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- Find a Good Crypto Exchange
- Register an Account and Buy Your First Crypto
- Decide How Much Money You Want to Invest
- Pick the Crypto You Want to Invest In
- Move Your Crypto to Your Personal Wallet (optional)
- Frequently Asked Questions
Over the past few years, blockchain-based cryptocurrencies have become a massively popular method of investment. Millions of people around the world have tremendously improved their personal finances by purchasing digital currencies such as Bitcoin, Ethereum and other alt-coins.
While some people still believe that cryptocurrencies are complicated and can only be understood by computer experts, this is very far from the truth. As digital currencies got more and more popular, they also got easier to use, and investing in cryptocurrencies became accessible to anyone.
You don’t need any technical skills or previous blockchain experience to invest in crypto. All you need is a computer or smartphone, some funds to buy crypto, and a moment of your time to read this guide, which will show you how to start with cryptocurrency in just 5 easy steps.
1. Find a Good Crypto Exchange
If you know how much you want to spend and what to buy, you are ready to start with cryptocurrency investing. Fortunately, buying crypto is now easier than ever - numerous exchanges allow you to buy cryptocurrencies, and most of them also support user-friendly payment methods such as credit and debit cards.
When choosing the right crypto exchange for you, it’s best to follow the same rule as when choosing the crypto to invest in: stick to the big, respected names, and avoid small and shady projects that you’ve never heard about.
The largest cryptocurrency exchange in the world is Binance. It’s a highly secure, beginner-friendly exchange which operates in almost every country in the world, and supports many different local currencies.
3. Decide How Much Money You Want to Invest
Before you jump into the blockchain ecosystem and start investing in digital coins and tokens, you have to decide on the most important thing: how much are you actually willing to invest in crypto?
This step is the most important, since it will allow you to increase your profits and mitigate your risks in the future. The crucial rule to follow is “never invest more than you can afford to lose”.
Although cryptocurrencies are a great investment, you should never sell your car or take a loan to buy crypto. Only use the money that you won’t need to pay for necessities - that way even if the market temporarily goes down, your personal finances will not be damaged.
4. Pick the Crypto You Want to Invest In
After you’ve settled on the amount of money you want to invest, the next step is choosing which cryptocurrency you want to purchase.
This decision is not always easy. There are thousands of different crypto coins and tokens. Some are more profitable, some less. What makes things even more complicated is that the crypto ecosystem is full of influencers and paid advertisers who will do everything they can to shill you various cryptocurrencies which are not always high quality projects.
So how to start with cryptocurrency and avoid investing in low quality tokens? The best rule to follow as a beginner is simple: stick to respected and renowned projects and avoid small tokens which promise amazing profits but can’t prove their record of being profitable.
It’s usually the safest to invest in industry leaders such as Bitcoin or Ethereum - these cryptocurrencies have large teams behind them, and they are backed by strong technologic fundamentals.
5. Move Your Crypto to Your Personal Wallet (optional)
The last step is optional, however it can greatly enhance the security of your funds. After you’ve purchased cryptocurrency on an exchange like Binance, most blockchain experts advise you to transfer it to your personal wallet.
While major crypto exchanges are considered very secure, they should be used only to buy and sell crypto, and not to store it for a long time. Because of that, it’s best to download a crypto wallet app to your computer or phone and use it to hold cryptocurrency.
Take note that different crypto wallets support different coins and tokens - check the official website of your cryptocurrency to see the list of recommended wallets which you can use to store your crypto.