Learning how to invest in crypto can be a daunting task. With thousands of cryptocurrencies popping up on the market, it is difficult to keep up with trends. Throw in things like volatility, FOMO (fear of missing out), and chances of being scammed and your head will be spinning.
The truth is, crypto investing does take some time to learn and master. Do not get discouraged. Learning by doing is the best recipe for success in this instance.
Certainly, there are things you can do to better yourself with the basics of how to invest in crypto. Our guide below has all you need to get started. Read on and enjoy your crypto journey.
Find an Exchange
To invest in crypto, you will need to head to an exchange. As of today, you aren’t able to purchase crypto through your bank or investment firm just yet. A cryptocurrency trading platform allows you to exchange fiat (US Dollar) for cryptocurrency. You can also perform crypto-crypto trading pairs.
In a nutshell, you can buy and sell crypto. With so many exchanges out there, you’ll want to find one with top-notch security, low fees, and a variety of coins. To make it easier on yourself, use a cryptocurrency multi-coin wallet with an exchange built-in.
Fund the Account
The next thing you’ll need to do is fund your account on the exchange, right? This will be done either by linking your bank account or sending crypto to it. Depositing fiat via bank will have fees attached, using a card may cost less.
Know Your Customer (KYC) is often required when using an exchange. This means providing information such as your government name, e-mail, phone number, social security number, and identification.
When you fund your account, you haven’t bought crypto just yet. It is important to note that you never want to leave money on an exchange. Once the money is in your account, you’ll need to invest in crypto by exchanging your dollars for crypto.
Invest in Crypto
Once you have connected a payment method and have deposited money into your account, now you can start to invest in crypto. Most exchanges will allow you to easily select the amount you’d like to buy by entering the amount in fiat.
Once you have performed a few simple trades, you can look into having more control with market and limit orders. A market order is where you buy at the current price of that specific crypto. A limit order is where you’ll set the desired price and once it reaches that price the purchase of crypto will be met.
When you buy crypto, you’ll be buying a fraction of the coin. For example, you could buy $100 worth of bitcoin and the price will fluctuate depending on the market (1 bitcoin equals 1 bitcoin).
Move Crypto to a Wallet
After you invest in crypto on an exchange, you can then move it to a wallet for safekeeping. For beginners, a custodial wallet offers a nice bridge from what you’re accustomed to with a bank.
Some exchanges will even have a built-in wallet (such as the one mentioned above) that allows you to move from your exchange account to your wallet. Once you have secured stored your coins, you can now hold, send or receive from anyone in the world.
Do Your Own Research
When you invest in crypto, you will want to do your own research (DYOR). This means taking the time to check out the crypto’s team, features, and safety. Never give in to FOMO or buy from emotion.
To stay in the loop on all things crypto investing, be sure to browse our blog. Practice safety and security and you will be well on your crypto journey way.