Cryptocurrency has been on fire for the last few years, and many people are looking for ways to profit from crypto or join the crypto community. But one of the biggest challenges for newcomers is not getting caught up in the hype. Investing in cryptocurrency is the easiest and fastest way to become a part of the crypto world. And a lot of nocoiners are inspired by stories of Shiba Inu that has seen over 44,000,000% return in 2023, and other cryptocurrencies that showed astounding performance in the short term. However, investors should keep in mind that cryptocurrencies are volatile assets, and past performance is not guaranteed further growth.
If you think about joining the crypto market, then it’s important to do your own research before you hand over any funds into it. Here are some things to explore for the start to make well-informed decisions before you invest.
Consider why you want to join the crypto world
“Why are you doing it?” is the first and one of the most fundamental questions to ask yourself before taking any action in the crypto industry. Are you interested only because of the current crypto boom? Do you have a more compelling reason to invest in one or several digital assets? Answering these questions should ensure you that becoming a part of the crypto world is what you really want.
Of course, different investors have various reasons to buy crypto. You may invest in crypto to diversify your existing portfolio and hedge your risks or you see it as a store of value that can provide you with earnings in the long term. As you expand your knowledge about crypto space, you will find more options to earn with crypto, and it may provide you more sense to stick with crypto.
Understand the basics of crypto
It’s essential to develop some knowledge of how the cryptocurrency world works before diving into it. The crypto market is full of specific terms and services which can be difficult to understand for a beginner. So take your time to learn about different cryptocurrencies and crypto-related services to find the one or several ones that suit you most.
There are thousands of cryptocurrencies available in the market, but you can start with some big names like Bitcoin and Ethereum. When you find out about the basics of these cryptocurrencies and what brings them value, it should be easier to understand the purpose of other cryptocurrencies and spot main competitors.
Besides, it’s worth exploring blockchain technology and how it works. It is an important aspect of the crypto world that could help you understand how different situations affect the network and how transactions are processed within the network. It is not necessary to learn all the details of a blockchain network operation, especially if you are not a tech-savvy person or don’t have a coding background. But the basics should be enough to avoid common mistakes and get answers to a lot of questions about transactions.
Once you identify the project that seems promising to you, discover the main purpose of its cryptocurrency and what utility it brings to users. If you find the idea of this project similar to some other cryptocurrencies, then compare how long they are on the market and what has been done for this time. With a better understanding of cryptocurrencies, it should let you determine whether a project is worthwhile to support or not.
Join crypto community
The crypto world is a very trendy space where narrative and market attitudes may change drastically. The main reason for that is there is an active community of crypto enthusiasts who discuss crypto projects all the time and react to various events and updates.
Becoming a part of the crypto community should help you find out about the buzz going on with the project or the entire market. Reddit, Twitter, and Telegram are central hubs to find out about the project updates and discuss with other users.
Additionally to discussions and news, you can also join the crypto community to expand your knowledge about cryptocurrencies. For educational purposes, you can use Medium, where developers and active users share their insight.
Get started with crypto exchange
If you want to put your knowledge into practice after diligent research, then the next step is to select the time and place to buy cryptocurrency. A recent Bakkt survey showed that 24% of respondents don’t know where to start when it comes to buying cryptocurrency. Although there are a lot of places where you can buy crypto, it shouldn’t be so challenging to choose an appropriate one.
One of the most common places to buy crypto is a crypto exchange. If you have determined one or more projects in which to invest, then you need to find a crypto exchange that supports these cryptocurrencies in your country. It is also important to make sure that a crypto exchange is available in your country and supports a payment option that you want to use for the purchase.
Most crypto exchanges ask for similar information for registration and verification. So finishing the AML/KYC process at least once should give you a general understanding of what you need to join a crypto exchange. In most cases, crypto exchanges provide step-by-step instructions about purchases using different payment options or cryptocurrencies. For example, if you want to buy LINK, then you may check a guide on how to buy Chainlink coin using CEX.IO exchange or any other exchange you selected.
Regardless of your approach to investing in crypto, don’t forget about risk management. Cryptocurrencies are volatile assets, and their price may see a tremendous growth or deep correction at any minute, so try to invest only what you afford to lose or not to use for a while.