Many people are interested in investing in digital currencies, but getting started can sometimes seem quite overwhelming. Just where do you begin? It can seem quite complicated, especially when you’re a beginner, but thankfully, the steps involved are relatively easy.
#1: Learn as much as you can about cryptocurrencies
Which cryptocurrency should you invest in? There are different types of cryptocurrency, so it’s worth doing your homework. Bitcoin tends to be the currency that most people have heard about, but there is also Ethereum, Ripple, Litecoin, and many others to consider as well. Get to know a little more about them by reading books and website articles, listening to podcasts, and joining crypto forums online. Find out what cryptocurrencies are and the processes involved when buying and selling, and learn useful tactics to help you crack the market.
#2: Set up a digital wallet
Digital wallets range from software programs to small hardware devices. Their function is the same as the wallet you would use for your physical notes and coins, as they are used to securely store details of your digital currency. When you have set up your digital wallet (sometimes known as an e-Wallet), you will be ready to make electronic transactions with other parties trading in cryptocurrency. According to Investopedia, these are the best Bitcoin wallets of 2021 but Google the wallets that are in line with your preferred choice of currency.
#3: Get your personal ID together
When setting up an account with a crypto exchange, you will need ID to verify that you’re the account holder. This would usually be your passport or drivers license for image verification purposes, so be sure to have these ready before taking the next step.
#4: Choose a cryptocurrency exchange
An exchange is where you will be selling and buying cryptocurrencies, so read reviews online and pick the one that you think is right for you. Check the previous link for one example. Some exchanges charge a trading fee, and they might also charge you for deposits and withdrawals, so check prices during your research stage. To diversify your crypto portfolio, you might also want to choose an exchange that offers you the widest choice of cryptos available. When you have picked an exchange, use their demo facilities to get the hang of trading. This is a no-risk way to gain experience so practice as much as you can before you trade for real.
#5: Decide how much you’re willing to invest
When you’re new to investing, it is always wise to start small before spending big, so curb your enthusiasm at the beginning. Budget your finances and use a portion of your available money for your investment. You can select how much you want to spend after signing into your exchange. After choosing your payment method, you then choose which currency you want to buy. Your order is processed within minutes so you won’t have long to wait. Assuming you have gained knowledge and experience beforehand, you will be ready to start your investment journey.
For more advice, check out our other articles on the subject of cryptocurrency, and continue your research online. We wish you every success!