Investing in cryptocurrencies can make someone wealthy, but you will need to know some of the basic steps to go ahead with crypto investment.
Lots of people seem to be asking me about how to get started investing in bitcoin and some other alternate cryptocurrencies (known as Altcoins) – to the extent someone once asked me if it’s possible to become a millionaire from cryptocurrency.
That’s the actual reason why I’ve decided to give out my candid answers to all of the questions here on the CryptoStaunch with this article.
Before diving into how you can start cryptocurrency investment, please have it in mind that investing in cryptocurrency cannot make you rich and wealthy overnight. It is a very risky involvement, so you will always have to make research before trying anything out.
Now that we have cleared the air about getting rich-quick with bitcoin and other cryptocurrencies within 24 hours, let me guide you on how I actually started making money by investing in the cryptocurrencies.
Hope you are ready for the FULL money ride?
Yeah… I know you’re ready to start making money investing in cryptocurrency!
What is cryptocurrency investment?
Cryptocurrency investment is a process of buying and holding or exchanging (i.e. Trading) digital assets for profit making within a specific period of time.
Many people have been using this type of investment to make money online as fast as possible, but it is also one of the riskiest way of investing online.
Before you start trying to follow this style of investing in digital currencies, you must first need to understand how the entire market works, as well as things you will need to get started and keep your financial investment very safe.
Reasons to invest in cryptocurrency
If you’re buying cryptocurrency to trade, spend, gift, or donate, you’ll want to buy it before you plan to use it. And that’s why you want to know when is the best time to invest in cryptocurrency.
Like many financial decisions, it depends on a lot of factors like; which cryptocurrency you’re buying, the reason you’re buying it, your personal financial situation, and the current state of the overall cryptocurrency coin market capitalization etc.
Since the entire cryptocurrency market is still at its infancy, then I will suggest you should go ahead and buy any crypto asset of your choice now, as they all have potentials, while new coins emerge everyday.
If you’re one of the people who have yet to buy into the crypto hype, just hold that thought away for a few minutes and read some of the reasons you should start investing in cryptocurrency below:
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 and card transactions, and it also speeds up the whole process by avoiding the hassle of transacting with middle men.
There is also the added benefit of increasing the privacy of your dealings. This means 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 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. Huge ROI (Return On Investment)
There is this belief about entering the crypto world: the earlier, the better. Investing in this type of currency will eventually bring fruit but it will take time and a sufficient amount of knowledge to master it.
Popular currencies such as Bitcoin and Ethereum can give you as much as six to 46 times your initial investment. Indeed, the early adopters of Bitcoin are seeing huge returns nowadays.
Aside from these two, there are also other 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.
Cryptocurrency promises a long-term and viable difference in your investments. If you are planning to have a huge return of investment (which we all are), you should start looking for long-term investments.
3. Ideological empowerments
Are you tired of government institutions, large financial corporations, or monopolistic groups?
Unlike cryptocurrency, these types of institutions are usually governed by a centralized system that sets the rules on your transactions. With crypto, you are free to use your currency the way you want it.
This decentralization empowers the masses by creating an atmosphere that is more collaborative and people centered. You have full control over your hard-earned money. Transfer and receive coins anytime and anywhere at your own convenience.
Blockchain enables users to transact without disrupting the whole system. They get 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
Indeed, we are heading towards a cashless community, and this is further supported by the increasing number of banks and financial institutions like American bank JP Morgan Chase adopting crypto, or including it in their infrastructure.
However, Blockchain, which is the technology behind cryptocurrency, has potential to create waves in different industries, including, but not limited to accounting, supply chain management, healthcare, medicine etc.
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 the 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). This is a manifestation of hear-say mentality.
Note: There are theories that the media coverage can affect our perception of what is trustworthy and useful. So the more crypto is covered by various media platforms in a positive light, the more we may deem it useful.
A researcher by the name of Benedetto De Martino conducted a study analysing the behaviour of the people investing in crypto.
This makes them likely to get involved with the hype. 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 cryptocurrency they recommend.
Instead, always do your own research, or seek help from an accredited financial adviser to decide which cryptocurrency to buy and when you should buy it, depending on your current financial status and the public news publication.
Now let us head straight into how you can start doing crypto investment to make money to buy those Lambos you normally see in your dreams.
How to start investing in cryptocurrency
Currently, there are lots of cryptocurrencies in the market, and majority of them are still new coins with maybe, greater potentials than the ones that are already established to some extent.
