Investing in Cryptocurrencies...

Greetings to all and sundry here on this noble platform, I am here once again to write and share a finance-related article. Today I would like to look at some basic topics related to cryptocurrencies and that is Investing in cryptocurrencies. When we talk about investing in cryptocurrencies I know most of you understand it to be basically buying and selling crypto assets in order to earn profits.

Before I would explain how and what to invest in, I would like us to have a brief explanation of what cryptocurrency is. As we all know,4 basically cryptocurrency is a digital asset that is governed and secured by blockchain technology. Investing in cryptocurrencies has different forms or ways of doing such and in this post I would list and explain some of them here.

Basically investing in cryptocurrencies is simply through buying and selling of crypto assets through either broker-dealers or crypto exchange platforms such as Binance, Huobi, Poloniex, KuKoin, etc. But then before investing into crypto assets, make sure you use capital or money that you can afford to lose this is because there are risks involved in cryptos so one needs to be cautious when investing in them. Let’s look at some of the ways or types of investing in cryptocurrencies. The following includes methods or types of investing in cryptocurrency.

Investing in cryptocurrency companies: individuals can invest in cryptocurrencies through crypto companies and they can do so by either a partial or total focus on cryptocurrency. People can invest in cryptocurrency mining companies, and also companies that support cryptocurrencies as well.

Investing in cryptocurrency focused-funds: this is where individuals invest in cryptocurrency-focused funds instead of investing in companies and the like. Individuals can decide to select their choice of exchange-traded funds (ETFs) platforms and invest in them.

Buying cryptocurrencies directly: with this, investors purchase crypto assets directly into their wallets and then hold them to earn profits as the market goes in their favor. They are a lot of cryptocurrencies that are available to purchase of which some are Bitcoin, Ethereum, Ripple, Cardano, Solana, Hive, Matic, and many more. Also, penny cryptocurrencies are available for purchase as well, and they really good to add to one’s portfolio as it helps to balance your portfolio. It is also good to diversify your investments so that in case of any future volatility, it can help you in balancing the assets in your portfolio.

Investing in cryptocurrencies through mining or validation: one can directly invest in cryptocurrencies by mining the assets or become a validator of such cryptocurrency. Once they validate a block they earn rewards which are in the form of crypto assets and these cryptos can either be sold on an exchange platform or can either be held as an investment for the future.

Lastly, one method of investing in cryptocurrencies is through cryptocurrency Roth IRA: one can also invest in cryptocurrencies through cryptocurrency Roth IRA where the individual can save the tax advantages that are granted by an individual retirement account (IRA). Investing through that can also help investors to earn some crypto assets by holding and saving for future purposes.

In order to purchase and invest directly into cryptocurrencies, there are certain procedures or processes that must be followed and I would be listing them here in this post. They include the following:

Select the type of cryptocurrency exchange platform that you wish to invest in. For this, you need to do your own research and know which one is best and worth investing in. You need to consider the popularity, number of users, and also how long it has been in use before considering it for your investment.

Create and establish an account with the cryptocurrency exchange platform that you identified. By creating an account on the cryptocurrency exchange platform, you can gain full access to the platform including the trading futures on the platform. You need to sign up or register a new account and provider your details for verification so as to complete your registration process.

Funding your account with fiat money to start trading: after completing your registration, the next thing is to fund your account with some fiat money that you wish to invest into the cryptocurrencies. You must make sure to remember that, you need to invest with money that you can afford to lose.

Make your research and decide which cryptocurrency you wish to buy. With this step, I encourage you DYOR in detail in order not to invest in scam crypto assets as there are a lot of them in the crypto market space.

Placing a buy order for the crypto asset of your choice: after making your deep research and finding out which cryptocurrency you want to purchase, you then go ahead by following the buy order of the exchange platform and then execute the buy of the cryptocurrency.

1. Store your cryptocurrency in a wallet: after a successful purchase of the cryptocurrency that you wished to buy, you then go ahead and store it in a digital wallet where you are the only person that is responsible for having access to it.

These are the simple steps that as an investor you should follow in order to make a purchase of any cryptocurrency asset. It is advised that, as an investor you regularly check and track your portfolio in order to ensure that you don’t lose all of your investment. Also, it is advisable not to be greedy, and anytime you see that you have earned some appreciable profit, you shouldn’t hesitate to take it as the market is very volatile and anything that can happen isn’t the twinkle of an eye.

Thank you all for your time and attention to reading my post.

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