How To Successfully Invest In Cryptocurrency
We all are familiar with online payments, money transfers, social media sites, and other platforms. Almost all of us use an online platform like Paytm, google pay, etc., to purchase goods and services or transfer money. But, as we are talking about online payment platforms, how can we forget about cryptocurrency? Many people still do not know what cryptocurrency is; it is fine as it is an emerging form of digital cash. Today’s blog will give you in-depth information about cryptocurrency and how you can start investing in cryptocurrency. So as Crypto is a new subject for many of us, let’s first understand what it means.
What Is Cryptocurrency?
The cryptocurrency was introduced by Satoshi Nakamoto in 2009. It is a digital or virtual currency that is worked on blockchain technology. Cryptocurrency is a medium of exchange to buy goods and services and transfer money.
Let’s split the term cryptocurrency into two parts: crypto and currency. First, Crypto means cryptography is associated with converting ordinary plain text into unintelligible (text which can not be understood) text and vice-versa. It is a method of transmitting and storing data in a particular form that the only person it is meant for can process and read.
Let us understand it with an example; person A is sending some cash to person B; thus, the information can only be understood by the sender(person A) and the receiver (person B). Thus, any third person can’t understand the data, reducing the chances of hacking. After understanding what cryptocurrency is, let us have a look on what are the advantages of cryptocurrency.
Advantages of cryptocurrency
No intermediary required
assume that Ron and john are two friends Ron is living in USA and john is living in London, so what to send money to john? For this, first, Ron is required to send this amount to a particular bank, and then Ron can receive the amount from the bank; here, a third party (bank)is involved in this transaction. But this does not happen when the transaction is done in Crypto, as the money is sent directly to the receiver without any third party. This process also saves time.
No geographical barrier
as it is a platform that works with the help of the internet, it has no geographical restrictions as we can send money to any other person beyond the boundaries.
as there are no intermediates, we don’t have to pay high processing charges, or we have to pay very minimum fees. You can invest your money without paying a lot of fees in cryptocurrency, You just need to pay a less amount to invest in cryptocurrency.
Very fast process
sending and receiving takes a minimum of 4 seconds and 10 minutes. As we understand what Crypto is and its advantages let us move ahead to how we can invest in cryptocurrency.
Cryptocurrency Option That You May Invest
- (DOT) Polkadot
- (UNI) Uniswap
- (BNB) Binance
- (USDT) Tether
- (ETH) Ethereum
- (DOGE) Dogecoin
- (BTC) Bitcoin
- (USDC) USD Coin
How To Invest Successfully In Cryptocurrency
1. Choose the correct crypto exchange
first, and select the right platform before investing. Then, you can easily buy and sell Crypto from famous crypto exchanges such as Coin Switch Kuber, Unocoin, and CoinDCX.
2. Open your trading account
this account will be similar to your bank account. You can open an account on any of the chosen exchanges. Further, you have to register on the exchange and share KYC details which will require a copy of your address proof, pan card, and photo identity.
3. Transfer the amount to your account
after opening your account, you must fund the account by sending some amount from your bank account to a crypto trading account. For this, you have to link both accounts.
4. Purchasing and investing in crypto
after transferring the amount to your account, you now have to select the coins you wish to invest.
5. Store your cryptocurrency securely
as it does not have any formal institution backing crypto exchange, there are high chances of hacking. So it is safe to store your currency in the crypto wallet. Also, store the assets and codes of your account securely.
So we covered almost every aspect of our subject cryptocurrency. But before ending up, here are some more Pro tips for you that will help you a little more in investing in Crypto.
6. Some Other Pro Tips to Invest Successfully in Cryptocurrency
- research before investing
- acquire knowledge about types of currency
- try to understand the reason behind price fluctuations.
- understand the market trend
- analyze target market
- analyze competitors
- analyze technology
- and demand and supply
- observe your risk appetite (understand how much risk you can manage)
- in short, observe the market
All the above is a comprehensive guide for you to take your step ahead toward investing in cryptocurrency. But do not invest by just listening to others, or do not stop yourself from investing because someone suffered the loss. Crypto is based on market trends; as a result value of your investment keeps fluctuating. So you can not avoid losses, but you can definitely reduce them by properly analyzing and studying the market and trends. As we all know, higher risk, higher returns, and lower risks lower returns.