This text is written for information purposes only and never constitutes a call to action. All financial transactions carried out by you are made at your own risk. The Guarda editorial staff reminds you of the riskiness of all kinds of speculation on all kinds of financial markets.
How do I invest in cryptocurrency?
Cryptocurrency is a digital currency secured by cryptography. In recent years, it has become popular and more people want to invest in crypto.
If you do not have much knowledge of the way crypto works, that is ok. This article will explain how to invest in cryptocurrency for beginners.
Can You Make Money Investing in Cryptocurrency
Yes, you can make money investing in crypto. The downside is that you could also lose funds due to the high volatility of the crypto market. The best way to invest in cryptocurrencies is to always remember that crypto is risky like any other investment. Also, do as much research as you possibly can.
How to Start Investing in Cryptocurrency?
To start investing in crypto, you need to know the cryptocurrency investing strategy.
With Great Reward Comes Risks. Suppose you love the stories about people who gained so much money overnight with crypto. Keep in mind that you may lose money in your quest to find the next big thing. It is important to note that for every person who gains over 100%, hundreds of people have lost, sold too soon, or not seen much return.
Buy and Hold. This is when traders buy coins and hold them regardless of the market’s price movement. You could lose money, but it is suitable for long-term investment.
Invest What You Are Willing to Lose. Given the uncertainty and volatility, you should not invest an amount that can ruin you. Limit your investment to the point where you will be fine if it drops. If you are worried about the drop, you should either lower your investment or not invest at all.
Don’t Invest Blindly. Many traders invest in a particular coin because of Fear and Greed or success stories about how a coin yields high returns. Do your research before investing in any cryptocurrency.
Take Cybersecurity Seriously. It is important to keep your funds safe. So, security is paramount. There are different ways to secure your crypto.
- Set a strong password and download the backup. Make sure you keep it safe.
- Change your password regularly.
- Don’t give anyone access to your wallet.
- Opt for a hot or cold wallet for maximum security.
How to Buy New Cryptocurrency
Are you looking for where to buy cryptocurrencies or ways to invest in them?
Choose a Reputable Platform to Buy from
There are different platforms to purchase cryptocurrencies. You can buy them on Guarda. All you have to do is to create a wallet. You can buy coins with Visa/Mastercard and SEPA transfers.
Choose and Research Cryptocurrency
Choose the cryptocurrency you want to buy and do extensive research on it. For example, you can join the crypto’s online community or look up the developer’s reputation in the crypto market. Also, check the features of the coins and how they work to see if it is suitable for you.
Place a buy order for the cryptocurrency of your choice
To place and finalize a buy order for one or more cryptocurrencies on Guarda, follow the steps outlined below:
- Create a wallet if you are a new user and if you are an existing user, log in to your account. If you are a new user, create a wallet or import an existing one. The wallet will be added to your list.
- To buy coins, you just need to click on any wallet you have added to the list.
- Choose the currency you are paying, input the amount you want to spend, and choose the coin you wish to buy. Next, you will see the number of coins you can purchase for that amount.
- Click on ‘Buy.’ You will be directed to the page for payment. Choose your preferred payment option—Visa/Mastercard or SEPA. Continue and add your card information; you can choose to save the card for future purchases.
- Click ‘Next.’ Verify that you are the one. After it has been approved, you are set. The coins will be added to your account. You can watch the market movement on the chart provided on your screen.
Store Your Crypto in a Wallet
To secure your funds, store them in a crypto wallet. A non-custodial wallet is preferable since you have full control of your funds.
There are various types of non-custodial wallets available to store your crypto:
- Cold wallets can be accessed without the use of the internet. They come in different forms, hardware wallets (Ledger and Trezor) and paper wallets.
- Hot Wallets can be accessed with the use of the internet. They come in different forms, desktop, online wallet, and mobile wallets. Guarda Wallet is an example of a hot storage. You can also integrate your hardware wallet like Ledger with Guarda.
Guarda neither store your crypto, nor does it have access to your private keys or any of your data. It only interacts as an interface that allows you to make transactions on the blockchain.
Remember that crypto has not been around for long; it is subject to uncertainty. Therefore, you should not invest based on market emotions but only after extensively researching the market and understanding its depth. Cryptocurrency investment is risky. So, make wise investments.