Investing in cryptocurrencies can make someone very wealthy!
However, you will need to know some of the basic steps to go ahead with crypto investment before getting your hands dirty.
Someone once asked me, if it’s possible to become a millionaire from going into Bitcoin business.
Lots of people seem to be asking me about how to get started investing in BTC and some other alternate cryptocurrencies (known as Altcoins).
Before diving into cryptocurrency investments, have it in mind that investing in digital assets cannot make you rich overnight.
It is a very risky involvement, so you will always have to make research before trying anything out.
Now that we have cleared getting rich-quick with cryptocurrencies, let me guide you on how to start investing in them safely.
Let’s start already!
What is crypto investment?
Cryptocurrency investment is a process of buying, holding and exchanging digital assets for profit making within specific period of time.
Many people have been using this type of investment to make money online with crypto, and as fast as possible.
However, it is also one of the riskiest way online.
Before you start trying to follow this style of investing in digital currencies, firstly, you need to understand how it works.
You’ll also need to know those things you need to keep your financial investment very safe from different kinds of theft.
Reasons to invest in cryptocurrency
If you’re buying cryptocurrency to exchange, spend, gift or donate, you’ll have to acquire it before planning to use it.
Like many financial decisions, it depends on a lot of factors;
- The cryptocurrency you’re buying
- Reason for buying the coin
- Your personal financial situation
- State of the overall market capitalization etc.
Since the entire cryptocurrency market is still at its infancy, I’ll suggest you buy any crypto asset of your choice, as they all have potentials everyday.
If you’re one of those yet to buy into the crypto hype, below are some of the reasons you should start investing in crypto now:
1. Massive income potentials
Cryptocurrency facilitates straight-forward transactions, avoiding the need for banks and other payment systems to be involved.
Bypassing these third-party institutions minimizes the processing fees usually associated with cash or credit card transactions.
It also speeds up the whole process, by avoiding the hassle of transacting with the middle-men.
There are also added benefits of increasing the privacy of your deals (i.e. the probability of identity theft due to data breaches in third party institutions is mitigated).
The security, transparency, and immutability of transactions offered by blockchain is another attractive aspect of cryptocurrency investment.
It can even serve as an alternative to financial transactions such as; remittance and purchase of goods.
However, keep in mind that all transactions made with this type of currency is final – Once you send a payment, you cannot retract it.
There are several promising avenues of crypto that you can be a part of should you choose to invest in it.
2. High ROI (Return On Investment)
Investing in this type of currency will eventually bring fruit but it will take time and a sufficient amount of knowledge to master it.
There is this belief about entering the cryptocurrency world and market, and that is – the earlier, the better.
Popular currencies such as Bitcoin and Ethereum can give you as much as six to 46 times your initial investment.
Aside from these two, there are still other crypto-coins that can be quite promising in the market.
The key is to research about their purpose, and invest in what is most compatible with your personal finances.
Think carefully as these currencies are highly volatile.
If you are planning to have a huge return of investment, you should start looking for long-term investments.
3. Ideological empowerments
Unlike cryptocurrency, financial institutions are usually governed by a centralized system that sets the rules on your transactions.
On the contrary, dealing with cryptocurrency makes it free for you to use your currency the way you want it.
This decentralization empowers the masses by creating an atmosphere that is more collaborative and people centred.
You have full control over your hard-earned money, which helps you to transfer and receive coins anytime and anywhere at your own convenience.
Blockchain enables users to transact without disrupting the whole system, while getting a sense of responsibility in making the system work.
The beauty of decentralization is that it is powered by its various members and not a single entity.
4. New technologies
We’re indeed heading into a cashless community, and it’s further supported by the increasing number of banks and financial institutions adopting crypto in their infrastructure.
However, Blockchain, which is the technology behind cryptocurrency, has potential to create waves in different industries.
One of the most talked about aspects of blockchain is its decentralized nature, meant to be a game changer in the way we conduct and record transactions.
Essentially, what this means is there is no central figure that governs transactions, enabling it to be less costly, more secure, and unmanipulable.
Blockchain has recently emerged in other industries such as in academia, real estate, healthcare, and networking.
In education sector, the Sony Global Education in partnership with IBM, has developed an educational network that makes use of blockchain.
It facilitates the verification of the student records efficiently and prevents the likelihood of fake degree holders in the institution.
5. Joining bandwagon
As much as it promises many opportunities, some say that people invest in cryptocurrency, simply, because of its rise in popularity.
