Cryptocurrency Investing Strategies for Beginners

Cryptocurrency investment has many potholes beginners can fall into if they’re not careful or they invest unwisely. Nevertheless, the mountains are not insurmountable; with the strategies we will show you in this article, you can start a profitable crypto investment journey.

Cryptocurrency investment begins with choosing the digital coin you want to invest in. You may want to research online which ones are the most profitable right now. While you’re at it, do get acquainted with the Ethereum calculator because you may need it.

Is Cryptocurrency Investment a Good One?

Every investment is good and bad, depending on what angle you’re looking at it from. For instance, if you have low-risk tolerance, you may view the decision to invest in cryptocurrency negatively.

In addition, cryptocurrency investment’s worth may be weighed on the scale of your financial goals and investment strategies. Profitable crypto investment banks on setting smart investment strategies. Therefore, before investing in crypto, you want to lay out your goals and plans. You want to decide if you want to be a full-time investor, develop a passive income, or save up for retirement.

Whatever goal you’re setting and steps you are taking to achieve those goals, it is essential that you're well informed.

A Beginner’s Guide to Crypto Investing

Cryptocurrency investment is simpler and more straightforward than you may have thought. Below are steps for investing in any digital coin of your choice:

Step 1: Choose a Crypto Exchange Platform

You’ll need to choose an exchange platform that allows you to trade and store your digital assets. Several exchange platforms are available on the cryptocurrency market, so you want to be careful. When choosing an exchange, security is a key factor to consider.

The exchange should have standard security measures put in place. In addition, you want to consider their UI (user interface); it should be beginner-friendly. Also, you want to see that the exchange offers the digital coin you want to invest in.

Step 2: Get Your Digital Wallet

Once you register with an exchange platform in the cryptocurrency market, you will get a digital wallet to store your purchased coin(s). There are two digital wallet types: hot or cold wallet; crypto exchanges only offer hot wallets. Some exchanges automatically provide a hot wallet when you open an account. To guarantee the security of your cryptocurrency on a wallet, register with a reputable exchange.

Step 3: Link Your Wallet to Your Bank Account

The next thing is to connect your digital wallet to your bank account to enable buying and selling coins. Or you may go the other way round and link your bank account to your crypto exchange account.

Step 4: Place an Order

You can now start trading your Bitcoin or Ethereum; your exchange will have the coins you want. Once you decide how many coins, say Bitcoin, you want to purchase, go ahead and place an order. Some coins cost a lot, but they let you buy fractions.

Step 5: Manage Your Investments

After purchasing your preferred coin, you can decide what to do with it. You may use it to make online transactions, store it, or trade daily.

Proven Strategies for Profitable Crypto Investment

Below are ways you can maximize crypto investment for profit and they can also help you decide what stocks to buy as well.

• Portfolio Diversification: Diversifying your crypto portfolio is the best way to protect yourself from investment losses. You can start with a low-risk primary investment, then move to medium-risk, and later high-risk.
• Buy and Hodl: “Hodl'' means “hold on for dear life;” it’s an intentional misspelling for hold. This strategy considers cryptocurrency’s volatility while having faith in its prospects, suggesting that you hold your investment forever. This strategy will require that you resist the temptation to sell no matter how violently prices fluctuate.
• Hold LongTerm: This strategy is different from the one above in that you may sell once you’re satisfied with the ROI (return of investment). Here, you believe the coin’s value will rise, but you don’t mind selling for profit when you should.

In conclusion, cryptocurrency investment has risks that you must know, especially considering it is extremely volatile. The values on digital coins, like Bitcoin, rise and fall without warning. A good way to have an exhilarating crypto investment journey is by following proven strategies for making significant profits.