• Discover the reasons for investing in crypto.
• Educate yourself about cryptocurrencies.
• Decide which cryptocurrencies to invest your money in.
• Choose a broker and purchase your cryptocurrencies.
Investing in Crypto
Has investing in crypto caught your interest? Are you fully aware of the risks involved in investing in cryptocurrencies? And do you really want to purchase your first cryptocurrencies? Then it’s useful to know how to start investing in crypto. We’ll explain it to you in four steps. With the following steps, you can determine if and in which cryptocurrencies you want to invest.
Prefer taking a step back? Read the blog about Investing in Crypto for Beginners. We’ve compiled all the ins and outs for you.
Step 1: Determine your goal for investing in crypto
Figure out for yourself why you want to invest in cryptocurrencies. Is it to earn a lot of money so you can pay off your debts? Then we hope to help you out of this dream because investing in cryptocurrencies carries high risks, especially if you really need the money. Once you know why you want to invest, also determine how much money you can and want to invest in crypto.
If you want to invest to learn more about it, try starting with a small investment. But never invest money you can’t afford to lose. Because in the worst case, everything can be gone tomorrow. It’s also not wise to borrow for your crypto investment. You’re not certain if your investment will become more valuable. You always have to repay the borrowed money, even if your crypto investment is not successful. You’ll end up with debt.
Step 2: Educate yourself about crypto
Educate yourself about investing in crypto. And not just a little! Although this article is a good start, it doesn’t provide much more than basic knowledge. Read about the history of cryptocurrencies, the differences between coins, learn about the risks of cryptocurrencies, and/or read personal stories. Try to also stay informed about crypto news to get a better sense of this topic. Check, for example, ‘Smart in Crypto’ from Wiser in Personal Finance.
Step 3: Determine which cryptocurrencies to invest your money in
Decide which cryptocurrencies you want to invest in. It’s helpful to gauge market sentiment regarding these coins. By reading news and keeping up with forums, you’ll get a good idea. The price trend of these coins is also important: based on price history, many people try to estimate if the value will rise or fall.
Step 4: Let’s get practical
By now, you should know exactly how much money you can afford to invest in crypto. Additionally, you have educated yourself about (the risks of) cryptocurrencies and have decided which cryptocurrencies you want to invest in. Are you still enthusiastic about investing in cryptocurrencies? Then let’s move on to the practical side!
Buying crypto through brokers You purchase cryptocurrencies through a ‘broker’ or ‘exchange’ and store them in a digital ‘wallet.’ A ‘broker’ is simply the place where crypto is bought or sold. There are many different brokers. It’s helpful to conduct thorough research in this regard. Consider the following questions: What are the costs associated with this broker? How user-friendly is this broker? Is there a helpdesk available to assist you? To get a good understanding, it’s useful to read reviews. Once you have chosen a broker, create an account and deposit money into it. You can use that to buy crypto.
Crypto wallet
You store crypto in your digital ‘wallet.’ This is a digital wallet secured with a strong password. Often, you can also open a wallet directly through the broker. If that’s not possible, there are platforms where you can specifically open a wallet. Make sure to keep your wallet password safe. Otherwise, you won’t be able to access your cryptocurrencies.
You can start experimenting with Crypto today on Bybit 👇
