Are you looking for vital ways on how to invest in cryptocurrency? Then look no further, because, in this article, we will be taking a deep looking on how to invest in cryptocurrency.
Last year (2017) was a big year for bitcoin and other cryptocurrencies. Bitcoin, in particular, had an exponential growth by 1400%, thus making early investors – back then – become billionaires overnight.
Although, the value of bitcoin has plateaued in recent times, it is still an excellent investment to make.
It is essential also to know that even though it hasn’t reached the height or value, it once was; Bitcoin is still the ‘buzzword’ in the mouth of investors all over the world.
Nonetheless, if you are a newbie in the crypto-space when it comes to investing in cryptocurrencies, it is essential to do more research before investing your hard-earned money.
Our vital tips will also help you minimize loses when you trade in cryptocurrencies.
Essential ways to invest in cryptocurrency
- Properly store your cryptocurrency in the right place first
It is necessary to learn how to walk before you run. To start investing in cryptocurrency, you need to know where to buy and store your digital assets first, just as with other financial investments.
Guess you don’t want to lose your hard-earned money. Then guarantee that your digital asset is comprehensively safe against hacks and cyber-threats.
There are crypto wallets that built for security. Ledger Nano S is a secure wallet to invest your bitcoins. You can also use the TREZOR wallet to safeguard your bitcoins.
- Cryptocurrency trading through trusted exchanges
After you getting a secured wallet to safeguard your cryptocurrency, you will need to trade with them through exchange-based trading. You can get returns from rising prices by buying and from falling prices by selling.
Trading through crypto exchanges involves the transfer of cryptos from one trader to another through crypto-wallets from both parties.
When trading with a crypto-exchange, it is necessary to have in-depth knowledge of some technical analysis to the right time to buy and sell to make profits. It is very vital to choose the right crypto-exchanges.
There have been reported cases of hacks on popular crypto-exchanges. Hence, before choosing one, ensure the crypto-exchange has a high level of security in it.
- Contracts-for-Difference trading
Contracts-for-Difference (CFD) trading involves trading on online platforms through forex brokers as CFD instruments.
It is essential to know that investors can be able to get returns by trading when the price rise and falls.
Additionally, when using CFD trading for the first time, there are no definite digital assets involved, unlike exchange-based cryptocurrency trading.
- Entry-level investing
The entry-level investing is another great way to invest in cryptocurrency, and it is safe.
This form involves searching for new digital assets that offer Initial Coin Offering investment cycles. It also follows the format of IPOs.
- Keep tabs on market cap
Even after using the above methods, it is still necessary to always monitor the market’s capitalization.
If you are thinking of investing in cryptocurrency, do not focus on the current value of the coin; instead, watch out for the percentage of the total market cap you are buying.
Investing in cryptocurrency is a good move as it offers a reasonable return rate, has excellent growth potential, and a low entry barrier.
However, before trying to invest in cryptocurrency, you must take a look at this guide, so as not to make the right move and not make mistakes.