Cryptocurrency is one of the most discussed topics in finance news today. If you have been following the trading news lately, you must be aware of the exponential rise and abysmal fall of these currencies. Due to its volatile nature, it is becoming a progressively popular investment asset owing to the high investment returns. It is the best time to learn about cryptocurrency and how to make the first investment.
With cryptocurrencies comes blockchain. Let’s dive right in!
What is blockchain?
It is a digital ledger that is encrypted and shared among multiple parties and can be described as a method by which transactions and movements of goods can be handled digitally and securely. Banks and governments, for example, move money and financial systems to businesses and consumers all over the world using both physical and computerized methods such as checks, debit/credit cards, etc. While blockchain is a secured digital ledger that handles the transactions of cryptocurrency swiftly, securely, and in a decentralized manner. Blockchain can theoretically be used for any transaction and cryptocurrencies like Bitcoin, Ethereum, etc. Blockchain and cryptocurrencies together bring a transparent financial history open to everyone. Since it is a decentralized system (no third-party involvement) many have come to believe that cryptocurrency will replace fiat money soon.
Now that we know how popular crypto can become, let us look at the steps to get started on the crypto investment journey today.
- Choose a crypto trading platform-
First off, you need to open an account on a crypto trading platform like CoinMarketCap and learn the basics from these platforms. You will learn a lot about the market, can track cryptocurrency, and stay updated on crypto news & alerts.
- Uploading documents for verifications-
You need to complete the KYC process like identity proof, address proof, PAN Card in order to protect and authenticate your profile. These investment platforms also ask for your bank account information to initiate transactions. All your documents must be verified before you can trade into these digital currencies.
- Research the market-
You should not blindly follow the trends but use your own discretion before taking a step ahead. Do your own research to know the ranking of the different currencies and figure out what works best for you. Avoid investing in currencies you do not understand and refrain from taking big risks at the beginning. Be curious about this new field and you will find yourself easily adjusting to the process.
- Select one crypto at a time-
The crypto market is a very volatile market where making investments can be extremely risky at times. Learn from one crypto at a time and gradually increase the number.
- Take it slow-
Cryptocurrencies are here to stay. If you are interested in investing then you should begin at a slow pace with small investments. Catch the momentum once you get the flow of it.
- Track financial news-
Keep up with the crypto news online to know the status of the market and predict future market trends of your currency.