Cryptocurrency Investing Overview – How To Get Started For Beginners
Learning how to purchase Bitcoin or how to invest in cryptocurrency can be overwhelming, so we put together this high-level overview of the process to help you orient yourself. Take a look for a sense of what to expect as you get started! If you’re not familiar with cryptocurrency or blockchain technology, you might want to check out our tutorial titled “What is Bitcoin?” and “What is blockchain?”.
Cryptocurrency Investing Process
- Do your own research. Take a look at some different coins and see which ones interest you and has potential. If you’re just starting out, it’s a good idea to stick with the “Big 3” – Bitcoin, Ethereum, and Litecoin. These are also some of the most accessible cryptocurrencies since you can get them at most major exchanges such as Coinbase.
- Take security seriously. Make sure that you are using a virus-free computer and install strong, reliable antivirus and anti-malware protection.
- Once you decide on a coin or two, find an exchange that operates in your country, offers the coin you want and supports your preferred method of payment.
- Sign up for the exchange and go through the verification process. Then, set up Two Factor Authentication (2FA) and other security features that the exchange offers.
- Now you’re ready to make your first purchase! Start out with buying a small amount of your chosen crypto coin before you make a significant investment, just so you can get a feel for the overall process.
- Find a wallet that suits your needs. There are many different types — multi-coin wallets, wallets for iPhone and wallets for Android — and they each support a different combination of coins. Unfortunately, there is no universal wallet that can store every single coin, so you’ll have to make sure the one you pick takes the coin you’ve bought. Be sure to look into all the different types of wallets out there: mobile, desktop, hardware, paper, etc. They all vary in their features offered – pick one that suits your personal needs.
- After you buy coins and they’re sitting in the exchange, we recommend you send them to your new wallet. Exchanges might get hacked or decide to seize your funds (who knows why… but you never know). If the USD value of your coins is small, you may decide that you want to keep them on the exchange for convenience.
- Now, what to do with your new cryptocurrency? You can hold the coins as a long-term investment and track their prices with a crypto portfolio tracking app. Or you might decide to actively trade on the exchange. If you think that’s the route you’d like to follow, please read up on something called Technical Analysis.
- Buckle up because you’re in for quite the ride. Be sure to do a lot of research and get familiar with all the various topics and processes. There are no secrets and the more knowledge you gather, the better you’ll fare. That’s why we created this website – to give you the knowledge necessary to succeed in the world of cryptocurrency investing.
Cryptocurrency investing is incredibly fun and exciting so we wish you good luck on your journey and let us know if you have any questions!
This article was written to the best of our knowledge with the information available to us. We do not guarantee that every bit of information is completely accurate or up-to-date. Please use this information as a complement to your own research. Nothing we write in any of our articles is intended as investment advice nor as an endorsement to buy/sell/hold anything. Cryptocurrency investments are inherently risky so you should never invest more than you can afford to lose.