The crypto market has solidified itself as a great investment and trading space long ago. In the beginning, only a few early adopters saw the potential and started trading crypto and learning how it works as it progressed. Now, however, more and more people want to enter the market, but many are met with barriers like not knowing how to start and what to do. Below, you’ll find all the information you need to get started with crypto investing, including trading tactics and platform recommendations. In addition, we’ll share the three cryptocurrencies that experts single out as the best investments at the moment so that you have a sense of what you should invest in as you start. Let’s start!
How to Invest in Cryptocurrency
Investing in cryptocurrency has become much more accessible than it was at the beginning, which is great as this allows people from all backgrounds to make money in this profitable market. To begin investing in crypto successfully, you need to follow the below-given steps:
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Step 1: Choose a Cryptocurrency to Invest In
Before we begin explaining this step, we must mention that you don’t have to choose only one cryptocurrency to start investing. Namely, you can start with multiple, which is actually recommended as this diversifies your portfolio. So, by investing in various coins, your profits won’t be dependent on just one token, and your risk will be more manageable.
To choose sound cryptocurrencies to invest in, you must do your research like you would when buying stocks from companies. However, vetting crypto can be much harder than vetting a company, as there are many coins that have become fronts for fraud, especially pump-and-dump schemes. It’s also quite difficult to distinguish pump-and-dump schemes from actual solid crypto investments.
So, we recommend you look for crypto investment advice from experts and see which coins they recommend at the time when you’re investing. That’s why, after showing you how to invest in cryptocurrency, we’ll share the top three coins that experts say are excellent investments for 2024. Of course, not all experts provide legitimate advice, but we’ve been in this space for a while, so we’ll only share insights from sound sources. Doing your own research is also always welcome.
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Step 2: Pick a Crypto Trading Platform
Once you’ve chosen one or multiple cryptocurrencies to invest in, the next thing you need to do is choose a crypto trading platform or crypto exchange to invest in them. Crypto exchanges allow you to invest in coins directly, and there are a few secure and popular ones that you can choose from.
The best options include Coinbase, Gemini, and Kraken. Of course, there are more good choices, and the one you decide to go with depends entirely on you. Some of the factors you should consider when picking a crypto exchange include security, trading volume, trading fees, minimum investment requirements, and the types of coins available for purchase on a certain exchange.
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Step 3: Storage and Wallet Options
When you purchase cryptocurrencies using platforms like Coinbase, you won’t have to create a wallet yourself, as your crypto will be automatically held in a hosted wallet. Think of it as how your bank keeps your money in a savings or checking account. Similarly, the crypto trading platform will keep your crypto for you.
This method of storing crypto is great for beginners, as creating and securing a crypto wallet on your own is a bit more complicated. However, if you opt for this method, make sure you’re using a platform that has strong protection against online threats and hackers and also provides financial insurance. Look for features like strong encryption and a good track record of keeping crypto safe in the past.
If you don’t want your crypto to be stored by your crypto platform, you’ll need to create a crypto wallet. Crypto wallets hold private keys that give you access to your digital assets (cryptocurrencies you’ve bought). They are recorded on the blockchain, and you can either get a hot or a cold digital wallet.
A hot wallet can be accessed via the Internet and is more convenient. On the other hand, a cold wallet is a physical device, like a USB drive, that keeps your crypto keys offline. Cold wallets are generally safer than hot ones as they’re completely offline.
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Step 4: Figure Out How Much You Can Invest
When investing in crypto, it is essential to learn from people’s mistakes. Usually, the number one mistake that most people make in this regard is dumping all their life savings into one coin and hoping for the best. Of course, sometimes, this will prove fruitful, but this strategy is not recommended at all as it can also lead to you losing everything.
So, before you invest, consider factors like your budget, risk tolerance, and investing strategy. Also, it’s better that you focus on the total amount of money you want to invest rather than the number of cryptos you want to purchase. The best advice we can give you is not to invest more than you can afford to lose. You can buy whole and fractions of a token, so even if a certain coin is too expensive for you to buy outright, you can still purchase fractions of it and build up your holdings as you go.
Once you determine how much money you can invest, you can purchase the coins that you want through your crypto exchange. The whole process is fairly easy and usually involves clicking a few buttons on your computer or phone.
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Step 5: Manage Your Portfolio
How you manage your crypto portfolio depends on the strategy you are using. In the next section of the article, we’ll share a few strategies that have proven to be successful and lucrative.
Best Cryptocurrency Investment Strategies You Can Use
Some of the cryptocurrency investment strategies that are highly recommended by experts include the following:
- Buying and Holding: Buying and holding is a long-term investment strategy that involves holding your investments for a longer time instead of selling your tokens immediately after they increase a bit in price. This is a great strategy for coins that have great potential to grow and allows you to buy low, watch the coin grow and gain traction, and then sell higher.
- Diversification: Diversification is highly recommended for all crypto traders and investors, as it minimizes your risk significantly. It involves investing in multiple cryptocurrencies and other crypto-related opportunities.
- DCA (Dollar Cost Averaging): Dollar Cost Averaging is an old investment strategy that is also used with traditional investing (investing in stocks, bonds, etc.). It involves investing a fixed amount of money into crypto at pre-determined intervals. Let’s say you have $100 to invest in crypto every month. With DCA, you won’t put those $100 aside and only invest once that number has increased. Instead, you’ll invest those $100 dollars every month.
