Investing in cryptocurrency is a question that sparks discussions from different people around the world. Some people say that investing in crypto is an excellent idea, while others think that cryptos are mere speculation because you have to sell at a higher price for you to profit. When dealing with cryptocurrency, you can grow your money by over 500% within a short time, or you could lose it all. However, the best thing is that cryptocurrency is the future and may one day replace money. Cryptocurrency also eliminates the need for intermediaries in transactions, and blockchain technology makes it secure to transact. As such, the advantages outweigh the disadvantages, and you can consider buying cryptocurrency. Here is a beginner’s guide to buying cryptocurrency online.
- Broker. Since this is your first time buying cryptocurrency, you have to ensure you get the right crypto platform. You must select a broker that sees and supports your investment goals. Some brokers only offer wallets, while others allow you to hold crypto in your wallet and trade it at any time. Do not rush yourself or look for fast solutions. Take your time and search the market for a broker that meets your investment plans.
- Registration and Verification. The registration process is almost similar across all providers. The provider you choose will require you to provide your details to be attached to your crypto wallet. The necessary personal information includes your name, email address, and password. You will then accept the terms and conditions to create an account. Once you have created an account, you must verify that the information you provided is correct. The verification process requires you to upload a utility bill with your residential address to verify your address. The address on your utility bill should match the one you provided during registration. You will also upload a clear picture of your government-issued ID card, driver’s license, or passport to the broker’s verification portal.
- Deposit. This process involves funding your account. Here is where you deposit funds to the crypto platform. You can deposit through bank transfer, debit/credit cards, e-wallets, and digital currencies.
- Buy Crypto. Log in to your crypto wallet and pick the crypto you wish to buy. You may find several types, including Bitcoin, Litecoin, Ripple, Ethereum, and others. Once you have selected your crypto, key in the amount you wish to invest, click buy and wait for the process to complete. You can buy as much as you want, depending on the money in your wallet.
- Secure your Crypto. Once you have your cryptocurrency, ensure that it is secure. Your browser may be prone to viruses or hacker’s tools that may log in to your platform and cause you to lose your crypto. Always use a Virtual Private Network (VPN) to secure your online transactions. VPNs ensure that no one can intercept your online activities since it encrypts your data.
- Don’t Invest All your Money in the Latest Coin. One reason why economists are against investing in cryptocurrency is its constant volatility. Although Bitcoin rose drastically after its inception, some people have lost money due to some cryptocurrency bubbles. Since governments do not back crypto, the price can fluctuate at any time. Avoid putting all your eggs in one basket.
- Avoid Promises of Good Return. Nobody can predict whether a cryptocurrency will rise or not. No one can guarantee you a significant Return on Invest (ROI). So, if someone promises you instant or great returns, avoid them and look for another avenue. You can find professionals in the market who can advise you on how to invest wisely in cryptocurrency. These professionals are honest and will tell you about the risks involved in this type of trade. These pros will not come to you. Instead, you look for their services. If someone comes to you or sends you an email welcoming you for an investment opportunity, hang up or do not reply to that email. Here are some of the best platforms to trade cryptocurrency.
- Protect your password. In this world, criminals follow success. Hackers are always waiting for you to earn money and find the perfect opportunity to access your account and steal your money. Security on virtual coins is vital. You can use two-factor verification and strong passwords. However, none of these matters if you give out your personal information. As such, always keep your passwords to yourself.
Now you are ready to start investing in cryptocurrency. However, remember that all investments take time to mature and cryptocurrency is no exception.
