Contrary to what it may seem at first glance, starting to invest in cryptocurrencies is quite simple.
In fact, the technology that allows the existence and circulation of cryptocurrencies, called blockchain, is still very new and little known to the general public.
In addition, cryptocurrencies already have a consolidated community around them, which has its own jargon. It is known as crypto community.
Therefore, the new investor may be a bit stunned at first. But you must not give up!
In the crypto community, there are all kinds of people. They are small and large investors, technology visionaries, programmers, day traders and millions of individual users. And it is not an accident! There are many advantages of investing in cryptography.
Advantages of investing in crypto-assets:
- Transaction Speed;
- Low rates;
- Little (or none) bureaucracy;
- High chances of making money.
With a little dedication and patience, it is possible to be part of the crypto community. Knowing the main concepts, studying the market well and being attentive to the latest trends, it is possible to obtain good returns on crypto investment. For all this, the Crypto Intercamp blog has prepared a complete Australian crypto beginners guide on how to start investing in cryptocurrencies.
1. Choose a cryptocurrency to invest in
There are literally thousands of cryptocurrencies in circulation, with different characteristics and purposes.
Some stand out for the speed of their transactions. Others, for its sophisticated architecture. There are some so-called stable coins, which are anchored to fiat money or commodities, and that have a less floating value. The main cryptocurrencies of the market are those with the highest volume of market capitalization. According to Comarkets, the most used are:
- Bitcoin – the best known and commercialized of all cryptocurrencies;
- Ripple XRP;
- Bitcoin Cash;
It is common for the novice investor to start acquiring one of the five major cryptocurrencies. As there are more of them circulating in the market, it is easier to acquire them in an exchange or with other users.
2. Choose an exchange
Once you have decided on which cryptocurrency to invest, you need to buy it in an exchange. The process is not very different from buying a foreign currency in any exchange house, except for the fact that the whole process is virtual. Each of the exchanges offers different quotes and service prices. In this case, it is also important to investigate well, to see which exchange offers the best conditions for the user. The vast majority offer the possibility of buying crypto with credit or debit cards.
Another option is to buy them directly from another user. In Local Bitcoins, for example, you can find people in your country who want to buy or sell crypto through different payment methods.
Crypto Intercamp Tip: Beware of fraud!
Before investing, it is essential to investigate the reputation of the exchange. Unfortunately, many malicious people have been using cryptocurrencies as a way of applying scams, especially through the so-called financial pyramids (or Ponzi Scheme).
Always read the ratings of other users on the internet and watch out for companies that offer exaggerated earnings promises. Therefore, choose exchanges that are known and offer transparency and speed, both in deposits and withdrawals.
3. Choose a virtual wallet
To perform any type of transaction with cryptocurrencies, it is necessary to have a virtual wallet. With it, it is possible to store and make transactions with your tokens. There are four types of virtual wallets, each with its own advantages and disadvantages.
Types of virtual wallet:
In general terms, it can be said that the first three are the best for making payments and transactions, and the last for storing large amounts of crypto.
4. Diversify your investment
The golden rule is not to put all the eggs in the same basket. In other words: diversify your investment. Each cryptocurrency has its own market, and price fluctuations are very different.
After all, one of the great benefits of investing in cryptocurrencies is the ease of changing them. Is the value of your crypto falling? Exchange it for another! Is there a token growing rapidly? Use your cryptocurrencies to buy it.
And if you want to change cryptocurrencies, Crypto Intercamp can surely help you. We have more than one hundred types of tokens, which can be changed in a matter of minutes. All intuitively, without commissions, with total anonymity and security.
5. Accompany the market
Now that you know the basics on how to start investing in cryptocurrencies, the next step is to follow the market with some frequency. Staying informed is essential in this area!
As this is a market without any control, price variations can be quite large.
Therefore, it is necessary to be aware of the latest news in the crypto universe. Declarations of the authorities, changes in the initial design of the tokens, new cryptocurrencies…. All this affects the price of crypto.
Another tip is to study the analysis of the experts, who explain what is happening and give advice on trends for the future.
Ten years after the launch of Bitcoin (which began in 2009), there is already enough data to understand some characteristics of the behavior of this market.
With all this, access to news sites and specialized blogs is essential to succeed in this area.
Conclusion: is it still worth investing in cryptocurrencies?
Undoubtedly, the investment in crypto is still worth it. For both short- and long-term investments, there are many benefits of crypto assets.
Due to the advantages offered by blockchain technology and the real possibilities of good performance, more and more users are using cryptocurrencies. With this, the tendency is for this market to increase in value.