So, you probably heard of people going gaga about cryptocurrency and getting rich, and you feel like trying your luck. But you are afraid to lose money. It is quite a natural and good thing. Cryptocurrency sure provides its investor’s pool of opportunity for handsome returns. But if one trades without caution, there’s the likelihood of incurring losses.
So being afraid is good because only then you will stay careful. It will help if you are cautious about various things to prevent risks. First, you need to choose a reputable cryptocurrency exchange to trade digital coins securely. Secondly, you need to be careful about selecting a crypto coin to invest in. For that, you have to run thorough research about the coin’s background, owner, mining process, and accessibility in your country. Lastly, stay current on crypto regulations to make wise decisions.
After exercising the above things, you are set to invest in crypto. Here’s a quick guide to help you start.
Top Tips for Investing in Cryptocurrency
Cryptocurrency is a decentralized digital asset. It is transacted on a blockchain system and protected by cryptography that ensures the details of the transaction stay between the buyers and sellers. It is safe to invest in cryptocurrency. But to start, you should first create a trading account.
Select a Trading Platform
To be able to trade and invest in crypto, you will have to create a trading account with a reliable platform like OKX. The platform you choose should have features that allow you to learn about trading, digital assets, and market conditions. It should also have a feature to let you decide whether to do manual trade or auto trade.
The platform buys and sells digital assets in favorable conditions in the auto trade option. The investor opting for the auto trade option can set limits to prevent losses. They do not have to sit in front of the computer to complete a trade.
Investors opting for the manual trade option, on the other hand, take all the decisions from the buying price to the selling price. They have to carry out each trade manually and may have to spend the whole day watching the marketing for favorable conditions.
Prerequisites for Trading Account
To open a trading account with the preferred platform, you must provide bank information and identity proof and make a minimum deposit. You will have to complete KYC by providing a PAN card number, contact number, a photograph, and address proof.
The platform will verify the information by sending you a code on the provided phone number. It will also check bank details by asking you to make a deposit. You may have to make a mandatory minimum deposit to start trading in the digital asset.
Decide what you want to do – trade or invest. You can make a strategy before buying the digital coins based on your choice. If you choose to trade, set a budget for how much you are willing to spend on buying a digital asset. You should also have a plan to sell it.
For instance, if you choose to buy ADA Cardano, you can decide the amount to buy, like $0.92, and the selling price, like $0.98. Once the coin reaches its value, you can choose to sell it off and repurchase it when the price is down.
Buy and Sell Digital Assets
After making the minimum deposit, you will be able to buy and sell the digital asset. But before you jump to investing, it is highly advisable to watch the market, read the expert opinion, and shortlist crypto coins. There are thousands of coins to invest in, but not all may serve the purpose.
If you are planning to invest long-term, choose a stable coin that has a chance of rising in the future. You can learn about the preferred digital currency by reading its stats at your chosen trading platform. You can find the details of when the coin plunged and rose and how stable it remained.
Let us assume you plan to invest in crypto. You should know how long you can wait or put the coin on hold. The crypto you decide to hold will appear in your wallet, and will stay there until you choose to sell. The information of how much crypto you have stored remains with you. You should never disclose the transaction to a third party for safety.
As a new investor, you should always keep your eyes open for opportunities and understand market trends. At times, certain digital assets would increase, and some may fall. Never lose heart and hope when the market is down.
The Crypto market is volatile, and it is evident for the price to fluctuate. You can always seek the guidance of an expert to understand market trends and invest accordingly. All the best! Safe trading!