The first and foremost existence of cryptocurrency dates back to the year 2009 when Bitcoin made its adhered impression. Today, in just a decade crypto market has surged to the greatest height and cryptocurrencies have emerged as a world-class investment asset.
Despite the absence of firm regulatory support from governments, cryptocurrencies have proved their worth over time. The growing probability of receiving handsome returns from cryptocurrencies has propelled investors to make cryptos part of their investment portfolio.
At the same time, what cannot be neglected is the significant risk factors attached to the best cryptocurrency to invest in 2021. Ideally, there is no subtle way out to eliminate risk in the investment industry yet a little caution does a lot to mitigate the same.
Key consideration while planning crypto-investment
Before you start investing and trading in cryptocurrency make sure to consider the following daily cryptocurrency trading tips as these will define your overall experience with the crypto world.
1 Make sure to research thoroughly for all available cryptocurrencies and slightly understand the functioning of blockchain technology.
2 Always verify the chosen crypto exchanges and cryptocurrencies to avoid being trapped by scammers and fraudsters in the ecosystem.
3 It is advisable to understand the power of patience while dealing in the volatile crypto market which is subjected to immense fluctuations.
4 Since a crypto trading account is a must-have element, therefore try to avoid using regular email IDs for this purpose. It is safer to create the new one for all crypto trades and investments to avoid the risk of a data breach.
5 The crypto norms vary for each nation across the world so do not forget to read all the taxation aspects of cryptocurrency in the desired province.
Steps to Safely Invest in Cryptocurrency
It is smart to begin investing with a smaller amount (5% -10% of income) to understand the market pattern and volatile nature of the cryptocurrency. So, let’s understand how to safely invest in cryptocurrency today to witness a healthy tomorrow
Choose the Right Crypto Exchange
It is the most crucial aspect of investing in cryptocurrency because this is where the journey begins. Crypto exchanges are platforms through which cryptocurrencies are traded.
Thus, it is always better to choose the widely accepted crypto exchanges like Wazir, Uno coin, CoinDCX, Coin Switch Kuber to initial the safe crypto investment. Unlike stock exchanges, most crypto exchanges work round the clock.
Creating a Crypto Trading Account
After choosing the right crypto exchange the next step calls for registering with the exchange and verifying the credentials. The process is largely similar to bank account opening formalities.
As a result, the process involves submitting identity proof, address proof, photo identity, etc., and linking the bank accounts to the trading account.
Funding the Trading Account
After opening a trading account it is necessary to transfer some funds (money) to the account to initiate trading. In some cases, there is a pre-defined waiting time between the account opening date to the first digital coin purchase.
The fact varies for each crypto exchange depending on their platform policies but makes sure to transfer funds from bank accounts to the crypto trading wallet to avoid further delay.
Start Trading and Investing in Cryptocurrencies
Following the account creation and money transfer, the person can now decide which digital coins to invest in. Some of the most widely accepted cryptocurrencies besides Bitcoin are Ethereum, Binance Coin, Cardano, XRP, Dogecoin, Tether, etc. This crucial decision shall be taken based on proper market research and patter study of each coin.
Maintaining the crypto portfolio by storing cryptocurrencies
This is the most crucial step after purchasing digital currencies. Since no crypto exchange is backed by any formal institution, policy building, or insurance support, therefore it becomes essential to store the digital coins with strong codes using the security feature of the platform. Ideally, understanding the security norms shall be the prime consideration while choosing the crypto exchange.
The invasion of cryptocurrencies in the investment ecosystem has paved way for the development of several opinions and experiences at the same time. These varying perceptions have also contributed immensely to growing speculations.
Therefore it is advisable to rely largely on self–conducted research and study or consult the subject matter expert but avoid being a part of the rat race. Thus, success in the crypto world is all about developing profound strategies.