5 Steps to Becoming a Crypto Investor

Crypto investing is of interest to many people, but most of them don’t know where to start.

Here’s a very short guide to get you into crypto investing!

1. Decide If You Really Want to Invest in Crypto and Do Your Research

Investing in crypto coins is a decision that should be made with caution and after a lot of thought. Crypto-assets aren’t just an easy way to get rich quick. If you’re investing in this new technology, you should be willing to learn about it.

On the other hand, crypto coins are also a very risky investment. The technology is still evolving, the market is growing and the future of crypto isn’t clear yet. This is why it is not the safest long-term investment. As a short term investment, cryptocurrency is also dangerous because of its volatile nature.

If you’re not ready to take risks (which means that sometimes you’ll lose), trading or investing in crypto is probably not the best choice for you.

However, if you do decide to dive into this world, you need to read up on it. You should understand how cryptocurrency, blockchain exchanges and wallets work. The crypto market is hard to navigate also so you’ll need to understand the types of assets, how this market works and what affects it.

You should also understand which coins you’re interested in, not based on rumors and opinions but based on facts and research.

2. Find a Secure Wallet

After you’ve made your decision and have done some research, you should think about what wallet you want to use.

Crypto wallets are where your private and public keys will be stored. If someone hacks your wallet, you will lose your funds forever. This is why it’s important to choose convenient and secure wallets.

Many experienced investors recommend using both cold and hot wallets at the same time. Cold wallets are those that aren’t connected to the internet, therefore, they’re more secure. Of course, they can be affected by viruses but the chances are slimmer. The safest cold wallets are considered to be hardware wallets, which aren’t free like all the other ones.

Hot wallets are connected to the internet and are used for storing a small portion of your funds that you want to be very accessible. These are usually designated for day trading.

Trading with two wallets can become tiring and inconvenient very quickly. Fortunately CoinStats, in partnership with SignKey, launched the first fully guaranteed hardware wallet app. The transactions are so much easier to execute than with hardware wallets and safer than hot wallets. In short, it is the best of both worlds.

3. Sign Up for an Exchange

The next step would be finding a secure crypto exchange. These are platforms on which you trade cryptocurrencies.

Firstly, the exchange should have the coins and pairs that you are planning to trade. Don’t just sign up and then find out that they don’t trade the coins you’re looking to invest in.

Moreover, you should also research the exchange, find out whether or not it had security issues in the past. It’d be wiser to look into more popular and trusted exchanges, in order to stay as safe from scams as possible.

Currently, the most used crypto exchanges are Binance, OKEx, Huobi Global and BitForex. Regarding security Kraken, Coinhood and Poloniex are considered by many users to be the best.

4. Use a Crypto Portfolio Tracker

A crypto tracker is an application used to monitor and manage your crypto holdings. It helps to keep track of your investments and the total value of your portfolio.

Many of these applications have adopted features like customizable notifications, news aggregators and more to make the user experience more pleasant and trading more convenient.

5. Establish A Strategy

Using good tools is very important, but having a good investment strategy is crucial. Developing an investment plan will take a lot of time, research and failures, but it will be worth it.

Find tips, advice and tricks that you’d like to implement in your trading, start small and don’t get discouraged. Trading becomes easier and more profitable with experience.

Overall, crypto investing can be hard, however, it is a very interesting sphere. You should just do your research, use the right tools and have a good strategy. Good luck on your crypto investment journey!

Ryan Luke is a creative writer and content strategist from Company Name. I am a graduate of the University of London.