In early 2017, Bitcoin and Ethereum were the most popular crypto coins due to the fast pace at which they were getting higher value, but then, I was still very confused and naïve at which one to put my money into.
In other words, I didn’t really put much interest in cryptocurrency investment.
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 too, but my major fear of lose was based on people’s opinions.
They were all saying that the both of them was definitely going to crash down.
Even though their prediction came through to an extent – BTC and ETH price dropped in value for a while – but later picked up more than 10x traction in value from what they were being valued respectively, as at then, and till the time of writing this post content.
Please Note: To invest and make money with cryptocurrency, you must have what i call – THICK SKIN to people’s opinion on the crypto assets you have invested in. Always do thorough research and stay focused on the cryptocurrency news for those coins in your portfolio to avoid FOMO (Fear Of Missing Out).
Do I have to buy a whole coin?
The answer straight and easy – you do not need to buy a whole crypto-coin. You can buy as little as 50 dollars, euros, pounds, or your local currency.
However, for someone that just started picking up interest in putting money in cryptocurrency investment, would want to know which crypto-coin is the best, and has potential to increase in value within time.
And that is what brings us to the next point of which crypto coin should you invest in.
Which is the best cryptocurrency to invest in?
If you are smart like me (out of experience), you would know already, that putting all the funds you have to invest with in one crypto coin asset at one time isn’t a great investment strategy in any way at all.
Depending on one cryptocurrency at a particular time to do well in value is a very risky venture.
The best practice is to create a portfolio of chosen coin assets, and invest in them respectively, using the fundamental research as a base of knowledge to know some of the problem they tend to solve in the real world.
You could gamble entirely on Bitcoin, Ethereum, Litecoin, Dogecoin, but you risk that one coin crashing. Instead, it’s safer for less-educated investors to spread out their risk across multiple assets.
In this case, buying a collection of coins, probably starting with Bitcoin, Ethereum, Litecoin and then adding Ripple if you’re interested would be better. That will account for your risk among different assets, but you also want to account for the volatility over time.
You could buy them today, then have them all crash tomorrow, or you could have them go down for a month only to rebound to a double what they are valued now, and end up missing out on buying them at their lower prices.
I know you would want to know some of the best crypto-coins I trust most. Well, Bitcoin and Ethereum are the most stable crypto assets presently, because they are very popular, and they solve real problems in the world.
In one of my previous posts, I discussed some of the best cryptocurrency you should invest in both for short and long term. I’ve also been doing a ratio of 2:2:1 of Bitcoin : Ethereum : Litecoin and it’s been working out well for me. Maybe you can follow the same way.
At this point you will also need to know the best way to safely store your cryptocurrency when you succeed in buying them, so head over to the point below, where I will show you how you can store your crypto assets.
How do you buy cryptocurrency safely?
If you want to have and as well know the full power of cryptocurrency as a beginner, you need to actually 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.
By buying real coins, you will not only be able to store value in a non-confiscation and uncensored form of money, but you will also be able to experience the revolutionary power of sending money to anyone in the world without relying on any intermediary, or middleman (like a bank).
Buying cryptocurrency from an exchange online is very simple, all you need to do is stick to the best crypto exchange that is beginner friendly. I will recommend you purchase your very first crypto-coin from a popular exchange aggregator, CoinSwitch.
It is a cryptocurrency exchange aggregator that gathers prices from almost all cryptocurrency exchanges online in one place, for you to make the right choice according to prices according to the amount of coins you would want to buy.
Buying cryptocurrency from the coinswitch aggregator is easy, fast, simple and secured. You don’t really need to sign-up, or create an account on the platform to buy your first cryptocurrency (though it is advised for keeping track of your purchase history).
All you need to do is input the amount you want in dollars, or euro, then select your desired crypto asset (either BTC, ETH or LTC), and next screen will ask for crypto wallet address, where you will receive the coin you purchased.
Buying cheap Altcoin cryptocurrency to invest
Buying cheap cryptocurrency (altcoins), can be challenging for crypto-starters sometimes, because normally, they cannot simply be bought with traditional currency (e.g. Fiat Currencies) just like the way you would buy bitcoins, ethereum or litecoin from coinswitch platform.
