After my first article, Cryptocurrencies- Digital Wealth in a Flip (read it, if you haven’t), there have been so many requests from people asking to be taught on how to invest in cryptocurrencies, and the easy ways to go about it.
This article is in response to your requests as it will expose step and step, on how to invest in cryptocurrencies, and make investing in cryptocurrencies as simple as possible.
Decide on the Amount
The first step of investing in cryptocurrencies is to decide how much you want to invest. It is advisable to invest your spare money or money you could easily let go (every investment has risks including cryptocurrency investment). It’s your money and I can’t dictate for you on how to deal with your money, so you hold the knife and the yam.
You also have to decide whether you want to buy to sell when you have made a little profit margin, unless you are investing to hold it as an investment. Holding is advisable, if it’s possible for you to hold a cryptocurrency. You can go long for years and you will be amazed of the value creation that will accumulate. Of course, nothing is guaranteed.
Decide on the Coin Type
You need to decide on what coin you want to invest on. Yes, you need to decide what coin you want to buy from the exchange. There are a whole lot of coins with high prospects. So you can pick any you like or your instincts lead you to. You can decide to go for Bitcoin, which is the most popular and the most expensive now, or you could choose from other coins referred to as altcoins and invest in them.
There are more than 3000 altcoins in existence so you could pick from any of them and invest in. I’m not here to tell you which you have to pick and invest in.
Create Account and Wallet
The next step now is for you to create a cryptocurrency account with any of the online cryptocurrencies exchange sites. You are asked of your email address to be used in creating the account. It’s advisable you use your email address or any email address you have exclusive access to in creating the account for security reasons. Creating an account is very simple; it’s just to open any of the exchange wallets online.
Once an account is created you are assigned a wallet. The wallet is where you store your coins, you can use that wallet to send or receive coins to and from other wallets. Some exchange wallet can accept or recognize more than twenty coins while some wallets can accept or recognize less than five coins.
You can only fund your wallet with the coins recognized or accepted by the exchange. Due to the popularity of Bitcoins, and for the fact that it’s widely accepted and mostly traded with, most of the exchange wallets accept it. So, if you are investing in Bitcoins you won’t have to worry much as most wallets accept it.
Fund the Account
After the account creation and wallet have been assigned to you, the next step is funding the wallet.That’s when you buy any of the coins of your choice, after choosing from the coins your wallet accepts. Since it’s your money, you can go to any length in buying any amount of coins. Just as I said in my last article of cryptocurrencies titled; Cryptocurrencies – Digital Wealth in a Flip, there is no minimum amount of coins you can buy into your wallet and there is no maximum amount of coins you can as well buy into your wallet. You can buy as low as $10 and you can buy as high as $500,000.
You can buy coins online from the site you created your account with. Some of the exchange sites trade cryptocurrencies, so if you created an account with an exchange site that trades cryptocurrencies, you can buy and sell your coins from the same site, but if you created an account with an exchange site that doesn’t buy and sell, you will have to create another exchange wallet with a site you can buy coins from and then send it into your wallet. Also, you can buy using the bitcoin ATM.
Bitcoin ATM is a machine where you can transact cryptocurrencies on, so you will have to use Google Maps to find out if there is any Bitcoin ATM in your area. While buying coins into your wallet, your wallet address is all you need to send in the coins into your wallet. Wallet addresses are usually long letters and are usually a mixture of alphabets and numbers. Utmost care should be taken while copying this address because if there is any mistake in the letters or wrong address was copied you might end funding another person’s wallet. Alternatively, you could do it by scanning your wallet barcode.
Good luck in your risks.