Although cryptocurrencies have become a part of everyday life, they still remain something difficult to understand for many. And swap BTC to USDT even sounds scary. But news regularly appears in the information space about another sharp change in the price of Bitcoin, someone’s achievements in trading Ethereum, or mentions from Elon Musk’s tweets about Dogecoin. In general, there are quite enough prerequisites to set the goal of becoming one of the crypto investors.
How to buy cryptocurrency
Prices for digital assets change quickly, often very dramatically and not very predictably. Investing in crypto is a risky endeavor, but if done wisely, it can be very profitable. While the market is in a bearish trend, many analysts advise viewing this period as a buying opportunity.
Where to buy coins
First of all, you need to choose a reliable trading platform. This could be a centralized crypto exchange, a crypto exchange, or P2P services. However, the last option can be difficult for a beginner. Be sure to find out as much as possible about the reputation of the site where you plan to buy your first coins. Some countries have crypto ATMs where you can exchange fiat money for digital money and vice versa.
Register an account
The safest and easiest way to buy cryptocurrency at the start is a cryptocurrency exchange. A reputable platform has fewer risks, including those associated with fraud. You will need to go through the standard registration procedure, and on many platforms, also a KYC verification procedure in which you will be asked for at least a photo of your ID.
Creating a crypto wallet
Storing cryptocurrency somewhere under the mattress will not work. For digital money you need a digital wallet. If you nevertheless choose to purchase coins on the exchange, then for some time they can be stored there, on the exchange wallet. If you do not plan to actively trade or use available passive income opportunities, it is better to move your coins to offline storage. This is a reasonable precaution, as hackers are very fond of such large targets and sometimes succeed in hacking attempts. In addition, the exchange itself can block access if your activity seems suspicious to the system.
Having your own wallet, you can easily manage your digital capital. By the way, this step should be the first if you decide to buy crypto at a crypto machine or use the services of an exchanger.
Crypto wallets come in hot and cold varieties. Cold wallets are nearly invulnerable digital safes because they store your coins offline. They can be paper (sounds strange, but they really can) or hardware. Keys for a paper wallet are generated using special services. The generated key must be printed and stored in a safe place and not lost. Now this method is gradually falling out of use, as much more convenient and reliable storage methods have appeared. For example, hardware wallets, for which losing a key is not a disaster.
Hot wallets are downloaded to your desktop device or phone. To begin with, it is better to choose a multi-currency wallet, such as TrustWallet or MetaMask. With a hot wallet, you don’t have to do too many extra steps to, for example, exchange USDT to WAX on LetsExchange or another platform.
Choosing a coin
Of course, the main cryptocurrencies are BTC and ETH, which are now relatively inexpensive. Moreover, it is not at all necessary to immediately buy a whole coin. But the choice is not limited to them, that is, you will have to learn to analyze the market, look for coins that you think are promising and invest small amounts in them.
The main cryptocurrencies on the market are those that can now be bought at a relatively low price for them. However, you do not have to purchase the entire cryptocurrency, you can only buy a portion of it.
Develop a strategy
At first it is better to limit yourself to the simplest one, “buy and hold”. The simplicity of day trading, which is sometimes marketed as suitable for beginners, is downright deceptive. Ideally, it is better to find a platform with a demo account and experiment with it first, gaining experience before you start trading real assets.
Remember, cryptocurrencies are highly volatile. There is no need to be afraid of this, you need to prepare for it and learn to use it to your advantage. Be careful and invest in amounts that won’t hurt your budget too much if things go wrong. Stick to your strategy and be sure to diversify your risks.
