Compact Guide to Investing in Cryptocurrency

Compact Guide to Investing in Cryptocurrency

Cryptocurrency has been on the rise and many investors are looking to profit from it. Well-known cryptos such as Bitcoin have surged again, and other popular digital currencies are rallying, too.  If you’re looking to invest in crypto, you need to have all your finances in order – that means having an emergency fund in place, a manageable level of debt, and ideally a diversified portfolio of investments. Your crypto investments can become one more part of your portfolio, one that helps raise your total returns, hopefully.

Before getting started, we’d like you to check out Bitcoin Code – this software leverages state-of-the-art technology to provide traders with an accurate market analysis of the crypto market including Bitcoin and other digital assets. So, if you want to get an accurate reading of how the crypto prices could move in the future, I recommend Bitcoin Code.

Guide to Investing in Cryptocurrency

Moving on, here is how to start investing in cryptocurrency and what you need to watch out for.

1. Start Small

Like the stock market, the crypto market is extremely volatile which means prices will rise and fall unpredictably. It is wise to invest in cryptocurrency after you make sure you have enough liquid funds for at least 6 months without any debts. Once you have done this, start by investing in stocks, to understand your capacity to deal with risks. Once you know you can handle the ups and downs, set aside a small part of your money to invest in cryptocurrency. If possible, limit your investment to 5-10% of your income.

2. Select your Cryptocurrency

There is more than one cryptocurrency in the market right now with different price points. But it is advisable to not spread your portfolio as a beginner. A lot of homework is required to select the right crypto coin. Be aware of what is happening in the market, make a list of the 5 best performing cryptocurrencies and observe their growth chart. Right now Bitcoin is the largest cryptocurrency in the world, it’s also the most trusted one next to Ethereum, Ripple, Litecoin, and Binance Coin.

Here’s why this is the most important part of your investment journey. In the past decade, a lot of cryptocurrencies that entered the market either flatlined or disappeared without a trace. This means your $100 investment can turn into a big fat zero with just one hasty decision.

3. Pick the Right Cryptocurrency Exchange

A cryptocurrency exchange is a place where you can buy, sell or hold your crypto assets. It is important to know the best cryptocurrency exchanges with information about transaction fees, pros, and cons.  Crypto exchanges are specifically designed to manage cryptocurrencies and their volatile nature.

4. Choose a Cryptocurrency Wallet

A cryptocurrency wallet is software that stores the private and public key that acts as a link between you and the blockchain where your crypto assets are. Many people confuse crypto wallets with a storage place for cryptocurrencies but in technicality they just let you access your cryptocurrency on the blockchain with a crypto address known as the key. With this key, you can send and receive cryptocurrencies during a transaction with any company that accepts cryptocurrencies for payment.

5. Secure Your Cryptocurrency

Keeping your crypto secured is very important. Doing this is your responsibility so we recommend having a hot wallet handy. Anytime you use crypto online, you need to make sure your investment is secure. That’s why we recommend using a VPN like NordVPN to make sure your online transactions are secured and encrypted. 

When you use a VPN (Virtual Private Network), your online connection is secured. Having your data encrypted means that no one can see any of your online transactions. It’s an extra layer of protection that ensures both your data and your crypto purchases are completely anonymous. It makes it harder for others to hack into your accounts, especially for users who own a lot of cryptos. ExpressVPN is another VPN that can help secure your accounts and add an extra layer of protection. 

6. Don’t Invest More Than You Can Afford to Lose

It is important to avoid putting money that you need into speculative assets. If you can’t afford to lose it – all of it – you can’t afford to put it into risky assets such as cryptocurrency, or other market-based assets such as stocks or ETFs, for that matter.


If you follow the above-mentioned steps, you are ready to invest in cryptocurrency. No matter what cryptocurrency you invest in, prepare yourself for the market’s volatility, and analyze the price regularly.

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