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How do beginners invest in cryptocurrency easy 2023?

If you want to invest in cryptocurrency for the first time, you’ll be joining a new trading space that has been around for a while, and now has a market value of more than $3 trillion. Read and continue to know more How do beginners invest in cryptocurrency.

We’ll teach you everything you need to know about dealing in cryptocurrency in this guide for beginners. Key topics include how to choose a safe and low-cost cryptocurrency exchange, how to choose the best digital currencies for your portfolio, and how to trade in less than a few minutes.

How do beginners invest in cryptocurrency: 4 Easy Steps

You can buy in cryptocurrency through a regulated online broker in less than five minutes and in just four easy steps.

Best of all, if you do this with eToro, you can pay for your cryptocurrency investment right away in US dollars without having to pay any exchange fees.

Here’s a quick look at how to buy in cryptocurrency at eToro in four easy steps:

Step 1: Open an account with eToro. It’s very easy to open an account with eToro; all you have to do is give the company some personal information. You’ll also have to share a copy of your ID to stop people from using your money to buy drugs.

Step 2: Deposit. When you first open an account with eToro, you only need to put in $10, and there are no transaction fees (for US clients only). You can use ACH, a debit/credit card, an e-wallet, or something else.

Step 3: Look for cryptocurrency. Once you have money in your account, use the search bar to find the cryptocurrency you want to trade in. If you don’t know which digital asset you’re interested in, you can click the “Discover” button to look through the 60 digital currencies that eToro supports.

Step 4: Invest in cryptocurrency. When you click “Trade,” an order box will show up on your computer. Put the amount you want to invest in the “Amount” box, and then hit “Open Trade” to invest in the cryptocurrency you want.

Where to Put Your Money in Bitcoin

There are more than 100 online platforms and brokers that let you buy and sell cryptocurrency. When thinking about where to invest in cryptocurrency, we recommend picking a regulated provider to make sure you can do so safely.

Also, it’s a good idea to choose a site with low fees and, of course, support for the cryptocurrencies you want to use.

In the parts that follow, you’ll find reviews of places where you can safely and cheaply invest in cryptocurrency assets.

1. eToro is the best place to buy and sell cryptocurrencies overall.

eToro was started in 2007 and has become one of the best social trading platforms. It has a wide range of asset classes, which makes it a great place to learn how to make money with cryptocurrency. This includes everything from ETFs and index funds to forex and commodities, in addition to cryptocurrencies.

Here, you’ll have access to more than 60 coins, all of which can be bought with as little as $10. This means you’ll have access to both the best future cryptos and the best joke coins, like Dogecoin, Shiba Inu, and ApeCoin. You’ll also be able to get entry to the next cryptocurrencies that could become very popular soon.

This is perfect if you want to try out crypto coins for the first time but don’t want to put too much money at risk. Also, you can spend as little as $10 in expensive cryptocurrencies like Bitcoin and Ethereum, where each token is now worth thousands of dollars.

How do beginners invest in cryptocurrency
How do beginners invest in cryptocurrency

When it comes to fees, US clients of eToro can enter USD without being charged. This is true no matter what type of deposit you choose. Here, you can use ACH, web banking, debit/credit cards, and e-wallets like Paypal and Neteller. When you buy cryptocurrency, you only pay 1% in trading fees, which are built into the price you see when you place an order. So, you can use a credit card to buy Ethereum and other cryptocurrencies without leaving your home.

If you want to invest in cryptocurrency but don’t know which tokens to buy, eToro has a couple of passive trade tools you can use. First, there are smart portfolios that are properly managed and let you spread your money out over more than a dozen digital currencies with a single investment.

You could also use the tool for copy trade. This lets you spend the same amount of money in cryptocurrency as a trader who has a good track record. With copy selling, you can start out with just $200. We also found that eToro has one of the best wallets for people who are new to crypto. This is because when you buy tokens here, they are kept safe in your eToro web bank.

You can also get the eToro wallet app for your iOS or Android phone to have more control and freedom over your cryptocurrencies. Lastly, we should mention that eToro might be the best cryptocurrency exchange for people who are just starting out because both its website and its mobile app are very easy to use. Read our in-depth review of eToro to learn more.

Have you ever thought about how to invest in the metaverse? Cryptocurrency fans can get access to the best metaverse coins like MANA and SAND through eToro.

2. Coinbase is the best exchange for people who have never bought cryptocurrency before.

The Coinbase website itself doesn’t have a lot of features, which is likely to appeal to people who have never invested before. At Coinbase, you won’t find any complicated jargon, and when you buy in cryptocurrency, you’ll be walked through the process step by step.

