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Things New Crypto Investors Should Know

How to Invest in Cryptocurrency Directly

Alternative Ways to Invest in Cryptocurrency

Is there a Crypto Investors Network?

FAQ on How to Invest in Crypto

How to Invest in Cryptocurrency 2022: A Beginners Guide

Cryptocurrencies are all the rage right now, and for a good reason. A cryptocurrency is a digital or virtual currency that can be secured by cryptography. This ensures nearly impossible counterfeiting practices - making it an attractive investment opportunity! They either work on blockchain technology or use smart contracts.

There is a lot of debate on whether cryptocurrency is a good investment. Cryptocurrencies offer a number of advantages including cheaper and faster money transfers.

Some key features of cryptocurrency are:

  • They are anonymous: To ensure the safety and security of transactions, they are not tied to any person or company's identity and hence completely anonymous. 
  • They aren't governed or regulated: The lack of government regulation and control is a major advantage for cryptocurrency users. There is no ruling body for crypto. 
  • They are super secure: Cryptocurrency is a digital currency that uses cryptography to secure transactions. Virtual wallets can be stored with private keys, which means only you have access. 
  • They are decentralized: When it comes to cryptocurrency, no central authority can control the flow of transactions or prices. 
  • They follow nontraditional financial systems: Virtual transactions are immediate with no need for waiting periods. It makes them very convenient, unlike traditional banks. 
  • They are irreversible: Due to the lack of institutional supervision in markets, all transactions are irreversible.

Key Takeaways

  • Cryptocurrencies have potential but are volatile assets.
  • Because investing in cryptocurrency is risky, investors must be informed before putting their money on the line.
  • Careful research and long-term investing can minimize the risk of loss.
  • Investors should carefully select coins they want to invest in, an exchange platform they wish to use, and a wallet to keep assets safe.

Things New Crypto Investors Should Know

There are several things new crypto investors should consider before investing in cryptocurrency. Let’s explore some factors more in detail: 


Always research the market

Digital currencies are a hot new investment option for those who want to get in on the ground floor. So look beyond Bitcoin and Ethereum - every coin has its unique features worth exploring! It's essential that your technical know-how and the general understanding of how this space works be top-notch.

The more familiar with blockchain technology you become, the easier investing will seem. Learning about particular coins or tokens by reading blockchain projects and white papers.

If you're not a computer science or coding native, some aspects of blockchain technology will likely be challenging for you.

To be an informed investor, it is crucial to research how cryptocurrency tokens use blockchain technology. Learn what innovations they provide that set them apart from other investments.

It will be easy to determine an investment's potential if you understand cryptocurrencies inside out.


Don't let "noisy" cryptos confuse you

Not all coins are created equal. Do your due diligence and research the coin inside out. See what kind of project it is backing what the technology is like. Just because a coin makes waves doesn't mean it will last forever.

When it comes to investing, the key thing is research. Do your independent study and stay on top of what's happening in an industry. Make informed decisions about where or how much money should be put into a new crypto token versus another.


Pay attention to the exchange platform.

The important things to look at when choosing a cryptocurrency exchange are:

  • Supported currencies
  • Pricing policies
  • Procedures for buying or selling cryptocurrencies
  • Sees structures
  • Customer service responsiveness.
  • Security protocols

It's also worth checking out how much flexibility you have regarding withdrawal options. How strong security features are, and what if you have access to a customer support team 24/7 via live chat or emails.


Pay attention to crypto taxes

The decision to invest in cryptocurrency is not easy, and its taxes can be very complicated too. Taxpayers should be aware of their tax obligations on crypto sales. Conversions and payments are also taxed. When filing taxes, don't get caught off guard; make sure you have everything covered.
 

Be ready for volatility

We all know that cryptocurrencies are volatile investments. Even if you're used to investing in the stock market, cryptocurrency portfolio is very different.

Due to their high levels of volatility, especially when compared with regular stocks, one has to take measured risks.

Investing for the long term is a great way to build your wealth and protect it from risks. When prices are low, you can afford to wait before investing to make sure they go up again.

Investors seeking the highest possible returns should research different cryptocurrency coins. It will help you build confidence during dips.


Be cautious and protect your crypto investments

Cryptocurrency exchanges are becoming more popular, but they're not immune to attacks. Hackers have already taken millions of dollars worth of wallets on some platforms with malicious hacks. Always choose your exchange wisely and use trusted wallets.
 

