Are you planning to become a smart crypto investor? If yes, then it is high time to get introduced to what is it all about. Without having exposure to this latest technology, you may become puzzled. Here it is ……
Cryptocurrency is a chain of information whose distribution is not controlled by any single institution. Based on Blockchain Technology, it operates on digital transactional records that are independent of financial institutions. It eliminates the need for middlemen, thus allowing both buyers and sellers to carry on with their transactions independently.
The major attraction of this technology is that there is no need to pay any transactional fee. As a first-time investor, it is duly advisable to follow some important tips on how to invest money wisely that will serve as eye-openers.
Bitcoin is the Most Popular Cryptocurrency
Investing in cryptocurrency comprises of a learning curve. Among lots of choices available, Bitcoin has proved to be among highly popular ones. Want to know what makes it highly popular? Yes, the price of bitcoin trading is tracked regularly in the major financial media. As it is volatile, investing here requires high range of cautiousness.
Still, if you are interested in investing here, you will come across certain vital steps related to investment. Planning to become a smart crypto investor? If yes, then below are some important tips that you must not refrain from following.
Making Purchase through Cryptocurrency Exchanges
It is a fact that any cryptocurrency comprises of a value as long as people perceive it for having value. It is highly pertinent in this case as it is not backed by a government, unlike other currencies. As a result, investing in cryptocurrency is a much riskier investment. Are you searching for a reliable place to buy and put the same? If yes, then better approach cryptocurrency exchanges.
While on your way to search, you will come across a wide range of choices. Some of the most popular ones include Coinbase, Bitfinex and GDAx. They permit easy purchasing of currencies with the help of a debit card. Also, you will be able to buy fractions of coins. Hence, as a first-time investor; you need not invest thousands of dollars for getting into the game.
Exchanges charge a nominal fee at the time of conducting a transaction. If you are not ready to pay that extra charge, then there are some additional websites where you will be able to carry on with your exchange directly.
Starting from a Low Amount of Money
Once you have become familiar with some of the most suitable places for buying cryptocurrency, the next turn is all about starting with a certain amount. According to experts, it is advisable to start investing with a low amount of money. Rather than running after a high level of profit, it is better to start with a small amount of investment.
The moment you become successful in the trade, you may opt for a little bit more money. Slowly you will start gaining confidence, more it will become easy to take risks. As it is all about playing with money, it is better to carry on with the game only if you are having extra money.
Selecting the Right Place for Storing the Cryptocurrency
Typically, cryptocurrency is stored in a wallet for security. It is known for storing all records of transactions and it is private. At the time of selecting a wallet, you will come across two different choices that include:
- Hot Wallet
- Cold Wallet
The choice is yours. For security purposes, it is advisable to go with a cold wallet as it is highly secured. It is hard to access by hackers, thus will keep the record of almost all your transactions safe and secured.
Avoid Making Decisions Based on Hype and Noise
Maximum investors commit the blunder of making decisions based on luring advertisements. If you are also on the same stream, then please think twice. Investing your hard-earned money in haste may result in the incurring of high losses. Instead, it is advisable to take an expert consultation, research well about the market and check your account for financial balance.
Based on these factors, it will become easy to make a generous decision about investing in cryptocurrency.