Investment in cryptocurrency made easy, top 10 simple tips to follow

Around 300 million+ people worldwide are invested in crypto. If you take a look at the market stats, close to 106 million (globally) people have signed up with cryptocurrency exchanges. A major crypto trading platform has even predicted that the number of crypto investors will hit the 1 billion marks by the final lap of 2030. These encouraging figures unleash an expanding world for crypto investment and for all the right reasons. The major factor inspiring such admirable figures and facts are crypto’s high volatile nature that can reward with incredible returns- way higher compared to traditional stocks. However, for those uninitiated with the crypto scene, it might be slightly baffling to invest in cryptocurrency outright. Good thing is, the post below offers a breezy guide loaded with easy tips to invest in cryptocurrency.

  1. Study the crypto market

The primary tip to invest in cryptocurrency is to attain an extensive know-how about the crypto scape. It works true for any asset market and especially for a novel niche market like crypto. 

Study and gather a basic understanding of how the market works, its underlying blockchain technology, features and characteristics, potential ROI, future goals, developments, and so on. The research will not only acquaint you with technical crypto jargon but will also enable you to estimate where you might stand if you invest in cryptocurrency.

  1. Choose the right cryptocurrencies

Crypto market is flooded with over 18,000 cryptocurrencies and new ones are being added up after almost every 6 months. However, not all cryptos out there could promise strong returns. So, choose wisely when you  are about to put your hard-earned money to invest in the cryptocurrency market.

Aim for the ones that are backed by powerful fundamentals and sound future prospects. The bottomline is- invest in cryptocurrency assets that are developed to make a difference and will grow in value over time.

  1. Sign up with a crypto exchange

Creating an account with a crypto exchange is the most popular way to invest in cryptocurrency today. These are online platforms that facilitate buying, selling, and trading of cryptos for crypto investors and traders. Here are the top factors to check before signing up with a crypto exchange to invest in cryptocurrency-

  • No geographical limitations for your country

  • Offers a wide selection of cryptos, including your chosen ones

  • Allows various payment methods, other than credit card

  • Advanced security measures like 2-factor authentication, multi-factor authentication, insurance for funds, cold wallet for fund storage etc.

  • Affordable fees and no hidden fees

  1. Sign up with a crypto broker

If you think the interface of a crypto exchange is getting taxing for you, you can opt for crypto brokers to invest in cryptocurrency. Brokers are mostly preferred for their user-friendly interfaces that make things simpler, especially for beginner investors and traders.

One word of advice would be to look for paid brokers over free ones as you plan to invest in cryptocurrency through a broker. The free ones are mostly unsafe as they tend to make money out of investors’ data. Also, make sure your chosen broker allows you to store funds in your preferred cold wallet.

  1. Request crypto as a gift

Do you have friends or family members who can never stop talking about crypto these days? Well, that’s amazing- next time they ask what do you want for your birthday or Christmas, tell them you would love some cryptos in your wallet. You can use these gift cryptos to invest in cryptocurrency. 

It’s advisable not to sell off the entire amount at one go- higher returns might be on the radar if you HODL at least a part of the amount for at least 5 years.

  1. Individual Stocks of crypto-forward firms

You can begin to invest in cryptocurrency by investing in companies that invest in crypto futures or blockchain technology. These could also be companies that are working in the blockchain niche and making great strides in further evolution of revolutionary technology. 

An indirect way to invest in cryptocurrency, this option helps to reduce the lash of crypto’s aggressive volatility on the investor when the market takes a steep dive. 

  1. Index funds 

Accelerating popularity of the crypto scene has not only commanded institutional investments but has also piqued the interest of leading index funds. Some of the major index funds today have welcomed publicly traded firms that are involved with the crypto and/or blockchain industry. From Microsoft to Tesla, a major share of globally renowned corporate giants has decided to invest in cryptocurrency and the numbers are only growing.

If you are planning to invest in cryptocurrency but apprehensive of direct investment, count on these index funds.

  1. Crypto ETFs

Crypto ETFs also provide an indirect mode to invest in cryptocurrency and are especially handy for risk-averse crypto investors. 

The crypto ETFs are not exactly tied to a cryptocurrency but to the futures of the cryptocurrency. These are traded in conventional stock exchanges. When you invest in a crypto ETF, you don’t invest in cryptocurrency directly but in its futures. BITO is the first Bitcoin ETF. 

  1. Blockchain ETF

A blockchain ETF usually involves firms that are working on or working with cutting-edge blockchain technology. These firms could be either involved in development of blockchains or have invested in heavy use of the DLT technology in their operations.

Blockchain ETF is another indirect way to invest in cryptocurrency.  

By now, you are already acquainted with the fact that cryptocurrencies are developed on blockchain technology. So, an ETF tied to blockchain technology and its potential developments bears a strong connection with the crypto market as a whole.

  1. Know how much to invest in cryptocurrency

If you are planning to invest in cryptocurrency for your retirement portfolio, invest around 5% of what you are about to invest for retirement. 

The general rule of the thumb is to invest an amount that will allow you to pay all your monthly bills and take care of basic expenses every month even if the price tanks. A golden rule for anybody planning to invest in cryptocurrency is to refrain from going “all-in”. It means don’t just allot a whole lumpsum amount at one go. Smarter option would be to put something in the basket every month in small amounts. 

Last but not the least, if you are planning to invest in cryptocurrency for higher returns, try to wait for at least a decade before selling off your investment. 


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