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How to Invest in Cryptocurrency? Best Tips & Steps To Follow

How to Invest in Cryptocurrency

Nowadays,  one of the most asked questions is how to invest in Bitcoin? How to invest in cryptocurrency?. We are talking about cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Ripple, etc. And through this article, we enjoy explaining how to invest in Bitcoin and any cryptocurrency you want. We want to provide a complete and comprehensive guide so that you fully understand this field and start making your investments in crypto and earn money.

Is investing in cryptocurrency worth it?

The first question you may ask, dear reader, is whether investing in bitcoin or cryptocurrencies is worth it. All types of investments in cryptocurrency today are intelligent investments, whether they are profitable or not profitable investments for you currently. That is because the coming decades and years suggest a significant increase in cryptocurrency prices on the horizon. Imagine that you invest 10 dollars today in Ripple currency, for example, whose price is $0.71. But what if I told you that in the year 2030, its price might be $300, for example, or $400. Can you imagine your 10 dollars turning into hundreds of dollars! So, in answer to the question of this paragraph, investing in cryptocurrency is worth it?, especially for those that have a big bet in the future ( We presented to you in this article: Best Cryptocurrency to Invest in 2022 ).

What is Cryptocurrency investment?

Before we go further on this topic, we have to explain the crypto investment process. The idea is: Convert Fiat money (dollars, euros, etc.) into digital currency at a low price (e.g. Bitcoin), then when the digital currency price rises to a specific level compared to the original Fiat currency, Convert this digital currency into Fiat currency again.

As an example, suppose I have $100 that I want to invest, so,  I bought $100 in Bitcoin on February 2 (Bitcoin price was $ 36.859), and a weak later, the Bitcoin price increased by 17%, Technically I have earned $117, with a net profit of $17. Then I transfer my Bitcoin to Fiat coin again. The $100 turns into $117. Briefly, this is investing in cryptocurrency.

What is Cryptocurrency trading?

Many confuse investing with trading. Trading means dealing a pair of currencies in exchange for profit on the conversion. The two currencies can be Crypto / Fiat (eg BTC / USD - Bitcoin / Dollar), or Crypto / Crypto (e.g. BTC / ETH - Bitcoin / Ethereum). 

And if it turns into Fiat / Fiat (e.g. EUR / USD - Euro / Dollar), then it falls within the field of Forex, to which we will dedicate articles later.

You can trade in two cryptocurrencies, but it is not an investment, as it is short-term. For example, you can convert Bitcoin to Ethereum or vice versa, then wait a few days or even hours, and get your money back in the original cryptocurrency, with an addition for the transfer difference (in case the second currency price goes up, of course). 

Check this article explaining better crypto trading.

How to Invest in Cryptocurrency?

To invest in Bitcoin or cryptocurrencies, first, you need to get cryptocurrency. There are two ways to get Cryptocurrency: Mining it or Buying it from a mediator. This mediator can be a person (Here, you need a digital wallet). You can find a trusted person who sells crypto or a specialist in the field and exchange Dollars for Bitcoins, send them your wallet address, and access Bitcoins or cryptocurrencies within it. We advise you to use reliable and global platforms to buy cryptocurrency. Among these platforms, we suggest you:

• Binance: is among the best platforms currently and the number one for investing in Cryptocurrencies. Binance guarantees you high-level security technologies with the features of 2FA (Two-factor authentication). It also puts in your hands a complete map to monitor all your cryptocurrency prices in one platform. Also, even better, Binance allows you to buy cryptocurrency using a bank card. You can also convert between two cryptocurrencies (e.g. from Bitcoin to Ethereum). And it is possible to trade Crypto through Binance because it includes a complete panel for buying and selling cryptocurrencies. We highly recommend Binance to invest in Crypto.

• Etoro: many people do not like the Etoro platform, and they think that it is a scam, and this is due to some people who promote it as profitable when they are losing. In general, Etoro allows you to deposit funds and purchase various investment resources, including companies shares, Fiat coins, Cryptocurrencies, Commodities (such as gold, oil, etc.). If you want to invest in crypto, the Etoro platform is also good, allowing you to convert your money into digital currencies and get a good profit from it. The problem with the Etoro platform is that it has recently started accepting only an initial deposit of $1,000, which means that if you want to start with it, you must deposit at least $1,000. While the Binance platform, for example, starts at $15.

• Coinbase: you can use Coinbase to invest in cryptocurrency by purchasing it through the platform, storing it, and monitoring its rise. The advantage of Coinbase is that it offers hundreds of cryptocurrencies and provides you with a package of articles that help you choose the best and optimal coin for you. The Coinbase platform is the best choice for total beginners in dealing with cryptocurrencies, but it does not offer features that allow you to trade cryptocurrencies.

• Kraken: if there is a real Binance competitor, it would be Kraken. The Kraken platform allows you to buy bitcoin and other digital currencies with a bank card. Then you will be able to store your cryptocurrencies and watch their price rise, or you can start trading them by converting the currency pair with each other and profit from the price difference (as we indicated in the Trading paragraph). The platform has a simple interface and is suitable for beginners in the crypto world.

After selecting your suitable platform for crypto investment, you need to choose what cryptocurrency you want to buy. Of course, you should buy currencies at a low price and wait for price increment to profit from them. At any point, if you use the above platforms (except Coinbase), you can convert your cryptocurrency back to dollars or your local currency by selling them. Generally, the idea is to buy, for example, $50 Bitcoin at a specific time, then it will rise, say, for example, it will become $100 Bitcoin, you can sell that Bitcoin through the platform and then withdraw $100 with a net profit of $50. That is the basic principle of investing.

Finally

In conclusion, we suggest that you follow continuous articles about cryptocurrency through various sites and even videos on YouTube because every minute it updates, and you need experience and deep knowledge before starting. We will help you with the necessary information, but it is not enough, and you must do some research and explorations.