The world of cryptocurrencies can seem exciting and intriguing, but it can also be intimidating. Crypto is not as simple as some people imagine and there are certain steps you have to take to trade them safely. You should also know the basics of cryptocurrency before you get started.
There are tons of different cryptocurrencies on the market, and while they might seem similar on the surface, they often have very significant differences. This is why you need to delve deeper than just Bitcoin and truly understand the technology behind them. Let’s take a look at how you can get started with crypto investing.
Learn the Basics
You first need to have a basic understanding of crypto and the blockchain. The blockchain is a digital ledger system that records activity and broadcasts it to a large network of computers. The record is immutable and the computers on the network are there to verify those transactions.
Some cryptocurrencies use their blockchain for transactions principally, like Bitcoin, for instance. Others like Ethereum use it to run smart contracts and decentralized applications.
This is one of the most important distinctions you’ll need to understand about crypto. Some are meant to mimic traditional currencies, like Litecoin and Bitcoin. Out of these, you have privacy coins like Monero or ZCash that aim to make transactions as untraceable as possible. Then you have platforms like EOS and Ethereum, or other products like XRP that are used as a medium for making international money transfers easier.
This is why it’s important that you read about any crypto you’re going to invest in, and also try to gauge what gap they’re trying to fill on the market. You also want to see how much enthusiasm there is in the community for the coin, and what the community thinks of the team behind it.
Find an Exchange and a Wallet
Once you’ve found one or a few cryptocurrencies you want to invest in, it’s time to find a wallet and an exchange. You can decide to go for an exchange and get a wallet separately, or find an exchange that allows you to do both. Shakepay is a good example. If you want to learn more about it, you can read this Shakepay Exchange Review – CryptoVantage.
However, exchanges like these should only be a temporary solution. Thankfully, Shakepay makes it easy for people to transfer their funds to their wallet. That’s what you ultimately want to do; get a good hardware wallet and keep it in a safe place. Cloud or device wallets are also options, but they are not the safest. Heck, you even have people whose wallet consists of a piece of paper with their keys on it. Not the safest, again, but it still works.
Get Ready for the Ride
Now that you’re in, you have to get savvy and get ready for all that comes with crypto investing. There’s a lot of ups and downs, and a lot of it is pure speculation. However, we can say that the future is bright for crypto and that it would be a wise option for any investor to hold a few coins.
Keep some of the big ones, and keep your eye on some pet projects that you like. Learn how to read white papers, and join the community. However, don’t become religious. Only invest based on facts, not beliefs, or random opinions. You should also take the time to learn the basics of investing first so you can look at market movements with an informed eye.
This is all you need to get started with crypto. The most important thing is to truly do your homework and dive into the technology before you start. Doing that will give you an edge when you decide to actually start investing.