You may be thinking you’ve missed the boat when it comes to investing in cryptocurrencies – everyone else is already doing it, and the current atmosphere is nothing like the initial bubble.
However, now is still the right time to make your first investment. Read our guide to find out where to start:
Where to begin
The first step you need to take when looking to purchase cryptocurrency is signing up with an online exchange. That’s where you can buy cryptocurrencies for cash. If you are looking to trade in larger amounts, you will also have to verify your account.
We’d recommend CEX as a platform, where you can trade in Bitcoin, Ripple, Ethereum and Stellar Lumens.
Once you buy any cryptocurrency, you can keep it on the exchange, or transfer it to your wallet if you have one.
Where to find a wallet
A wallet means that you are the owner of the cryptocurrency being stored. It has a public address, but its key is private. The public address is used to receive your funds, while you use your key to spend them.
Some of the wallets you can use are Blockchain.com, MyEtherWallet or Rippex.
Essentially, that’s all you need to get started. All that’s left is doing research and making your investments.
How to research cryptocurrencies
This is the tricky part – will need to educate yourself as much as you can about the best cryptocurrencies to invest in, and play the game to the best of your ability.
Most people usually start with Bitcoin, but that is by no means a requirement. You can invest your funds where you see the best opportunities.
We’d recommend doing research on forums and other online communities where cryptocurrency developers and investors share their thoughts and predictions. One such place is Bitcointalk, a good forum where you can learn a lot about the different currencies and get to understand the landscape a bit more.
Some of the information you should be focusing on includes:
- Total number of coins available
- Number of coins in circulation at the moment
- Information on mining
- Information about the founders and developers of the coin
- Information about bounties (bounties are tasks you perform that reward you with cryptocurrency when completed)
- Information on wallets
- Information on the code of the cryptocurrency
- Contact information
You should also stay on top of prices and how they fluctuate, so you know at all times how much your investments are actually worth. Coins.live has live cryptocurrency prices you can keep track of to know where you stand.
Where to invest
As we’ve mentioned, knowing where to put your money can be the most challenging part of this process.
Bitcoin is probably the safest place to start, and it’s advisable to make it a dominant part of your investment portfolio. Other “blue chip” cryptocurrencies, such as Ripple, Stellar, and Ethereum, are also a good initial investment. Just like with “real life” investments, the blue-chip stuff is usually safe and profitable, although not as dynamic and exciting as you might hope.
As you keep increasing your investments and your portfolio, you can move on to low cap cryptocurrencies as well. But be advised that these investments will be risker, and may not pay as much as a blue-chip portfolio will.
Ultimately, the choice will always be up to you – it’s your money, after all. However, make sure you do your homework before committing to investment and don’t trust everything you read online. There are a lot of shady sources of information out there, so always double-check your facts.