How to start investing in cryptocurrency?
When you invest in crypto, you always take some risks, regardless of which digital coin you choose. Some investors tend to invest only in popular and time-proven cryptos, such as Bitcoin, Ethereum, Tether, etc. These coins are very unlikely to quickly depreciate in value, so they have the opportunity to make a profit and not lose a lot of money. Other users are always hunting for new cryptocurrencies with great potential. Of course, this method can help you multiply your savings by ten or even more times, but the chance that you will find the right currency on the first attempt is small. Another option that is available on the market is to purchase digital coins that imitate the exchange rate of some real fiat currencies such as Tether USDT or USD Coin, which are always pegged to the US Dollar, and deposit them in crypto savings accounts for risk-free passive income. Such an investment can be used as a hedge against inflation and allow you to carry out transactions anonymously using a familiar currency. To sum up, first, you should define your purpose of investing in crypto and choose your own strategy, or even combine them together and spend a part of the savings on each method.
How to Purchase Cryptocurrencies?
If you want to get started investing in cryptocurrencies, you should follow the steps outlined below.
1. Choose the optimal exchange platform: It should have good reviews, have official permission for operation, and not be completely new on the market.
2. Create an account, then prove your identity and age by providing the required documents: Most crypto exchanges require a person to be at least 18 years old. Such rules were implemented due to the KYC laws, the non-observance of which will lead to a ban on activities of the company.
3. Download or purchase a crypto wallet: If you want to remit the cryptocurrency with very low fees and outside the selected crypto exchange, then this tool is also a necessity. What’s more, almost any trading service can be hacked, but this can’t happen to a verified crypto wallet.
4. Replenish your account on the crypto exchange: Most services nowadays offer a huge variety of payment methods, from e-wallets to credit and debit cards.
5. Select the cryptocurrency which you would like to purchase and its amount: You don’t have to purchase the whole number of any digital coin. For instance, you can buy a hundredth or thousandth of one Bitcoin and spend the exact amount of money that you were planning.
Three Types of Crypto Exchanges
When it comes to purchasing digital coins, you can use the services of a crypto exchange to make the process fast and easy. However, there are three types of this web-based tool. We would like to highlight the main features of each of them so that you can analyze this information and make the right choice for you.
1. Centralised Cryptocurrency Exchanges (CEX): This trading tool is simply an intermediary between the buyer and the seller. Such platforms are very widespread, as they keep your money in relative safety and sometimes provide newcomers with Fiat/Crypto Pairings, allowing them to get an idea of how much each currency costs.
2. Decentralised Cryptocurrency Exchanges (DEX): In this case, the platform allows investors to automatically make deals with each other and exchange one cryptocurrency for another. A big advantage of DEX is that you only need to provide your crypto wallet to start interacting with buyers and sellers. DEX services are usually used by experienced traders because they are a bit more complex than CEX. This is why you won’t find a lot of Decentralised Cryptocurrency Exchanges these days.
3. Peer-to-peer Exchanges (P2P): This method is considered a bit old-fashioned, as it represents a bulletin board where traders seek each other out directly. Here, all deals are carried out manually through arrangements. This method is rather risky, as there are no guarantees, but is still used by those who started investing in crypto a very long time ago.
Even though cryptocurrency is a relatively new area of finance, its relevance, as well as the capital of crypto-project founders, grows with rapid speed. The represented sphere has all the chances to become the best alternative to the traditional banking system because the decentralized Blockchain system has almost no disadvantages, or at least does not contain the same drawbacks as the banking sector.
Nowadays, digital coins are available to absolutely everyone who owns a smartphone or a laptop. If you have any spare cash, you can invest it in cryptocurrency and start gaining experience in order to increase the value of your capital.
If you are a wealthy person, investing in cryptocurrency will allow you to receive additional regular passive income and help protect your money savings from inflation.
To sum up, if you have ever thought of generating passive income, minimizing the depreciation of funds, or just learning something new in the sphere of technology, then you should probably give the crypto industry a chance. A competent and rational approach to investing, willingness to gain the required experience and knowledge, and just a bit of luck give you all the chances to succeed in this sphere and start to make a profit!
High-yield Passive Income from Cryptocurrency on CoinDepo
The CoinDepo platform supports major cryptocurrencies (Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash) and stablecoins (USDT, USDC, DAI). With CoinDepo, you can safely store your crypto assets in Compound Interest Accounts and are guaranteed to earn from 12% to 24% per year without the risk of volatility, depending on the type of interest account you choose. Today, without exaggeration, this is the best offer on the market.