Cryptocurrencies have been one of the significant breakthrough investment opportunities in the past 5 to 10 years. We have cryptocurrencies like bitcoin that grew from under $1 to over $60,000 in a space of 13 years. This rapid growth in the value of cryptocurrencies has encouraged several people in all walks of life to invest in crypto for both short-term and long-term gains.
However, before you invest in cryptocurrencies, you need to know the right procedures to avoid making fatal mistakes along the way. In this guide, we will discuss the step-by-step procedures you can use to invest in cryptocurrencies.
Step #1: Choose a cryptocurrency exchange
The easiest way to get started investing in any cryptocurrency is by using a crypto exchange website such as Coinbase or Binance. There are several other exchange sites, but these two are the most popular and the safest to use. If you are in the USA, Coinbase is the best alternative.
However, those outsides of the USA can use Binance since it supports over 43 fiat currencies, so there are high chances that your country’s currency is among. Here is a list of the top crypto exchange sites you can choose from. Make sure you choose one that supports your local fiat currency.
Step #2: Create an account with the exchange site
After choosing an exchange platform, create an account with them. Make sure to use the correct information because most exchanges require verification at some stage.
Step #3: Deposit money to your exchange platform wallet
Most of these exchange sites can integrate with several traditional payment platforms, including VISA, MasterCard, Express America, and many more. So, go to payment settings and add one of these payment methods in order to add money to the crypto exchange wallet. This money is what you will use to buy crypto.
Step #4: Determine which cryptocurrency to buy
This is probably one of the most important steps because the currency you choose will have an impact on how well you will perform at the end of the day. The choice of which cryptocurrency to buy should largely depend on your investment strategy.
For those looking at long-term investment, choosing more stable and tested coins like BTC and ETH is the way to go. However, if you are looking at short-term investment, choosing volatile coins like Solana is the way to go. Do your research to find the best options available.
Step #5: Place your order
Once you have decided the cryptocurrency you want to invest in, place an order. Most of the exchange platforms have limits of the minimum and maximum crypto you can buy using their site. Take time and find out these limits to avoid inconveniences.
Step #6: Review your portfolio
You need to frequently review your portfolio and make changes where necessary. For instance, if you find out that one of the currencies you invested in is not gaining value as you expected, you may opt to sell it and buy those that appreciate much faster.