How To Start Your Crypto Investing Journey
Cryptocurrencies have only been around for merely a decade, but the asset has quickly gained popularity. From large communities that trade meme coins to technologists working on expanding blockchain, cryptocurrencies are becoming a full-fledged asset in their own right. If you are interested in investing in cryptocurrencies, here are five things you should know before buying or selling BTC, LTC, SHIB, or any of the thousands of cryptocurrencies and tokens available on the market.
Choose an Exchange
Investors have the NYSE, LSE, and other global exchanges to buy and sell company stocks. With cryptocurrencies, it works the same way in that you need an ecosystem to buy and sell cryptocurrencies in and someone to facilitate the transactions. Because the market is relatively nascent in developed countries and nonexistent in others, finding a legitimate exchange can be challenging. Exchanges, like CoinDCX and UnoCoin, are popular exchanges in countries outside the U.S. You can also start crypto investing with SoFi, a secure and user-friendly platform with more than 2.5 million members.
Open an Investing Account
Once you’ve decided on a crypto exchange, open a trading account where you’ll manage all your crypto-related orders. A strict registration process is typically enforced by exchanges, and the process will be identical to that of a bank. The verification process will require you to input basic personal information as well as bank account details where the money will be wired from. You may also be asked to allow the exchange to share key customer data points in order to proceed with the verification and sign-up process.
Add Funds to Your Account
After creating an account and signing in, you are now ready to transfer funds to your account and start your crypto journey. Most exchanges offer different deposit methods, including debit cards, wire transfers, and checking accounts. You can also transfer coins from an existing wallet or exchange them into your new crypto account. Note that, depending on your chosen deposit method, you may have to wait several days for your funds to be active and ready for use.
Put Your First Order
With usable funds in your account, you can now buy cryptocurrencies of your choice. By far, the most popular options include BTC, LTC, and ETH. Memecoins, which are extremely cheap, have become popular as well, especially for undercapitalized investors who don’t have the capital to buy a ton of Bitcoin. DOGE, AMP, and SHIB are some of the popular altcoins on the market.
Have a Strategy
Always have a plan before you buy any financial asset. This especially rings true for an asset class as unproven and volatile as cryptocurrencies. Manage risk by practicing proper position sizing, placing hard stop losses and target profits, and finding potential use cases for the cryptocurrency in the following years to come. Avoid buying into a cryptocurrency just because it’s trending on Twitter or has been surging in price for the last N days.
As with any financial market, the cryptocurrency space is fraught with risk that investors should have a fundamental understanding of before putting up any cash. Start your crypto investing journey right from trusted places like SoFi .