As the prices and returns go up, the media tends to advertise it in different ways.
Widespread coverage in different media platforms have given people FOMO (Fear Of Missing Out), due to the manifestation of hear-say mentality.
The more crypto is covered by various media platforms in a positive light, the more we may deem it useful.
Some people with heightened senses have the tendency to get involved before others, because they think that is what the other members will eventually do.
I personally recommend being sceptical of some opinions from individuals that affects the price of a crypto they recommend.
Instead, always do your own research to decide which cryptocurrency to buy and when to buy it, depending on your financial capabilities and news publications.
Now let us head straight into how you can start doing crypto business to make money to buy those Lambos you normally see in your dreams.
How to start investing in cryptocurrency
There are lots of cryptocurrencies in the market, and majority of them are still new coins with potentials than the ones that are already established.
In early 2017, Bitcoin and Ethereum were the most popular coins due to the fast pace at which they got higher value.
Ethereum as at then, spiked up to an all-time high of $40, alongside Bitcoin, which also was spiking beyond $1,200 as at that time.
Even though people e(including myself) about this type of investment, these assets later spiked further in value to what they are currently.
Note: To invest and make money with cryptocurrency, you must have THICK SKIN to people’s opinion on the crypto assets you have invested in.
Always do thorough research and stay focused on the news for those coins in your portfolio to avoid FOMO (Fear Of Missing Out).
1. Buy chosen cryptocurrency
If you want to have the full power of cryptocurrency as a beginner, you actually have to buy either Bitcoin, Ethereum, Litecoin or Bitcoin Cash.
These are some of the best stable cryptocurrency you can buy right away to store value in digital world.
Buying crypto-coins will allow you to experience revolutionary power of sending money anywhere, without relying on any intermediary or middleman like banks do.
2. Store cryptocurrency safely
There are many crypto wallets in the market, both for desktop, mobile wallets and even online exchange, but only few are said to be the best.
One thing you have to put in your mind when it come to storing cryptocurrencies, you should always consider high security and also take it very serious.
This means you should always aim at having access to your crypto wallet privates keys.
Private keys identify your coins on the blockchain, and when someone gets access to it, they have full access to your invested assets.
You don’t get those keys on exchange, and you have to transfer your crypto to an offline wallet if you want to hold it for a long term.
No matter the one you chose to store your coins, always avoid leaving your investments in an exchange wallet, to avoid loosing your assets.
Storing cryptocurrencies in offline wallets have been popular with active crypto investors.
If you cannot afford to invest money in buying a secure crypto wallet to fully guard your investment, you can simply download a software wallet.
In case you don’t know what I mean by hardware wallet; it’s a special type of wallet that stores the user’s private keys in a secure device-like USB.
3. Keep cryptocurrency wallet safe
Investing in crypto assets also entails that you must be aware of the ways someone can loose all the investments at an instant.
Therefore, you must always put your mind on the security part of the whole thing.
In one of my articles, I listed out all the ways to secure a crypto wallet, to fully guard your asset from loss.
4. Keep track of cryptocurrency prices
Due to the high volatility of cryptocurrencies, a single day can make a huge difference in the value of your crypto portfolio.
This is why, after buying and securing them in a wallet, most crypto investors get addicted to constantly checking the price of their assets.
There are essentially two main ways in which you can follow the price movements of the cryptocurrencies you hold:
An alternative to using a site like CoinMarketCap, or an app like Blockfolio, you should find a crypto portfolio tracker.
These trackers are usually simple apps that you can download to your smartphone, and they not only show you the latest prices, but also the total value of your portfolio.
If you’re looking for a good crypto portfolio app, then checkout my review on one of best cryptocurrency portfolio trackers, KyptoGraphe.
5. Follow influencers on social media
If you don’t follow people that matters in the cryptocurrency market, how will you know what is going on with your investment?
I will personally advice you to follow them on either YouTube, Twitter, Facebook and Instagram.
If you are still wondering how to find out these influencers am talking about right here, please read my guide on the crypto influencers to follow.
Frequently Asked Questions
Investing in cryptocurrencies
I believe that at this point, you’re no longer a beginner, because am not trying to convince you to invest in crypto with this guide.
Just make sure you protect your invested assets with any of the most secure cryptocurrency wallets.
If you can purchase a hardware wallet, you’ll be rest assured that no hacker or thief will strip you off your crypto investment.