Starting to Invest in Crypto
Welcome to the exciting world of cryptocurrency! If you’re new to this, buying your first crypto might feel a bit daunting, but don’t worry—I’m here to walk you through it step-by-step. Follow this guide, and you’ll be a crypto buyer in no time.
Step 1: Understand What Cryptocurrency Is
Before you jump in, it’s important to understand what you’re dealing with. Cryptocurrencies are digital or virtual currencies that use cryptography for security. Unlike traditional currencies like the dollar or euro, cryptocurrencies are decentralized and typically operate on technology called blockchain.
Key Points:
- Digital and Decentralized:** Cryptocurrencies are not controlled by any central authority.
- Blockchain Technology:** This is the digital ledger that records all transactions.
- Examples:** Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC)
Why Invest in Cryptocurrency?
Cryptocurrency has the potential for high returns, but it also comes with significant risks. People invest in crypto for various reasons, including:
- Diversification:** Adding crypto to your investment portfolio.
- Innovation:** Supporting new technologies and financial systems.
- Potential for Growth:** High volatility can lead to significant gains.
That means that, if you know what you’re doing, and a bit of luck, you could find a cryptocoin that could 100, 1000, 10000x, and make you a millionaire over night.
Step 2: Choose a Cryptocurrency
There are thousands of cryptocurrencies out there, but for beginners, it’s often best to start with well-known ones like Bitcoin (BTC) or Ethereum (ETH). These have the most stability and resources available for newcomers.
You can also find valuable information about potentially good coins, best investment opportunities, and price predictions, along with detailed analysis and explanations on this website:
Everything is explained in easy-to-understand plain language, so even beginners can get a grip. Besides price predictions, cryptocurrency reviews, and analysis, Daily Money Tree also offers relevant news about what affects the crypto market.
Step 3: Pick a Cryptocurrency Exchange
To buy cryptocurrency, you’ll need to use an exchange. Think of an exchange like a digital marketplace where you can buy, sell, and trade cryptocurrencies. Here’s how to pick a good one:
- Reputation: Look for an exchange with good reviews and a solid track record.
- Fees: Check the transaction fees as they can vary.
- Security: Ensure the exchange has strong security measures in place.
Top Crypto Exchanges
- Binance/BinanceUS
Overview: Binance is a popular choice for its broad selection of cryptocurrencies and competitive fees.
Features: Low trading fees, a wide range of coins, and advanced trading features.
Considerations: Ensure it supports the cryptocurrencies you want to trade and that its fees align with your budget.
2. Coinbase
Overview: Coinbase is user-friendly and ideal for beginners.
Features: Easy-to-use interface, high liquidity, and strong security.
Considerations: Slightly higher fees compared to other exchanges.
3. Kraken
Overview: Known for its robust security features and diverse coin offerings.
Features: Advanced trading tools and a variety of cryptocurrencies.
Considerations: The interface may be more complex for beginners.
4. Gemini
Overview: Offers a secure platform with a focus on regulatory compliance.
Features: Good customer support and a strong emphasis on security.
Considerations: Fees may be higher compared to other platforms.
Key takeaways
- Fees: Look for exchanges with low fees to maximize your
investment. - Security: Choose platforms with strong security measures to
protect your assets. - User Experience: Pick an exchange that suits your level of
experience and ease of use.
Register on Binance
I have tried more than a dozen Crypto Exchanges, and still use 5 of them. However, I can say with certainty that the best crypto exchange (and with the most users globally) is Binance.
Binance, a titan in the cryptocurrency world, stands as the largest exchange globally by trading volume. Its extensive offerings include over 500 cryptocurrencies, innovative earning opportunities, and sophisticated trading tools, catering to a diverse spectrum of investors and traders. With nearly 190
million users spanning more than 180 countries, Binance’s immense popularity is evident.
You can register on Binance by clicking on the image below:
Pros of Using Binance
Wide Cryptocurrency Selection: Trade from a selection of over 500 cryptocurrencies.
Insurance Fund: A $US1 billion SAFU insurance fund enhances asset security.
Competitive Fees: Trade with fees starting as low as 0.1%.
Mobile App: Access both advanced and lite modes on iOS and Android.
Educational Resources: a comprehensive education centre.
Registration Step by Step Tutorial
Opening a Binance account is a straightforward process:
- Sign Up: Visit the Binance website and register with your email or phone number.
- Verification: Provide personal details and verify your identity with the required documents.
- Secure Your Account: Set up 2FA for added security.
- Deposit Funds: Choose your preferred deposit method to fund your account.
And to make everything simple and easy, here’s the official How to get started on Binance.com (New User Guide). Click on the image below:
And if you still need help, let’s make things even easier with this video tutorial:
Okay, now you have an account on a cryptocurrency exchange platform, and it’s time to talk about investing!
Step 4: Buy Cryptocurrency
This is the most important step.
It’s paramount that you choose the cryptos you’ll invest in very carefully, with a lot of research beforehand. There are a lot of mistakes that especially beginners make, but we’ll get into those later.
