How to Invest In Cryptocurrency in 2022
A cryptocurrency is a virtual medium of exchange that functions on Blockchain and is stored in digital wallets. Cryptocurrencies are a hot topic everywhere. From Paypal allowing payments in crypto to Tesla accepting Doge currency for its merchandise, it has made great headway. The first cryptocurrency- Bitcoin has the most discussed and highly valued coin currently.
Crypto is a growing phenomenon with millions of people from all over the world being fascinated by it. But investing in cryptocurrency is not a straightforward process. It cannot happen magically, there are both risks and gains out of it. One should always be open-minded, research, and analyze all the potential outcomes of investing in cryptocurrency.
The first question that would immediately come to anyone’s mind is, “How to Invest In Cryptocurrency in 2022?” But before jumping to it let us first discuss several aspects of crypto investment and research to be done before investment:
Why do you want to invest?
When we start something new, we always have a bunch of W’s in our mind (What, When, Where, Why). But, it is critical to be clear about the “Why”. You should have a well-grounded reason for investing in cryptocurrency. The prospective gains and losses need to be considered in the long run.
Know the Company
Getting to know the company behind the coin tells a lot. If you have specific cryptos you are looking forward to starting investing in, do pay attention to the following points:
Research on the founding members of the crypto, their past projects. Do they have a transparent and reliable image? Are they well involved with the coin and can they be trusted?
The best place to research the cryptocurrency’s technology, functioning, and features is the company’s website. Visit the main website to gain basic know-how of digital currency.
- Previous Projects and History
Look through the company’s previous projects and alliances. What were the outcomes of their collaborations with other companies? Have they managed to maintain good relationships with them?
Familiarize yourself with terms that are commonly used in trading cryptocurrencies. When you are learning a new language, it is important to know the basic words to be able to make full sentences. Similarly, before investing in crypto understanding the common terminology is a must!
Examples of crypto-related terms are NFTs, Market Capitalization, Smart Contracts, wallets, Altcoins, etc.
All Cryptocurrency projects have a ‘white paper’ available. A white paper is a document incorporating what problem the crypto solves, its purpose, the technology behind it. Most crypto developers produce whitepapers to ensure their project is authentic and exhibits its unique features compared to other competitors. A white paper is a good way to attract potential investors to invest in the product.
Reading the white paper could give a thorough understanding of the coin and its features.
How to Invest In Cryptocurrency in 2022?
Here are few steps to follow in order to make an investment in cryptocurrency:
- Finding a crypto exchange
- Create an account with the Exchange.
- Verify your identity.
- Fund the wallet.
- Make the purchase.
Find a Crypto Exchange
Once you have made a research about the coins that you want to invest in, the next step is to find a crypto exchange offering the desired coins for trade. There are many well-known trustworthy exchanges to choose from. Deciding which investing platform to use can be confusing.
Some well known crypto exchange platforms are:
While settling on an exchange reflect on factors like trading fee, security, your home currency (For example: USD), interest rates, etc. Please make sure to do enough research before picking a platform for more clarity.
Create an Account With the Exchange
Once you have decided on the exchange option, the next step will be creating an account with the exchange. You will need to provide a few personal details when you are opening an account.
Verify Your Identify
Once you are done with account creation, the next step will be verifying your identity. Most of the exchanges will require you to provide one of your ID card information as crypto trading involves financial transactions.
Fund the Wallet
Almost all the exchanges come with inbuilt wallets. Wallets are the place where you will be adding fiat to use for trading and also storing cryptos. For additional security, a separate wallet is preferred by the majority of the traders. Here are a few Best Wallets for 2022.
Make the Purchase
Once you have funded the wallet, now you can trade the desired crypto on your preferred exchange.
How to Invest In Cryptocurrency in 2022: Some Additional Things to Follow
Observe other Competitors
Just like any other product in the market, there are many forms of cryptocurrencies available to choose from. Pick a few potential coins according to your suitability, and side by side observe their competitors. Observe the credibility, price potential, safety, sustainability, and other important factors.
Some of the most commonly known cryptocurrencies are:
- Ripple (XRP)
You can also look for Youtube channels and Twitter accounts providing better clarity about the cryptocurrency. Here are a few Youtube channels to follow in order to have clarity about Cryptocurrency:
- More Crypto Online
- Finance News
- Invest & Trade With Jaxx
- Crypto Wave
- Money Maker – Avi Lev
Additionally the Twitter Accounts Offering Proper Information on Cryptocurrencies:
How to Invest In Cryptocurrency in 2022: Communicate with Active Traders
Getting in touch with those who already have practical experience in investing is a plus point. Platforms like Reddit and Discord have subs and channels that are open to discussions and questions. It will be an excellent way to broaden knowledge as well as get better insights on trading.
Additionally, some of the platforms offering Technical advice can also be considered. The platforms are:
How to Invest In Cryptocurrency in 2022: Keep Learning
Find answers to every possible doubt and question that come to your mind. Youtube has a variety of beginner and technical analysis videos available. Read articles and daily updates on cryptocurrencies and the potential coins in your mind. Keep yourself up to date and learn as much as possible. You can search for hashtags on Twitter as well as follow crypto-oriented pages to get daily updates.
How to Invest In Cryptocurrency in 2022: Conclusion
Investing in cryptocurrency is not a hasty process, it takes time and extensive research. Be patient and keep an open mind throughout! Do not be discouraged if you face challenges; instead, prepare yourself for the investing world. It is one with both gains and losses. Before making big decisions exercise caution!
How to Invest In Cryptocurrency in 2022: Good luck, happy investing!