It’s no secret that cryptocurrency is one of the hottest topics in today’s world. From new regulations to all-time highs, it seems like there’s news all the time about something new happening in the crypto world.
With all the excitement and technological advancements, crypto is one of the best investment opportunities. That’s why the global blockchain market is expected to reach $23.3 billion by 2023.
There is a lot to learn if you want to invest in crypto. Keep reading to learn how to make your first buy.
Choose a Cryptocurrency to Buy
Just like the stock market, you don’t only have one cryptocurrency to choose from. Each one has its own pros and cons. However, unlike regular investments, each crypto offers something unique.
If you’re just getting started, it pays to stick with the biggest cryptocurrencies in the market. If you go this route when you purchase crypto, you’ll likely buy Bitcoin or Ethereum.
However, there are many other altcoins to choose from. The problem is that they aren’t all as established and may not last. These investments will be risker than investing in the top two.
Pick an Investment Strategy
Once you figure out which cryptocurrency you’re going to buy, you’ll need an investment strategy. There are a few ways you can go about this.
The first is to put in a large amount of money at once. You’re banking on your cryptocurrency coins going up over time. The cryptocurrency market is highly volatile at times, so this will be very risky.
Most investors take a dollar-cost average approach. Instead of dropping a ton of money in the crypto markets at once, people buy a small amount of cryptocurrency regularly. Doing this reduces the risk and makes your investment less likely to go away during a big crash.
Pick a Crypto Exchange
Once you pick an investment strategy, you’ll need to find a place to buy cryptocurrency online. For most people, that place is an online cryptocurrency exchange.
Online crypto exchanges are a place for you to send money and trade the crypto markets. Once you link up your bank account and deposit money, you have 24/7 access to all the cryptocurrency coins on that exchange.
These exchanges will show you charts about what the price of the coins is during a specific time. If you’re looking for a certain price to buy, you can use those charts to time your buy.
Create a Crypto Wallet
One of the great things about cryptocurrency is that you own your currency instead of a bank. However, that isn’t always true when your crypto coins are on an exchange. You don’t own your cryptocurrency wallet there, so your coins are at risk if there’s a problem with the exchange.
You have complete ownership over your coins by setting up a crypto wallet and transferring your purchased coins there. As long as you remember the seed phrase to your account, nothing can happen to your cryptocurrency coins unless you forget how to access your wallet.
Now You Know How to Invest in Crypto
Investing in crypto isn’t like buying other investments. You’ll need to do some research to learn the ins and outs of the process. However, now that you know more about how to invest in crypto, you’re set up to make your first buy.
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