When it's bearish like this, you have to know how to invest in crypto safely. Now, VCGamers have summarized some important things for those of you who are still beginners to crypto investing in 2022.
Due to the exponential growth of the cryptocurrency market in recent years, more and more people are looking to invest in Bitcoin to potentially generate market-beating returns.
This article will cover crypto investing in Bitcoin for 2022 beginners, review the top trading platforms on the market, and highlight how you can invest in Bitcoin today with tight spreads.
Crypto Investment Ways For Beginners
Choose the Best Crypto Investment Wallet
First, you need to choose an exchange to buy from like choosing a broker for stocks. After choosing which exchange you want to start investing in crypto with, you will be able to create an account with them. There are many options open to crypto investment wallets. In Indonesia alone there are Indodax, Doors and Crypto Stores.
The choice if you want to invest crypto in Bitcoin is Binance. According to CoinMarketCap, Binance is the largest cryptocurrency exchange in the world, doing over $22.6bn in trading volume over the last 24 hours.
Binance stands apart from many of its competitors in the space thanks to its wide asset selection, as users can trade in over 500 crypto assets, including altcoins, ERC-20 tokens, and even crypto-crypto trading pairs.
Start Buying and Investing Crypto
This wallet makes it possible to buy crypto with a debit card. Usually you can choose between different cryptocurrencies, such as Bitcoin and Ethereum.
One coin may be worth thousands of dollars. However, most exchanges allow buying fractions of coins, which is much more affordable for novice investors. Just like stock brokers, the exchange will charge a fee for every transaction you make.
Store Cryptocurrency in Wallet
Once you buy a unit of crypto, it will be added to the wallet. Not a real wallet, of course, but a virtual wallet that you will receive when you open an account with an exchange. The wallet will store codes for all cryptocurrencies.
There are software wallets and hardware wallets. A software wallet is simply a software program that stores cryptocurrencies. You need it for active trading, and you will usually get it when you open an account on an exchange.
A hardware wallet is a physical device that stores cryptocurrencies. It looks like a USB drive, and is more secure than a software wallet, but it's not necessary unless you buy mostly crypto.
Crypto Investment With Good Fundamentals
Before investing in cryptocurrencies, it is important to know the types. There are many types of cryptocurrency systems that you can invest in. Bitcoin is arguably the grandfather of all crypto.
It has been around for more than 10 years and is the largest cryptocurrency system in the world, with a market cap of around $128 billion. Here are some other cryptocurrencies you can buy:
Bitcoin is a great starting place for any beginner. Every currency exchange supports Bitcoin, which means you will know what you are buying. Bitcoin is just a form of digital money. You can use it as a means to exchange currency and value, which gives it a competitive advantage.
ETH it is a cryptocurrency, but its main focus is on buying apps without having to pay an intermediary (in other words, bypassing the Apple Store).
This cryptocurrency is mainly used to store personal data. An alternative to Ethereum, more energy efficient and therefore cheaper.
It's easy to get in on the bandwagon just because someone says it's a worthy investment. However, you should do your own research. When investing in crypto, know that it has zero intrinsic value.
Instead, it represents ownership of digital assets. Its price is determined only by the public's perception of its value, so you must believe in the value of the cryptocurrency you choose to invest in.
How did you develop this belief? By doing your own research. Do the work by reading the white paper and gain an understanding of which cryptocurrencies may increase in value in the future before making any investment decisions.
Is Crypto a Good Investment?
You now have a pretty good understanding of cryptocurrency. Now you may be asking yourself, “Is cryptocurrency a good investment?”
Cryptocurrencies are high-risk investments because, as mentioned earlier, they are volatile assets.
Here's a possible scenario in cryptocurrency. Let's say you buy a few units of Bitcoin. When everyone started buying cryptocurrencies, the value of each unit of crypto increased sharply. But remember: crypto is a volatile asset, and its value can go down as fast as it goes up.
But it's hard to pinpoint the right time to sell your holdings. Timing the stock market is hard enough, but it's even harder to time a volatile market.
Crypto investments can drop drastically in value in just a few days or even hours. If you don't sell the units before demand cools, they can dip in value and result in heavy losses.