How to Enter Cryptocurrency?

Cryptocurrency is on fire and many people are exploring ways to make a profit with it.

Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are on the rise and many other popular digital currencies are also present in the market.

Experienced traders have been investing in cryptocurrency for years and they are aware of multiple ways to enter cryptocurrency.

But as a first-time investor, cryptocurrency can be confusing, and you can successfully invest in cryptocurrency only if you know some simple and easy ways.

Let us find out what are some of the best ways to start investing in cryptocurrency.

Understanding Cryptocurrency

A comprehensive understanding of cryptocurrency is crucial to devising a sound crypto trading strategy.

A cryptocurrency is a digital currency that exists and is stored online. It is based on blockchain technology that is secured by cryptography.

You can send or receive cryptocurrency to anyone across the globe at any time. The transactions of cryptocurrency are anonymous and recorded online on blockchain technology.

Cryptocurrency works in a decentralized manner which means no involvement of a bank or government in your wealth. You are the sole owner and manager of your money in cryptocurrency.

Today, Bitcoin is the world’s largest cryptocurrency by market capitalization and over 10,000 cryptocurrencies are circulating in the crypto market.

The total market capitalization of cryptocurrency is estimated to be around US $1.019 trillion.

Many global leaders have come forward in support of cryptocurrency and one such global leader is Carl Runefelt, alias, The Moon.

He says, “Keep accumulating all the time within your budget essentially and I think the big goal that is of course a cool thing is to own one Bitcoin because one Bitcoin is actually now quite expensive but soon it is going to be absolutely unobtainable for a normal person.”

Listed below are some important steps that you should follow.

Choose a Crypto Exchange

The first step to buying cryptocurrency is choosing a crypto exchange platform.

A crypto exchange platform is a place where buyers and sellers meet to trade different cryptocurrencies. There are many cryptocurrencies registered on crypto exchange platforms through which you can select the currency of your choice.

Crypto exchanges have low fees and come with advanced performance charts to analyze the market.

Some of the popular crypto exchanges include Gemini, Binance, and Coinbase.

Create Your Account

Once you have chosen a crypto exchange, the next step is to create your account on it.

You can sign up on the exchange platform to open an account by verifying your identity. This is essential to meet regulatory requirements and prevent fraud.

You must remember that without providing your identification documents as asked by the crypto exchange platform, you will not be able to make any crypto transaction.

Deposit Cash

To buy cryptocurrency, you need to deposit cash in your account.

There are multiple ways through which you can deposit cash in your crypto exchange platform.

But the most popular ways include adding cash through your credit card or exchanging your existing cryptocurrency with a new one, for instance – Bitcoin for Ethereum.

Place Your Order

Once you have added cash to your account, you can buy a cryptocurrency.

There are hundreds of cryptocurrencies available on crypto exchange platforms from which you can select the currency of your choice. These cryptocurrencies are mentioned with their signs such as BTC for Bitcoin and ETH for Ethereum.

Most of the crypto exchange platforms also allow you to buy a fraction of a high-priced cryptocurrency like Bitcoin.

Select a Storage Method

After buying cryptocurrency, the next step is to store it.

You can store your cryptocurrency in a crypto wallet that is attached to the crypto exchange. In addition to this, if you want to store your cryptocurrency at a more secure location, you can either store it in a hot wallet or a cold wallet.

A hot wallet runs on internet-connected devices such as computers, phones, or tablets but comes with a higher risk of theft.

A cold wallet, on the other hand, is a crypto storage wallet that is not connected to the internet. It is present in the form of external devices such as a hard drive or a USB drive.

Carl on his YouTube channel, The Moon, says, “Your bank money can get frozen, or your gold can get confiscated but with Bitcoin, you can literally cross a border with your private keys in your head, and you can travel the world with millions of dollars literally stuck in your brain.”

The most important thing you should remember is to keep the key to your crypto wallet safe and never share it with anyone else.

Conclusion

People across the globe are trying to buy cryptocurrency to multiply their wealth.

But most people suffer losses in cryptocurrency when they lack its essential knowledge.

You can invest in cryptocurrency by following the above-mentioned tips at any time in a hassle-free manner.