Prabhjot Singh
A decentralised digital currency, which was created as a reward to the process called mining, has achieved an unexpected great fate. Crypto has become a new money making cool among people and individuals are educating themselves over the same. But the crypto market has not been full of highs only. The graph obtained a new high from Elon Musk’s tweets, hit the new bottom over the rising sustainability concerns; crypto market has seen a lot of fluctuations.
The relatively new and unstable crypto market has earned a lot of investors riches. It’s the unprecedented growth that is attracting a lot of investors.
Undoubtedly the crypto market is full of risks, but investing is not all about gamble and geusses. It requires the background knowledge of coins, the basic knowledge on the functioning of the market. In short it requires you to do a substantial amount of research and homework.
In that case this write up is all about helping you with your homework assignment. You need to be well versed with the basic steps before asking for consultation even.
What exactly is cryptocurrency?
Dating back to 2009
Bitcoin was the first and currently is a highly valued cryptocurrency, which Satoshi Nakamoto first outlined in a paper entitled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ in 2008.
In 2009 Bitcoin, based on blockchain technology, was launched in the market, and it opened gates for many investors. Bitcoin valued $00.00 in 2009 in contrast to $ 43,671 in 2022.
How do you define cryptocurrency?
Cryptocurrency is digital money that uses digital files as money. Cryptocurrency is different from other forms of digital money in a way that it is decentralised, unlike bank authorised digital money, which the government centralises.
Why invest in crypto?
The future of digital money
There is a lot of buzz around crypto currency, it can be analysed from the fact that people are showing a great interest in the same . Moreover, the soaring market and remarkable profits are attracting more people to the game. For instance, Bitcoin has observed a remarkable growth rate of 4,667.60% in the last five years. Amidst the rumours of cryptocurrency getting banned in some nations, the crypto market conversely is experiencing rocketing figures.
Despite the heavy regulations and restrictions, successful crypto campaigns and business models are being organised. It is difficult to disrupt the well-reputed crypto ecosystem already established and has become an integral part of the economy. Therefore, imposing a ban is practically extremely difficult.
A money-making gamble
In contrast to conventional forms of currency, cryptos do not require a lot of complex paperwork; this makes cryptocurrency highly desirable among people.
All-day and every hour
Unlike the traditional stock market or banks that take breaks on weekends and holidays, the crypto exchange does not break even then. Cryptocurrency operates 24✕7✕365; therefore, there is no fear of the market remaining closed or open.
Sole ownership
Unlike the equity market, mutual funds or stock markets where a third party manages your investments, here, in the case of cryptos, you are the sole owner of your digital asset.
User autonomy is the most significant benefit of cyber currency, as this provides you ample opportunities to invest and build your mass investment on your principal capital.
Phenomenal profit potential
Stock market incurred minimal profits during covid 19; the crude oil prices crashed below zero; when the gold investment returned 16%, the bitcoin yielded a gain of 26%.
Like bitcoin, other cryptocurrencies in your portfolio would also have protected your investment in such unprecedented times. If you are planning to put money into crypto coins, then there are several steps that you need to follow.
How to Start Investing in Cryptocurrency?
Step 1: Do your research first
Before making an investment decision, you should be familiar with the subject you know nothing about, not that you have to master everything. After all, one becomes an expert with experience, but you should be accustomed to the jargon.
Step 2: Choose a crypto trading service or venue
Popular trading services and venues for cryptocurrency investment include cryptocurrency exchanges, brokerages and payment services. The most convenient option of these three is cryptocurrency exchanges, as they offer a wide range of features and more crypto options for trading. There are many options concerning the platforms of exchange.
You can buy, sell or hold a cryptocurrency by signing up for a cryptocurrency exchange. The best feature of this practice is that it allows users to trade crypto, withdraw or invest at their convenience. Don’t worry! All the transactions are secured because they are made to personal online wallets.
Step 3: Connect your exchange to the payment platform
After choosing the exchange platform, you will have to submit some personal information as per the exchange’s requirements. After verification, the application will ask you to select a payment method. The specific payment mode can be directly linked to your bank account, debit card, PayPal account or credit card. Experts don’t advise choosing a credit card for purchasing crypto coins because the volatility in the market can result in price inflation.
Step 4: Choose Cryptocurrency
You must have heard of just a few names from cryptos like Etherium, Bitcoin, Dogecoin, Shiba, etc. Interestingly, there are over 5300 digital coins available on the platforms. Most cryptos are related to some technology; checking their background and progress is crucial as the properties should match your long term or short term plans.
Step 5: Secure your Crypto wallet
If you have a hot wallet or use crypto for purchasing, safeguarding your cryptocurrency becomes essential. Most people prefer using a VPN (Virtual Private Network) to ensure encrypted and secure online transactions.
Data encryption is an additional layer of protection that ensures that data and crypto purchases are anonymous; in other words, no one has access to any of the users’ online transactions. It makes hacking of users’ accounts difficult.
Tips to consider before investing in blockchain technology
There are some points that one needs to keep in mind before starting their investment journey.
Don't invest too much money.
You need not spend all your savings to get more significant returns; you need to be cautious while making investments. A fraction of your savings invested in cryptos makes a lot of sense for beginners.
Have a diverse portfolio
If you are an amateur, then consult an experienced investor before investing. You need not invest all your funds in single crypto, instead, check for profiles of different coins and plan your investment accordingly. You can keep a percentage of your net planned amount for a specific coin.
A new start
You will get a better insight of the crypto delicacies with time. The crypto profits can be your reliable source of income, if invested with might. Take one step at a time and unravel your crypto journey!
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