As you’ve probably read already on my blog, my latest obsession is cryptocurrency. Many experts are predicting that cryptocurrencies will increase in value dramatically over the next few years, making now a fantastic time to invest in the space. That said, many would-be investors do not know how to get started with cryptocurrencies. If that describes you, follow my steps below to become a crypto investor.
Step 1: Research Before Buying
Like any investment, it is important to do your due diligence before investing in cryptocurrency. Here are some resources provided by CoinReviews.io that I found valuable. Udemy’s “Cryptocurrency Investment Course 2017: Fund your Retirement!” course makes for an excellent introduction to the space, detailing how to join the top exchanges and choose the right coins for gains over the short- and long-term. CoinAcademy offers courses similar to those at Udemy free of charge. A broad range of topics are covered by the site’s four free courses, but the experience is less in-depth than the paid version. I recommend this more as a supplement than as an alternative to Udemy if you plan to seriously invest in cryptocurrency.
Independent research outside what Udemy offers is generally a good idea as well. CoinTelegraph offers articles with helpful visual aids that help newcomers easily comprehend the basics of cryptocurrency. CoinDesk is another valuable resource because it focuses on facts instead of potentially flawed opinion. It offers an up-to-date tracker for the prices of the most popular cryptocurrencies and a “Blockchain 101” section detailing everything a novice needs to get started. Finally, STEEMIT is a social media platform with a robust cryptocurrency community. It is a great place to find breaking news as it happens to inform your investment strategy.
Once you grasp the basics of cryptocurrencies, it is time to focus on what coins you want to invest in. Newcomers should stick to proven coins such as Bitcoin, Ethereum, and Litecoin for their initial investments, as these tend to be more predictable than less established choices. Follow price trends on a site such as CoinMarketCap.com to discover which coins are trending in the right direction.
Step 2: Setting Up Your Wallet
When you’re ready to buy cryptocurrency, I recommend using CoinBase.com to facilitate the transaction. The site is very intuitive, allowing you to link a bank account or debit card to fund your investments. The site handles only the three established coins above and caps how much you can buy per week, making it very beginner-friendly.
You can circumvent the weekly cap by providing identification, but remember to invest only what you can afford to lose. Crypto is an emerging field with a bright future, but your money is still at risk.
Step 3: Buying and Selling
As you gain experience, you may want to join an exchange with more options than CoinBase offers. Kraken is popular among cryptocurrency insiders, and Bittrex offers over 200 coins to choose from. BuyBitCoinWorldwide.com details how to buy cryptocurrency across the globe if you’re outside the U.S.
As you branch out, it is important to focus on long-term data. These markets can get wild in the short run, so do not overreact to a crazy day. If an investment goes south, learn something from it and move on. You should also remember that cryptocurrency is not a get-rich-quick scheme. Set a realistic ROI and stick with it.
I have become an enthusiastic cryptocurrency investor using the tips above. If it worked for Agam Berry, it can work for you too!