Coinbase is an exchange that is highly regulated and is now a stock that can be bought and sold on the NASDAQ. We like that 98% of client funds are kept in cold storage and that every account must have two-factor identification. All in all, Coinbase is one of the best places to buy and sell cryptocurrencies.

But Coinbase also has some of the most expensive fees we’ve seen. For example, if you buy in cryptocurrency here, you will pay a standard commission of 1.49%. When you close a position, this 1.49% fee will be charged again. Even though there are no fees for ACH payments, there is a 3.99% fee for debit and credit card purchases.

This does, however, include the fee you pay when you trade. Still, you can almost certainly find better prices elsewhere. If you do decide to invest in cryptocurrency through Coinbase, you have a few choices for where to store your coins. This comes with a separate app for your wallet that lets you handle your private keys.

How to Invest in Cryptocurrencies

At first glance, the blockchain technology that makes cryptocurrencies like Bitcoin and Ethereum work can look a little complicated. But if you want to trade in cryptocurrency, the process is the same as when you buy stocks.

When you buy in cryptocurrency, the main idea is that you will make money if the value of the token goes up. This is based on desire and supply, just like stocks.

This means that the value of a cryptocurrency will go up as more and more people buy it.

To show how easy it is to invest in cryptocurrencies, we’ll use buying Solana as an example:

  • Let’s say you choose to put $3,000 into SOL.
  • When you order SOL at your chosen cryptocurrency platform, each token will cost you $32.
  • You decide to keep your SOL tokens for a total of two years.
  • Two years have passed, and now each SOL ticket is worth $65 USD.
  • This means that the value of SOL has gone up by 105% since you bought it.
  • Based on the above example, if you cashed out your SOL when the token was worth $65 and made a 105% profit, you would get back a total of $6050. So, you made a profit of $3050 on the $3,000 you put in at the beginning.

Even though profits of this size might seem high, keep in mind that Solana’s value has gone up by more than 15,000% since it was released in 2019.

How dangerous is it to invest in cryptocurrency?

It is a good idea to think about the many benefits you can get from investing in cryptocurrency.

But traders with a lot of experience will always think about the risks of an asset type before making an investment.

So, in the short points below, we look at some of the most important risks to think about when investing in cryptocurrency.

  • Many trades in the cryptocurrency markets are very risky and based on speculation. This means that the main focus is on price rises in the short term instead of long-term value.
  • Volatile: The fact that cryptocurrency are based on speculation means that this market can be very unstable. Also, the smaller a cryptocurrency’s market size is, the more volatile it is.
  • Rug pulls: A “rug pull” is a cryptocurrency project that was made only to trick people out of their money. Squid Coin is a current example of this. Investors who bought Squid Coin lost millions of dollars.
  • Hacks: Before you put money into cryptocurrency, you should also think about the fact that hackers like this asset class a lot. If your wallet is hacked from afar, your entire amount can be stolen in a matter of seconds. This is the biggest risk you face.
  • There are many things you can do to make it less likely that you’ll lose money when you trade in cryptocurrency. This means spreading your money out over a lot of different projects and doing a lot of study before you spend any money.

Buying cryptocurrency as an investment vs. trading cryptocurrency

‘Investing’ and ‘trading’ are often used as synonyms in the cryptocurrency business. But, just like in the stock market, these two terms refer to different ways of doing things.

In the case of buying in cryptocurrencies, for example:

  1. Most people who buy in cryptocurrencies do so with a long-term goal in mind.
  2. This is why so many investors try to find the best crypto investments for the long run on the market.
  3. This means that you will probably have to keep your tokens for at least a year.
  4. Once you’ve bought the tokens you want to invest in, you don’t have to do much else.

When you trade in cryptocurrencies:

  • Trading in cryptocurrencies is usually seen as a short-term plan.
  • This means that you could buy a coin and sell it within the next few weeks or months.
  • Sometimes, traders will open a position and close it in the same day.
  • Importantly, trading in cryptocurrencies requires that you do your own study and technical analysis.
  • As a newcomer to this field, it’s best to think about cryptocurrency in the long run. This means that you will try to pick projects that are solid and have a good long-term outlook. You won’t care much about short-term instability.

Is it safe to put money into crypto?

In short, investing in bitcoin in the US is a very safe thing to do. But, as we’ve already talked about, there are still some risks that you need to think about to make sure that your finances are always safe and sound.

Make sure that you only trade in cryptocurrency through an online broker that is licensed to offer digital asset services to US clients.



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