing room and can invest considerably more.
Determining the amount and putting down a small percentage towards a career in cryptocurrency is the best strategy. Greed and fear are two opposing forces that guide each investment, and it is the balance between them that makes for the best possible business moves. Therefore, think about diversifying your portfolio and opt to have around 10% or so out of all of your initial investments in Bitcoin. Later, once you crack the game and get the hang of things, you can increase your investments and broaden your reach.
2. Pick the Right Currency
Now that you know exactly how much you wish to invest, it is time to determine what cryptocurrency to back up. Bitcoin is the obvious choice for many as well as the most often recommendation. It is worth most by far and it all basically revolves around it. As of the writing of this article, 1 BTC is worth exactly $38,182. For the better part of 2023 it floated around $20,000, only to surge at the turn of the year and reach the all-time high of over $40,000 on January 8, 2023.
It is probably going to stay above $35,000 for months now, meaning it is a great time to get in on the fun. The second most prominent digital currency, Ethereum, sits at $1,150. It also experienced a considerable jump recently. Litecoin is $147, Bitcoin Cash is $497, Binance Coin is $40, and so on.
What experienced investors tend to do is invest a little bit of money in a few different currencies, with the most going towards their Bitcoin fund. That way you can react quickly no matter how many of them experience falls or jumps in value.
3. Find the Right Platform
By now you know how much money you will be starting with and what cryptocurrencies you will be investing in. The next step to consider is where you will do all of your crypto business. Purchasing, selling, and trading of digital currencies is done on online platforms known as exchanges. A cryptocurrency exchange has all the services and other things you need to successfully do business.
All you need to do is open an account on their page, transfer some funds, buy an amount, and start trading. The most popular exchanges include Coinbase, Binance, Kraken, Terrexa, and CoinDesk. You will hardly go wrong by picking any of them as they are the leaders in the industry for a reason. Once you have your account, a world of possibilities opens up for you and you can consider yourself a real crypto investor and businessman.
4. Storing the Cryptos
If you are to do business with these new types of money, you should also be able to store them somewhere of course. In the modern world of digital money, this comes in the form of electronic wallets or ewallets (e-wallets) for short. There are four different types of these wallets. The first is desktop wallets that are installed on your private PC. This is a safer alternative as it is on your own computer where information is safer. The second type is online wallets, stored on cloud services and available for access through any computer. These are much more convenient and quite safe due to private keys that a third party controls.
Mobile wallets are located on smartphone and tablet apps and have the advantage of being able to help you on the go, as well as to make purchases anywhere where vendors accept cryptos as legitimate payment. Last but not least, there are hardware wallets that keep the private key to your balance on hardware devices like USB flashes. These are a lot more secure than online varieties and almost equally secure as desktop wallets. Mind that no wallet is directly connected to your name or address, as all that exists is a long string of numbers and letters that is essentially the address and the key to your balance. Nobody can tell who is on the other side of it based on this key alone.
Conclusion and Takeaways
That is all! Easy peasy, rght? There really is not much to it if you think about it. The whole process is straightforward as it can be. All you are left to do now is do research, explore the market, and develop your business skills with one goal in mind: becoming the best cryptocurrency businessman you can be and becoming richer and more successful than you were before.