How to Start Investing in Cryptocurrency? | Notum

Intro

Once you more or less make friends with the crypto basics, you probably want to learn about investing and earning in detail, as digital currency is getting more and more influential and popular among people who care about their future. 

It seems that the best way to guide you through is to explain and describe the whole process using a step-by-step approach. Whatever you do, the best strategy is to make a plan and think of coherent actions that lead you to the finish line. 

How and Where to Start?

1. Dream big, but don’t forget to do a research

Just imagine what could happen if you invested in Bitcoin and Ethereum at the moment when they appeared on the market and promised to be beneficial — obviously, you could have millions now. Such thoughts are speculative, but it’s essential to let yourself dream from time to time, as all great ideas and deeds started somewhere. 

Apart from dreaming, there are exact cases and stats and lots of interesting information on the Net, so never neglect to do research. Find out more about a range of possible cryptos, exchanges, wallets, special communities where people share their experiences, and websites with crypto news worldwide. It will help you to feel confident and have an overall picture of crypto reality. 

2. Don’t be in a rush, take it easy 

The previous step makes us think thoroughly, as they say, — “Better safe than sorry”. Start your investments from 2-3%, as it’s proposed by some experts, and have a look at how it will go, so once everything is great, you can increase the amount, but if not — you don’t lose a lot and will gain a new experience. 

3. Find the best place to start, that’s an absolute “must”

The point is that’s the place where you start to buy and sell your crypto, so pick the best crypto exchange platform that appeals to you and has positive feedbacks and/or is listed in the top charts. Have a look at such crucial points as:

• a transaction fee structure;
• supported tokens and coins;
• purchasing methods;
• legitimacy and security;
• friendly and neat UI.

Once you more or less make friends with the crypto basics, you probably want to learn about investing and earning in detail, as digital currency is getting more and more influential and popular among people who care about their future. 

It seems that the best way to guide you through is to explain and describe the whole process using a step-by-step approach. Whatever you do, the best strategy is to make a plan and think of coherent actions that lead you to the finish line. 

4. Time to choose a wallet 

First of all, you need to get a crypto wallet to store your crypto — it could be a hot or a cold one. The absolute con of hot wallets is that they are faster in transactions and much easier to manage, while cold ones are super secure and almost impossible to hack. Find out more about those types in our easy-to-read guide.

5. Make a plan, choose a strategy and manage your crypto

There are various strategies once we are talking about funds and markets. You have to choose a path you want to follow, whether it will be an Elliott Wave Theory, famous traders, economists and analysts you read daily, day trading, scalping, swing trading, or the inner instincts that help you to make decisions, or even all those listed things altogether. 

What Are Cryptocurrencies? 

There are so many different cryptos that it’s really easy to get puzzled, but there is such a great thing as a market capitalization or a “market cap”, so you can watch the most beneficial cryptos and have all the information about their relevant status. Always keep updated and check out the latest stats, for example, here — https://coinmarketcap.com/. 

According to the latest market cap information, these cryptos are on edge now:

• Bitcoin (BTC)

Market cap: over $1.17 trillion

Bitcoin is the first active crypto, where it started in 2009. It runs on the blockchain or a ledger, Bitcoin became popular and built a strong, credible reputation. Many people 

Five years ago, Bitcoin's price was $500, but the recent price is over $62,000, so the growth is evident. 

• Ethereum (ETC)

Market cap: over $ 520 billion

This one is a program developer’s favorite, as using an Ethereum network, you can create so-called dApps and make transactions with “smart contracts”. It jumped in its price hugely — from 11$ to over 4, 400 $. 

• Binance Coin (BNB)

Market cap: over $ 88 billion

It’s a native coin of the Binance, a large and prominent crypto exchange, and with BNB, you can trade, pay, or even book your trips and travel arrangements. You can also trade and exchange it for other cryptocurrencies. 

• Tether (USDT)

Market cap: over $ 70 billion

It’s a popular stablecoin pegged to fiat money such as the U.S. dollar, so the price more or less equals to the dollar. It’s the best option for those who are skeptical about crypto’s volatility. 

• Cardano (ADA)

Market cap: over $ 66 billion

Cardano blockchain uses a proof-of-stake validation that saves time and is considered to be environmentally friendly. It also has a smart contract system like Ethereum and allows you to make dApps. The platform has its own coin called ADA. 

• Solana (SOL)

Market cap: over $ 60 billion

This platform mixes two algorithms — proof-of-stake and proof-of-history that make your transactions faster and securer. They have their native coin SOL, which powers the platform. The fees are really low, and the level of scalability is high. 

• XPR (XPR)

Market cap: over $ 50 billion

It’s a native coin of the XPR ledger, developed by Ripple Labs. This currency is famous for the possibility of transferring money worldwide, and it reminds SWIFT system. The network allows converting a sender’s currency into XPR, and then a recipient can convert that money into any necessary fiat currency. The system is already used by banks and organizations that want to make international payments. 

• Polkadot (DOT)

Market cap: over $ 43 billion

Polkadot connects different blockchains, so they can collaborate, allowing the cross-chain transfer of any data or asset types, not only tokens. The platform builds a bridge between various networks. 

• Shiba Inu (SHIB)

Market cap: over $ 41 billion

In a crypto world, there is such a thing as a meme coin, a coin that started as a joke, but sometimes a joke becomes something bigger; that’s exactly what happened to a SHIB. It runs on the Ethereum platform and increased rapidly, so many investors became interested in it. 

• Dogecoin (DOGE)          

Market cap: over $ 38 billion

Another meme coin became more prominent than it was supposed to be thanks to many celebrities and trend-setters. The interesting thing about a DOGE is that there is no limit to creating those coins. 

Closing Thoughts

Investing is always about taking risks and keeping in mind that making money is not that easy as some people try to show that. Before going deeper with your funds, do research, check the best websites on top cryptocurrencies, listen to influencers in the crypto industry, use special investing tools, but always remember that you are the only person who is in charge of your funds and investing decisions.