Author: Shiloh Kelly
If you are new to cryptocurrency, you may have difficulty understanding the technology and how it works as an investment. While it may initially seem confusing, you can learn how to invest in a few steps.
This article will guide you on investing in crypto as a beginner.
How to start Cryptocurrency in Four Steps
Even though every cryptocurrency is somewhat different, as long as you are looking to purchase for profit, these are some general steps you’ll need to follow:
1. Select a Crypto Exchange
A crypto exchange is a platform where buyers and sellers meet to trade cryptocurrencies. You’ll need to choose an exchange platform to buy from; after selecting a crypto exchange, you can start investing.
There is a wide range of exchanges to choose from, but you need to consider their fees and simplicity.
While there are many options for you to choose from, some of the popular and user-friendly crypto exchanges include:
2. Create an Account
After selecting a crypto exchange, you’ll need to create an account. You may also have to verify your identity depending on the platform and the amount you want to purchase. This step helps protect users from fraud and maintains regulatory standards.
You may need to submit your driver’s license or passport and upload a picture to ensure that your appearance matches your submitted documents.
3. Deposit Funds to Purchase your Crypto Asset
Before you can start purchasing crypto, you need to have some money in your exchange platform account.
To deposit funds into your crypto account, you can link it to your bank account, initiate a wire transfer, or make payments with your debit or credit card.
Depending on the exchange platform you choose, you may have to wait a few days before accessing your funds to purchase your desired cryptocurrency.
You can choose from a wide range of options, but Bitcoin and Ethereum seem to be solid. You may buy a fraction of these coins as they cost thousands of dollars.
4. Choose a Storage Method
After you have purchased your cryptocurrency, it will appear in your virtual wallet. When you open a crypto account, you automatically receive a virtual wallet that holds the code for any cryptocurrency you purchase.
You can move your cryptocurrency to a different wallet, but you may need to pay a small transfer fee depending on the amount you want to transfer. You can choose to either move it to a hardware or software wallet.
A software crypto wallet is a program that holds your crypto and often operates online, while a hardware wallet is like a USB device containing your code. Hardware wallets are safer compared to software wallets.
Top Cryptocurrencies for Beginner Investors
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance coin (BNB)
Before investing in crypto, you need to understand the market’s volatility and ensure that you only invest what you can afford to lose. Investing in crypto can be a rewarding venture, but it’s essential to understand the risk involved.