- Day Trading: Day trading can be quite lucrative, but it’s a strategy that is only recommended for those who have previous crypto investing experience. It involves buying and selling coins on the same day and requires extensive research and market knowledge.
Now that you know how to invest in crypto, let’s take a look at the three cryptocurrencies that, according to experts and analysts, have huge potential for growth and gains. They include XRP, Algotech (ALGT), and Polygon (MATIC).
A Short-Term Bearish Bias Could Present a Great Buying Opportunity for XRP
There’s a lot going on with XRP right now. First things first, there’s speculation about an XRP-spot ETF that arose after Greyscale incorporated XRP into its Digital Large Cap Fund (GDLF). Even though the SEC Chair warned people about the likelihood of crypto-spot ETFs, XRP holders are still hoping that they will actually become a thing soon, which could propel XRP to new heights.
Also, crypto as we know it might completely change for the better depending on what Judge Katherine Failla decides in the SEC vs. Coinbase battle, so the community is holding its breath and hoping for positive news soon. However, the SEC isn’t done with XRP just yet, even though its battle with Coinbase is still raging on.
Namely, the SEC is now requesting detailed financial statements and institutional sales records from XRP. During this time, a mysterious movement of 25.6 billion XRP unraveled, which many took as a sign of a major security breach. However, the huge XRP movement turned out to be a failed exploit attempt at using the XRP Ledger’s Partial Payments feature.
All of these developments, along with the SEC’s fixation on XRP, have led XRP to decrease in price by 7.71% in 30 days, which currently puts XRP at $0.57. Experts say that XRP will continue to see price decreases in the short term but will then turn things around and become more stable in the long term. Also, many hint at a huge jump in XRP prices should Bitcoin manage to reach $200,000 after its halving. They say that XRP could jump to $46.5, which would be astounding.
Algotech (ALGT) To Surge by 450% At Launch
Algotech (ALGT) is a revolutionary algorithmic trading platform that will completely change the way we go about crypto investing. Namely, Algotech (ALGT) will replace manual trading with algorithmic trading, allowing traders to get rid of issues like emotional bias, greed, fear, and clouded judgment completely.
Instead, Algotech (ALGT) uses advanced machine learning, AI, quantitative research, and extensive data analysis to make fast, well-informed, and data-driven investment decisions. So, Algotech (ALGT) will give its holders the chance to leverage all the historical and real-time information available on the market and make more accurate investments.
With Algotech (ALGT), you can choose from a wide range of algorithmic trading strategies, including trend following, breakout trading, mean reversion, arbitrage, bull market strategies, bear market strategies, and sideways market strategies. Also, Algotech (ALGT) holders will get a plethora of other benefits, such as dividends, voting governance rights, high-speed trade execution, increased efficiency, partial ownership of the Algotech (ALGT) software, consistency, and more. The dividends represent a fixed percentage of the 30% performance fee that Algotech (ALGT) takes, providing Algotech (ALGT) holders with passive income on a regular basis.
The Algotech token, ALGT, will start its seed sale at $0.04 and launch at $0.15. This will mark 275% gains for early ALGT adopters, and that’s before the token even takes its first steps on exchanges.
Polygon (MATIC) To Rise Even Amid Misappropriation Claims
Few days ago, Polygon (MATIC) was accused of misappropriating funds and dumping on Polygon (MATIC) holders. This accusation came from a crypto intelligence firm called ChainArgos, which claimed that the Polygon Foundation diverted 400 million MATIC to Binance. These 400 million MATIC tokens were meant to reward stakers per Polygon’s original tokenomics. This statement was made on January 15th, and Polygon (MATIC) immediately saw a fall in price as a result.
Currently, Polygon (MATIC) is trading at $0.75, marking an 11.35% decrease in price since the accusation was made. However, experts say that the whole thing could be a coincidence, and a technical analysis of Polygon (MATIC) shows a highly positive future for the token.
Namely, many say that Polygon (MATIC) has huge potential to surge to $1.42 by the end of 2024. As a result, Polygon (MATIC) is considered one of the best cryptocurrencies to invest in right now.
How Do Cryptocurrency Exchanges Work?
Before we wrap things up, let’s clear up the last piece of the puzzle – how crypto exchanges work. The most important thing you need to know is that there are centralized, decentralized, and hybrid crypto exchanges.
Centralized exchanges work similarly to stock exchanges or full-time brokerages. They are regulated by one authority (usually the company that has created them), which monitors every account and maintains full charge on every transaction. On the other hand, decentralized exchanges run on the basis of distributed ledger infrastructure. They enable cryptocurrency trading without any authority and allow users to have full control of their keys and crypto investments.
Lastly, hybrid exchanges are a mix of centralized and decentralized exchanges, offering the best of both worlds. They come with the ease and convenience of centralized exchanges and the privacy and security of decentralized exchanges.
The best and most popular crypto exchanges include the following:
- Kraken – centralized exchange;
- Gemini – centralized exchange;
- Coinbase – centralized exchange;
- KuCoin – centralized exchange;
- Crypto.com – decentralized exchange.
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
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Source: thinkbitcoins