Cryptocurrencies are now being used by around 300 million people worldwide. The statistics of the cryptocurrency market show that over 106 million (globally) people have signed up to trade cryptocurrency on exchanges, according to market statistics. Crypto trading platforms have even predicted that by the end of 2030, there will be more than 1 billion crypto investors worldwide, as the number of investors will reach the 1 billion mark. The right reasons are driving crypto investment growth. A significant reason for such admirable figures and facts can be attributed to crypto’s high volatility, one of the traits that can reward investors with incredible returns – much higher than stock market returns in the traditional sense. Although it might seem odd to those new to the crypto scene to invest in cryptocurrency outright, it might confuse those uninitiated with the scene.
How to invest in cryptocurrencies easily.
Cryptocurrency market study
The primary tip that can help you get ready to invest in cryptocurrency is to acquire extensive knowledge of the crypto-scape. I think it applies to any asset market, but especially to a niche market like crypto, which is a novel market.
You should look at how the market functions and gather a basic understanding of how it works, the underlying blockchain technology, the features and characteristics of the technology, potential ROI, future goals, developments, and so on. This research aims to not only familiarize you with technical crypto jargon but also to provide you with an estimation of where you might stand if you decide to invest in cryptocurrencies.
Cryptocurrency selection
There are over 18,000 cryptocurrencies in the market, and new ones are added almost every 6 months. However, not all cryptos out there could promise strong returns. Choosing wisely when investing in the cryptocurrency market with your hard-earned money would be best.
Make sure that you focus on those supported by solid fundamentals and with strong prospects for the future. You should invest in cryptocurrency assets that have the potential to make a difference and grow over time.
Get a crypto exchange account.
The most popular way to invest in cryptocurrency today is to open an account with a crypto exchange, although there are other ways. These online platforms facilitate the buying, selling, and trading of cryptocurrency for those interested in becoming crypto investors and traders. The following are the top factors to consider before signing up with a crypto exchange to invest in cryptocurrencies:
- Your country is not limited by geography.
- Provides a wide selection of cryptos, including those you select
- Other than credit cards, various payment methods are available
- Authentication involves multi-factor authentication, fund insurance, a cold wallet for storing funds, etc.
- Affordable fees and there are no hidden costs
Choose a crypto broker and sign up
When you feel the interface of a crypto exchange is getting a bit too complicated for you to manage. You might want to consider investing in cryptocurrency through a crypto broker. Traders and investors prefer brokers for their easy-to-use interfaces that make things easier for the. Especially for those of them who are beginners in the market.
One thing I would recommend as you plan to invest in cryptocurrency through a broker is to look for paid brokers rather than free ones. Most free ones are usually unsafe since they make a lot of money from the data that investors give them. Be sure that your chosen broker allows you to store your funds in your choice’s cold wallet.
Make a gift request for crypto.
Are there any friends or family members that can’t stop talking about cryptocurrency these days? Do you know anyone like this? Well, that’s great; the next time they ask you what you want for your birthday or Christmas. Tell them that you would love some cryptos in your wallet as a gift. These gift cryptos can be used to invest in cryptocurrencies in the future.
There is a strong recommendation that you should not sell off the entire amount at once. When you HODL at least a portion of the amount for a minimum of five years, higher returns might be on the horizon.
Crypto-forward stocks
By investing in companies that invest in crypto futures or blockchain technology. You can begin to invest in cryptocurrency if you want to get started investing in it. Additionally, these companies may also be involved in the blockchain niche and making significant strides towards. Furthering the development of this revolutionary technology.
Investing in cryptocurrency in this manner helps to reduce the investor’s exposure to the market’s aggressive volatility. When the market takes a steep dip due to crypto’s aggressive volatility.
Investment funds that track indexes
There has been a surge in the popularity of the crypto scene in recent times. Which has not only commanded institutional investments but has also piqued the interest of leading index funds. Many of the significant index funds in the market today have welcomed publicly traded companies involved in the crypto and blockchain industries. Companies ranging from Microsoft to Tesla are investing in cryptocurrency in record numbers, which are only increasing.
These index funds are a good option if you’re apprehensive of direct investments in cryptocurrency.
Crypto ETFs
A crypto ETF also offers an indirect way to invest in cryptocurrencies, making them especially useful for risk-averse investors.
Crypto ETFs are not directly linked to cryptocurrencies but their futures of them. The shares are traded on conventional stock exchanges. Crypto ETFs allow you to invest in cryptocurrency futures instead of cryptocurrency directly. BITO is the first Bitcoin ETF.
ETF for blockchains
Generally, blockchain ETFs are created by firms collaborating with or developing cutting-edge blockchain technologies. In other words, they could either be involved in developing blockchains or have invested heavily in using DLT technology in their operations by implementing it heavily.
Investing in a blockchain ETF is another indirect way of investing in cryptocurrencies.
By now, you have probably already come to terms with cryptocurrencies being based on blockchain technology. Therefore, an ETF tied to blockchain technology and its potential development is highly likely to associate with the crypto market strongly.
Know how much to invest in cryptocurrency
For your retirement portfolio, invest around 5% of what you are about to invest in cryptocurrency.
The general rule of thumb when it comes to investing is to make sure that you invest enough money so that you can make all of your monthly obligations and cover the basics costs even if the market tanked. The golden rule for cryptocurrency investors is not to go “all-in.” What is meant by this is that you shouldn’t just allot a lump sum of money at once. A better option is to put something in the basket every month in small amounts but put something in the basket every month.
Lastly, suppose you plan to invest in cryptocurrency to earn higher returns. In that case, it is a good idea to wait for at least a decade before selling off your investment if you plan to invest in cryptocurrency.