Even though it’s possible to buy cheap altcoin cryptocurrencies from the aggregator platform, in this case, i will still suggest you go over, as well transfer your newly acquired cryptocurrency to Binance crypto trading exchange platform.
It will be easier and safer for you to trade your coin for most of the cheap altcoin cryptocurrencies on the market section of binance exchange platform. Binance is one of the most popular, fast growing exchanges in the market. It was established in the year 2017.
Another plus for Binance is that, to the contrary of other exchanges, it does not ask you to verify your identity if you are transacting less than 1 Bitcoin per day.
Here’s how to buy your first altcoin:
- Buy either BTC, ETH or LTC on coinswitch
- Create an account at Binance exchange
- Send your Bitcoins to Binance platform
- Use that Bitcoin to buy any cryptocurrency that you wish
- That’s just it!
Other popular altcoins exchanges are Bittrex and Kraken, but they’re far from matching number of coins and user experience Binance gives to its users.
Take Note: Please only use trustworthy exchanges. You may find yourself in a situation where there’s a coin that you really want to buy, but that is only being traded on a shady and unknown exchange.
How to store cryptocurrency safely
There are many crypto wallets in the market, both for desktop, mobile wallets and even online crypto exchange wallets, but only few are can be said to be the best multi cryptocurrency wallets.
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. And that means, you should always aim at having access to your crypto wallet privates keys.
What is all that stuff? Well, your private keys identify your coins on the blockchain, and when someone gets access to it, your invested assets can be stolen. You don’t get those keys on Binance, Coinbase, Bittrex, or any other exchange.
You have to transfer your crypto to an offline wallet if you want to hold it for a long term.
No matter the cryptocurrency wallet you chose to store your crypto coins, always avoid leaving your cryptocurrency investments in an exchange wallet, to avoid loosing your coins assets instantly due to hack, or theft.
Now the questions should be; Mr. Staunch, what is the most secure and safest crypto wallet?
Personally speaking, and with my experience with cryptocurrency assets, I always recommend using popular offline crypto wallets that gives you access to your private keys and passphrase – just like any Ledger Nano Hardware wallets or Trezor wallets.
Storing cryptocurrencies in offline wallets have been popular with active crypto investors. And the two most popular ways to store your cryptocurrency offline securely using one of the safe crypto wallets.
Or you can simply download one of the best offline software wallets (i.e. if you cannot afford to invest money in buying a top-notch secure hardware wallets) to fully guard you crypto-coin investment.
In case you don’t know what I mean by hardware Wallet – A hardware wallet is a special type of cryptocurrency wallet, which will store the user’s private keys in a secure hardware device-like USB. Read more about the best crypto hardware wallets here.
How to keep cryptocurrency wallet safe
Investing in cryptocurrency and securing your 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 fully secure a crypto coin wallet, fully guard your cryptocurrency asset and wallet from lose, or hackers.
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 portfolio. This is why, after buying crypto, and securing them in a wallet, most crypto investors get addicted to constantly checking the price of their investment assets.
There are essentially two main ways in which you can follow the price movements of the cryptocurrencies you hold: By using crypto price sites like, CoinMarketCap, or best crypto portfolio tracker app like Blockfolio.
An alternative to using a site like CoinMarketCap, or an app like Blockfolio, you should find a crypto portfolio tracker. These portfolio trackers are usually simple apps that you can download to your smartphone, and they not only show you the latest crypto prices, but also the total value of your crypto portfolio.
If you’re looking for a good crypto portfolio app, then checkout my review on one of best cryptocurrency portfolio trackers, KyptoGraphe.
Follow crypto 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 crypto investment? I will personally advice you to follow some, or even most of the cryptocurrency influencers on either YouTube, Twitter, Facebook or Instagram.
If you are still wondering how to find out these cryptocurrency influencers am talking about right here, please read my guide on the major crypto-coin influencers to follow today.
Is cryptocurrency a good investment for you?
Yeah!! Investing in cryptocurrency is in every way a good investment so long as you followed through till this point. It can actually make you very wealthy within time, or in the very near future.
Just make sure you secure your cryptocurrency assets with any of the best crypto wallets like; Ledger Nano X.
Even using yet another hardware wallet from another company called, Trezor – you can be rest assured that no hacker, or thief strip you off your investment.
I strongly believe that at this point, you are no longer a beginner, because am sure that you’ve known almost everything you will need to get started with investing in cryptocurrency the proper way that will set you off towards making your first million from crypto coins.