How to Invest in Cryptocurrency Directly

If you want to invest in cryptocurrency directly, you can use a cryptocurrency exchange. Here's how to buy cryptocurrency through an exchange.
 

Step 1: Choose what you want to invest in

Choose the cryptocurrency to invest in. When it comes to cryptocurrency, there are many different options for you. Do not feel limited by just one or two choices - explore them all and see what works best! Research properly before deciding.


Step 2: Choose the platform

Choose a reputable and well-known exchange that offers a large selection. Make sure the exchange platform you want to use also supports the cryptocurrency you want to invest in.


Step 3: Create an account on a cryptocurrency exchange

When it comes to investing in cryptocurrency, the options are endless. Choose a reputable exchange with a large selection that supports your desired currency. Select an established beginner-friendly exchange to work with, like ATAIX


Step 4: Fund your account with fiat currency

Fund your account with USD or fiat of your choice before buying any crypto. It's important to know that this will help maintain the stability and security of both yourself and exchanges in general.


Step 5: Make an order to buy your cryptocurrency

To get started, place a buy order for your chosen cryptocurrency on one of the many exchanges available. Follow the steps required by that particular exchange – it's a pretty straightforward process.


Step 7: Have a wallet to keep your cryptocurrency for you

When you purchase cryptocurrency, the information needed to access your funds is held in a digital wallet. This wallet is hosted either by an exchange or an independent provider. Make sure you use a good, secure, and trusted wallet.

 

Alternative Ways to Invest in Cryptocurrency

There are other ways to invest in cryptocurrencies instead of just buying coins.
 

Option 1: Invest in cryptocurrency companies

You can invest partially or entirely in it by choosing from companies with mining hardware makers and traders. A few examples are Robinhood Markets Incorporated (HOOD) and PayPal Holdings Corporation PYPL.
 

Option 2: Invest in cryptocurrency-focused funds

You can decide to invest in a cryptocurrency fund focused on the crypto market, such as ETFs and trusts. Perfect for those who want direct exposure without making management decisions or oversight. You can invest in direct investments and derivative investment funds.


Option 3: Invest in a cryptocurrency IRA (an individual retirement account)

You can invest in cryptocurrency with a self-directed IRA. When you do so, your profits go directly towards the tax-free contribution of this retirement account. They will not be taxed when it's withdrawn or at any future date if left intact long enough for them to accrue more interest.

The IRS considers digital currencies such as Bitcoin property rather than cash


Option 4: Become a crypto miner or validator

When the price of Bitcoin was rising, it became more expensive and difficult to mine digital currencies. A new way people can participate in mining with less money is called a Mining Pool. It is a group that pools together their computing power. They share profits proportionally according to how much each device contributed.

 

Is there a Crypto Investors Network?

Crypto Investor Networks are research-based communities for blockchain technology and cryptocurrencies.

Its mission is to make cryptocurrency and blockchain technology as transparent as possible for all.

Cryptocurrency fans have active communities, forums, or groups for discussions.

Many experienced investors share their advice in such spaces. A few popular ones are:

  • Website Forum: Cryptocurrency Investor's Network, a London-based Cryptocurrency Investor's Network (CIN). It is a network to distribute valuable information among crypto investors.
  • Facebook Community Groups: Bitcoin - investors group, Cryptocurrency Bitcoin investment, Cryptocurrency Investing are few of the popular and very active Facebook Communities
  • Biggest Public Cryptocurrency Event: Crypto Investor Show is Europe's Largest Crypto & Blockchain Investors Network where people are invited to discuss blockchain projects and ICOs.


FAQ on How to Invest in Crypto

How do I become a crypto investor?

You can become a crypto investor by either buying coins or choosing alternative indirect methods. Such as mining, crypto funds, crypt companies, and more.


How do I invest in cryptocurrency?

Research and choose carefully the coin you'd want to buy. Buy the coin you want and transfer it to your wallet. Find a reputed exchange and have a trusted wallet at hand. Register on an exchange platform like ATAIX, and fund your account with fiat.


How much money do I need to invest in cryptocurrency?

It depends on how risk-averse you are. The consensus seems to be 10% to 40% of your investment capital. 10% to be very safe and 40% on the riskier side.


Can I invest in Bitcoin with $1?

Bitcoin can be broken down into 100 million Satoshis, and you can own a fraction of a bitcoin. According to e-cryptonews.com you should invest at least $50 to have any chance of profitability.

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