For now, let’s pretend you have identified a promising cryptocurrency, done your analysis and research, and are confident and ready to invest…
Before you can buy crypto, you’ll need to deposit money into your exchange account. This can usually be done through:
- Bank Transfer
- Credit/Debit Card
- Other Cryptocurrencies (if you already own some)
Buy Cryptocurrency
With your account funded, you’re ready to buy your chosen cryptocurrency:
- Go to the Buy/Sell Section: Locate the area of the exchange where you can make purchases.
- Select Your Cryptocurrency: Choose the coin you want to buy.
- Enter the Amount: Decide how much of the cryptocurrency you want to purchase. You can usually specify this in terms of the amount of money you want to spend or the number of coins you want to buy.
- Confirm Your Purchase: Review the details of your transaction and confirm it.
Step 5: Store your Cryptocurrency Safely
Once purchased, your cryptocurrency will be stored in your exchange account by default. However, for added security, consider transferring it to a private wallet. There are two main types:
- Hot Wallets: Online wallets connected to the internet, convenient for frequent trading.
- Cold Wallets: Offline wallets, such as hardware wallets, providing higher security for long-term storage.
Usually, crypto exchanges have their own “built-in” wallets, but you can find a lot of information online if you want to dwell deeper.
Step 6: How to Find the Best
Crypto to Invest in?
And now we have come to the most important step in crypto investing and trading.
In order for you to make money with crypto, you have to be able to find low-cap coins that have the potential to 10x, or even 100x.
Even though it’s tedious and meticulous work, finding a good low-cap cryptocurrency is a pretty straightforward process. There are certain steps that will allow anyone to deep dive into any crypto, and get a pretty good idea of the coin they’re analyzing.
Of course, if you’re looking for a cryptocurrency that will make you the most money, you have to focus on the low-cap coins, and that is a higher-risk investment. So, make sure you measure your risk.
Here you will find a detailed 6 Step Process on how to analyze and identify a good crypto investment:
As you can see, it’s not rocket science, but it’s very tedious and meticulous work considering that there are more than 13,000 different cryptocurrencies out there.
So, is there a way around it? Absolutely!
Personally, I like to think that I posses a decent knowledge about crypto, but I’m far from being an expert. Also, I don’t have the time necessary to really get into each and every cryptocurrency out there.
So, what do I do?
I take a shortcut…
There are only 2 ways to grow your investments with cryptocurrency:
- To learn and research until you are confident enough.
- Copy someone who does the research and has the knowledge already.
And that’s where we come to Copy my Crypto.
I have been a crypto investor since 2014, and believe me, I’ve tried and seen it all.
I’ve listened to YouTube “experts”, paid tutors, done my own research, and nothing comes even close to Copy my Crypto when it comes to straightforward, easy and profitable.
Copy my Crypto was created by James McMahon, a math and statistics professor from the UK. James has recommended 26 cryptocurrencies, and if you had invested $100 into each of his picks, you would have made a staggering $123,795 in profit.
All this information is available on his website, and best of all, there is absolutely 100% verifiable proof.
And believe me, I’ve checked it all. So, I invite you to do the same.
You can try out Copy my Crypto for 7 days for only $1, and if you don’t like it, you’re allowed to cancel your subscription any time during a 60 days period, no questions asked.
I truly strongly suggest that everyone, regardless of level of knowledge, but specially beginners, should at least check out this phenomenal site that has made all the difference for me.
Step 7: Monitoring Your Investments
Assuming you have invested a certain amount of your hardearned money into cryptocurrency, it is time now to start monitoring your investments.
Track Prices and News
Use apps and websites to keep track of cryptocurrency prices and market news. Stay informed about any developments that could impact your investments.
Review Your Portfolio
Regularly check your portfolio to assess its performance, rebalance if necessary, based on market conditions and your investment goals.
Step 8: Risk Management
I urge you to pay attention to this chapter as it is very important, and gives valuable advice on how to mitigate risks, and avoid common mistakes.
Diversify Your Investments
Avoid putting all your funds into a single cryptocurrency.
Diversify across different assets to mitigate risk.
Set a Budget
Only invest what you can afford to lose. Cryptocurrency investments can be highly volatile
Stay Educated
Keep learning about the market, new technologies, and emerging trends. Learn how to analyze, read charts, and predict market movements.
Common Mistakes
Investing in cryptocurrencies can be risky. Here are some common pitfalls and how to avoid them:
Falling for Scams
Be wary of projects promising guaranteed returns or asking for personal information. If it sounds too good to be true, it probably is.
Lack of Research
Don’t invest based on hype or hearsay. Do your own research before buying any cryptocurrency.
Emotional Trading
This one has cost me a lot personally. Avoid making investment decisions based on emotions. Stick to your investment strategy and avoid reacting to short-term market fluctuations.
Conclusion
Starting your journey into cryptocurrency investing can be both exciting and daunting. By understanding the basics, choosing the right exchange, and following a step-by-step approach to buying and managing your assets, you’ll be well on your way to becoming a savvy investor.
Remember, while the potential for high returns exists, it’s important to stay informed, manage risks, and invest wisely.
I hope this Cryptocurrency Beginner’s Guide will help you on your way to changing your life and an early retirement by investing in crypto.
Feel free to share this guide with all your friends and family, and you can download a free PDF version HERE. No email or personal data required!
Happy investing!