A Comprehensive 6-Step Guide for Beginners Planning to Invest in Cryptocurrencies!

July 12, 2021

The world is going with the flow of cryptocurrencies in today’s time. A lot of things are happening in the crypto world that looks appealing to potential investors. Of course, along with surging prices, there are controversies too in the market. But still, the investors, banks, and new investors are taking the best advantage of cryptocurrencies that it provides. Still, if you are new, confused, and have multiple questions in your mind, you need to learn first about how you should invest in cryptocurrency and what benefits will it provide?

There might be many questions coming to your mind like is it worth investing in cryptocurrencies? Can you earn money by investing in bitcoin? Is the process too complicated? How to get started with investing in bitcoin? Which cryptocurrency is best to invest in? Should cryptocurrency investment be short-term or long-term? These are the questions that are crowding your mind; let us understand a few things or a checklist that is important to learn before investing in any cryptocurrency. If you plan to trade cryptocurrency like bitcoin, download Crypto Genius app that allows simple and secure trading.

Highly volatile market

If we talk about volatility, both the share and crypto markets are extremely volatile. Well, to understand the volatility of bitcoin and other cryptocurrencies, you must check their price history. Even in 2021, bitcoin started the year with a boom, and along with it, there was a good increase in the prices of other cryptocurrencies. However, China’s banking association gave orders to ban cryptocurrency trading last month, which was quite shocking. Because independence is a great feature of cryptocurrencies, it also has multiple risks involved. Before you run behind investing in cryptocurrencies, make sure to learn about the risks related to it.

Invest in multiple cryptocurrencies

Crypto experts and financial investors always request and advise new and inexperienced investors to diversify their investments across multiple assets. Investing in different cryptocurrencies will protect you from losses, and along with it, it will build a healthy portfolio. Moreover, if you plan to start with a small amount, you must consider investing your cryptocurrencies in popular cryptocurrencies like Bitcoin or Ethereum. These cryptocurrencies have high market capitalization and offer the best features and security. Bitcoin is a great investment option if you have knowledge of the market and know technical analysis, as it is a must to predict the future of cryptocurrency.

Choose a reputable and reliable crypto exchange.

To invest your money in any cryptocurrency, you need first to find the right platform for crypto trading. Crypto exchanges are the marketplaces that facilitate crypto investments. You can buy and sell cryptocurrencies from the crypto exchange. If you want to invest in bitcoin or altcoins, choose the crypto exchange that deals in multiple crypto assets, is reliable, offers strong security measures, and has strong levels of liquidity. While buying cryptocurrencies from crypto exchanges, keep in mind to never store your money in exchanges as these marketplaces aren’t safe to store crypto coins.

Understand market capitalization

As mentioned earlier, Bitcoin and Ethereum are the two most popular cryptocurrencies with the highest market capitalization. While several other cryptocurrencies are growing rapidly but are still not comparable to bitcoin, you must analyze the market and price while investing in any cryptocurrency. Make sure to check and understand the market capitalization of specific crypto coins.

Right investment strategies

If you are a young and new investor who hasn’t invested before in cryptocurrencies, you must know that it is essential to adopt the right investment strategies and follow them in the crypto market. Most crypto experts recommend investors follow a dollar-cost averaging strategy that traders use in the crypto market. In this strategy, the investor should buy a fixed amount of crypto coins every week or quarter, or year to minimize the disclosure of crypto coins to volatility. Investors must do an extensive reading as it will provide complete guidance about the crypto world that they are required to know while investing.

Scams or fraudulent activities

Most people are unaware of the scams or fraudulent activities that happen in the crypto world. Because of the development of digital currencies, there’s a rise seen in cybercrimes. Cybercriminals are always in wait of users that use less security to attack their coins. Therefore, you must make it clear in your mind that bitcoin and other cryptocurrencies are not always rewarding.


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