How To Invest In Cryptocurrency - A Beginner's Guide

Cryptocurrency is today's most eminent and rapidly cruising space of asset-investment. Now, in India more than 10cr people are Trading/Investing in cryptocurrency, according to the data of 'Broker-chooser'. Big mob of investors are dreaming of having few cryptocurrencies in their pocket, and desiring to try out this nascent asset class. But, most of them are not getting that initial inertia, which directs/guides them in taking a gigantic leap in the crypto investment. Full-time employees who are keen to pour their money in this, probably don't have enough time to do minuscule research and cast an investment strategy as per their wisdom of spending. Also, many ambitious investors are anonymous about the How's & Where's of this Investment arena. So, for these iron-willed enthusiasts, here is a 5 point beginner's guide which will provide a complete navigation from beginning to end in the cryptocurrency investment;

Frame An Investment Strategy

Devising your investment strategy, always ensures more security and hefty paybacks on your put-ins. A tyro investor should do microscopic research of the crypto market and its trading currencies. Parameters of technical and fundamental analysis like MACD (Moving average convergence divergence), RSI(Relative Strength Index), OBV (On-Balance Volume), Hash rates etc, should be studied deeply while roadmapping your investment. It is readily available on crypto trading platforms like Coinswitchkuber, Coin DCX etc. Your investment strategy should be based on these gauging tools and also on your personal goals and objectives of investment. In this theme, another crucial stuff is portfolio designing, the portfolio of a beginner shouldn't be too diversified. It must entail at-most ⅔ best businessing crypto currencies, because initially you have less wisdom and knowledge about the elements of the crypto market like trends & momentum of currencies, fluctuations in their prices etc. In such a scenario, it is always better to bet on triumph horses instead of dark one's. So, while crafting a plan for investment, locks one thing in your mind, the more rectified & clarified your investment strategy will, the better chance you have to get early success in crypto outlay.

Pick The Best Crypto Exchange

The Crypto universe is totally exempted from all sorts of rules & regulations, so at the instance of hand-picking a trading exchange, you should be cautious about a few things. As there is no legal vigilance on crypto exchanges it spontaneously comes on the target of cyber criminals. The latest example of it, is the security breach of 'Bitmart', this Cayman Island based crypto exchange lost $195million worth of crypto assets in the cyberattack. That's why security/safety of a trading exchange is the top most factor to be lap-up in the check-list, its scrutiny can be done by plenty of factors like how much asset an exchange keeps offline (Cold storage), such as 'Coinbase', this notable crypto-exchange, claims that it keeps 98% cryptocoins of its subscribers in cold storage; it connotes that there are no such hefty assets on offer for cyber thieves, and ultimately minimizes the risk of asset-stealing from an exchange. You should also peep into the past of an exchange, do they have a dark history regarding any scams or frauds?

Is there anything which they want to conceal from you regarding their past ? You must inspect it meticulously. Usually, an exchange with a gigantic customer base gaze trustworthy mostly, but not for every while. Sometimes the story behind the scene may be contrasting, because many trading platforms lure the customers through cheap & fancy schemes/offers, a whacking client base may also be a repercussion of this. Moreover, as a subscriber, you should always go for that trading platform which serves a hard check in documentation process, because mostly vulnerable exchanges give relaxation in verification procedures to catch up more & more customers, so always keep a suspicious eye on this factor. These are a few artefacts to which you should cognitively pay attention while opting a cryptocurrency exchange.

Open & Administer Your Trading Account

After picking a crypto exchange of your desire, you have to register yourself and open a trading account there. The Process of legal interrogation & cross-examining will take place firstly, for it your e-mail will be verified by dispatching an otp on it. Secondly, Identity proof of your will and some other documents have to be uploaded for the KYC(know your customer) process, after over & done with these legalities. Your pristine trading account will be handed over to you by your exchange. But, it needs to be funded before getting into the bartering affair. You can either link it with your regular savings and other bank account, or you can directly infuse money in it. You should also moat your trading account with strong & hard-to-crack passwords/pins to guard it from cyber-offenders. And, finally you're all set for business (Buy & Sell) in the crypto market with your trading account.

Cautiously Store Your Cryptocurrency

After buying Cryptocurrencies, the thing which looms a lot is its safe storage. The trio of Hot, Cold and Paper wallets are the alternatives to safeguard your cryptocurrencies. Hot wallets are digital wallets that are 24×7 glued to the internet and provide a plethora of easily accessible features for storage operations. While, all hot wallets carrying exchange wallets are highly-susceptible to cyber-attacks, because exchanges mostly hoards the assets in their digital safe, which always stays on the shooting mark of black hats. Other digital wallets like Metamask, Coinbase etc, could be more secure than exchange one's, as they hand over the complete helm of your account to you. Exchange wallets don't furnish the private key(password/pin) of your wallet to you as like other digi-wallets, so in such manifestation if an attack happens on an exchange you will lose all your money-honey. Cold storage/Offline storage is the premier option of caching your crypto-assets, they are offline storage pieces of hardware, which are always not connected to the internet, which makes them the safest choice of accumulation for Cryptocurrencies. Predominantly, their major forms are USB & Pen drives, but today brand new gadgets are debuting especially for encryption & storage of cryptocurrencies. Paper wallets can also be practised for storage of cryptocurrency, they basically hold the keys & barcodes of cryptocurrencies on the paper, that can be used for transition affairs. As they have nothing to do with the Internet, you can also bring it into the usage.

Keep Regular Check On Investments

The phase of after investment in cryptocurrency is also of huge importance, you as an investor ought to keep an eagle's-eye on the facets like trends & patterns of price fluctuations of your purchased tokens, because crypto market is extremely volatile in nature, the currency which is rampanting at the whole of your purchase, may not be tomorrow's rewardee. So, you can't dismiss it from your mind & sit relaxed, just like we carry out in other investments.

Closing Comments

As a fresh investor, you should be cognizant about the exclusive fact that Cryptocurrency is still in its infancy. The above guide will definitely shoot up your investment portfolio, but then also you can never execute a blind trust on its any aspect. You have to keep absorbing new knowledge about cryptocurrency and always stay curious & insightful about its versatile elements.

Author bio

I am an expert SEO content writer. I explore the space of cryptocurrency & write flashing articles/blog posts on it, which enlighten & educate the readers about this investment arena.