In this post, I am going to show you How to start investment in cryptocurrency, so without any further delay let’s start.
This article guides you into the world of crypto investment. In this article, we have taken a beginner’s approach to guide you on how you can invest in Crypto.
Believe it or not – admit it or not, Cryptocurrency is the future.
If the same thing had been said a few years back, I am sure most people would not believe my words. A few years ago, people did not know Crypto as much as they know it today. There was very less awareness about cryptocurrency. But in recent years, Crypto has erupted in the market. The attractive returns of Crypto have attracted investors and traders very much. And that’s pretty normal.
Many ace market experts have said that Crypto has some great features ahead. This saying may be the technology involved in the whole cryptocurrency system. That’s the reason investors are showing interest to start investment in cryptocurrency.
Let’s keep those things apart and begin our beginner journey on Cryptocurrency Investments.
In this article, I will guide you on how to start investment in cryptocurrency, and by the end of the article, I am sure you will gain some important knowledge about Crypto. So let’s start our journey.
Before starting investment in cryptocurrency, we should know first what Crypto is.
What is Cryptocurrency?
You might have assumed that this is some currency from the word cryptocurrency. If you have assumed that, you are not at all wrong. Cryptocurrency is also a type of currency, but it is not the same currency we generally talk about or use in our daily lives. The full form of Crypto is cryptocurrency.
Crypto is an electronic currency – a whole new currency that is transacted over the internet. There is no physical existence of Crypto. Everything is done on the internet.
A great fact about crypto transactions is that the buyers and the seller remain anonymous while transacting any form of Crypto. The whole transaction is performed using your crypto id. This means that if you are receiving money from someone by using Crypto, you will never come to know about the donor, while the donor will never come to know about your identity.
After having a basic idea about Crypto, we are now going to know –
Why Should You Invest in Cryptocurrency?
- Attractive Returns
- Future tech
- Unlimited supply
- 24-hour trading
Let’s dive into detail.
Attractive Returns in Investment in Cryptocurrency
Attractive returns in Crypto play the main role in why investors are beginning to love Crypto. The most popular Crypto, Bitcoin, has given a jaw-dropping amount of returns that no asset has probably shown from the beginning of history.
Crypto involves a technology that is undoubtedly ahead of this generation. The next-gen technology has awesome technological features behind it and has powerful security involved in the transactions.
Our traditional currencies have a limited amount of supply. The supply of the currencies mostly depends on the decisions of governments and banks. But, on the opposite side, Crypto has an unlimited amount of supply. Every cryptocurrency has millions – billions of units of it. And there are hundreds – of thousands of known and unknown Crypto on the web.
Another reason people invest in Crypto is that they can independently do their trading or invest in that very Crypto. As of now, Crypto is a non-regulated asset. Other investment assets like the stock market are highly regulated by the government / the concerned authority body, but there is nobody to make any regulation of Crypto.
The stock market remains open during a specific time span of the day. Unlike the stock market, the crypto market is not country-dependent, so the crypto market and the crypto exchange remain open 24 hours a day, 7 days a week.
Regardless of the country, you are living in now, you can trade in Crypto at any time.
Every time you open the exchange website, you can see the price fluctuating tirelessly.
For these and several other reasons, Crypto is becoming a favorite investing option of some investors.
Things You Should Consider Before Start Investment in Cryptocurrency:
Before making any investment, we should always look for the opportunities in that very asset and some risk factors involved in it Now we are going to see some important points to scan before you make any investment.
- Define your goals for investing
- Don’t Rely on the past return
- Manage risk
- Invest what you can afford
- Don’t invest in coins that are not popular
Let’s dive into the detail.
Define Your Goals for Investing in Cryptocurrency
We must set a goal before starting our investment in Crypto and an asset. You must have a clear conception of your goals for the tie.
There are many ways to earn money from Crypto – people have become more healthy after starting an investment in Crypto. So the chances are there of making money from Crypto.
Depending on your goal, you have to invest your money & time to generate your expected return.
If you have a bigger goal, you will have to invest more money than normal. The same thing applies to time. If you want to make huge profits in a short span of time, you will also need to invest large capital.
Don’t Rely on The Past Return
This thing is very common in the field of investing. Investors should not care much about the past performance of any asset. They should look at the future opportunities that the asset can return.
We say that past returns can’t tell you about future returns. Some years ago, people thought that the value of bitcoin would not rise anymore; instead, it decreased with time. But, we are the witness to what happed to the value of just 1 bitcoin.
The godfather of the world of investment, Mr. Warren Buffet, suggests that you should follow 2 rules while investing. The first one is – ‘Never lose money’ & the second one is just to follow the 1st rule.
In investing, risk management is far more important than generating attractive returns in a short time. Every investor should take the ultimate care to protect their own capital, and then they should make plans on how they can make money.
It’s totally on you how you can manage your risks. Without practical experience, it is very hard to learn risk management. You will have to experience that matter practically.
That does not mean that you have to lose money at first to learn how you can manage risk. You can make a dummy analysis and can track the market to check if your analysis is correct or not. You can also do paper trading.
Invest in Cryptocurrency What You Can Afford
We, the investors, invest what we income from our salary or business. Our goal should be to increase our wealth. But to achieve that goal, we don’t need to invest a large part of what we are earning. We should focus on our daily needs and necessary expense too. After making a good plan for all of these, you should only look forward to investing in Crypto.
Don’t Invest in Coins That Are Not Popular
Every investor checks how good a product/company is before investing in it. Popular companies have good business strategies, so there is very little chance for them to go bankrupt.
In Crypto, we have lots of coins. You can often see the value of some new coins going high very quickly. But after we invest in it, the value again goes down, and we lose our money. So it is good to invest in popular coins.
Thank you for reading the post where we discussed how to start investing in Cryptocurrency. This is an absolute beginner’s guide from which you can understand some basic concepts about Crypto, like :
What is Crypto?
What are the benefits of using Crypto?
Always remember that the crypto market is very volatile – it is 5-10x times more volatile than the stock market. Only a wrong decision can result in a huge loss. So make a strong analysis before starting an investment in cryptocurrency.