by Contributing Author
If you have always been curious about cryptocurrencies and are thinking of investing in them, now could be a great time to do so. Many other top cryptos are very affordable right now, and with the situation with global markets, we could see people rallying to these cryptocurrencies to avoid inflation.
If you want to get in on the action before the rally starts, however, you will need to learn the basics of crypto investing and know that you will need to do more than just sign up for some exchange and start trading. Let’s take a look at the steps you need to take if you want to trade crypto.
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The first thing you’ll need to get is a cryptocurrency wallet. Some exchanges will allow you to store money in their wallet, but your money will be at risk, and they will technically be the owners of the crypto. This is why you need to know what a crypto wallet is and how to pick one.
A crypto wallet is what will hide your private and public keys. Your private key is a unique cryptographic sequence allowing access to funds to the holder only, and the public key works as an identifier that should remain visible to verify transactions and identify you on the blockchain.
There are two main types of wallet. You have hot wallets which are software-based and connected to the net, and cold wallets which are hardware-based wallets that can be completely disconnected.
Hardware wallets are considered better for holding large sums of crypto since they can be secured physically, and software wallets are said to be better for everyday transactions. Start looking at both options and consider splitting your assets between the two.
The next thing you have to do is find a good exchange. Some of the biggest ones include Binance, BitFinex, and Coinbase. Note that some of these exchanges will allow you to exchange fiat money for crypto on the spot while others won’t. Either way, you must keep a crypto calculator converter in your tabs to get the price of crypto in fiat dollars whenever you need it. This will facilitate exchange and allow you to spot discrepancies very fast.
We don’t suggest that you veer too far away from the big exchanges as regulation around them is still very loose. There is no central authority governing them, and they don’t always have to be sanctioned by their countries’ financial authorities. So, if you should follow one piece of advice, it would be to start with the most popular exchanges and check their reputation with the community before you get invested.
Once you have everything set up, you can start looking at possible coins and tokens to invest in. The most important thing here is getting your information from the sources that matter and moving the markets.
You need to get familiar with all the top crypto news sites and start following some influencers on YouTube. Influencers are the ones moving the needle in the crypto world, not major channels, so you will need to listen to them if you want to keep your finger on the pulse. Reddit is also a major hub for crypto information and has tons of very reputable subreddits there, so start making an inventory of them and get active.
This is all you need to do if you want to get involved in the cryptocurrency markets this coming year. Remember to learn as much as you can about the movement in general and be patient before you get too excited.