How To Get Started With Your Digital Asset (Crypto) Investment Strategy
Cryptocurrency has been one of the most popular topics of discussion online for years and a good reason. People all over the world have become extremely wealthy thanks to some smart crypto investments, and now in 2021, there are about 900 new coins in the market every day.
In other words, for anyone who is looking to get into the cryptocurrency market, now is a perfect time.
If you want to become a digital asset investor, you should always stay vigilant for up-to-date information and look for resources online. This article lists all the steps you need to take so you can start your digital asset investment strategy.
Choose Your Exchange And Currency Type
Just like someone who wants to exchange stocks needs a broker, people who want to invest in cryptocurrency need to find an exchange from which they can buy coins. There are many options out there, but some of the most popular ones include Coinbase, GDAx, and Bitfinex.
Do your research to choose the best exchange for you, create an account, and then you can buy your digital assets.
These exchanges accept debit cards and allow you to choose between different currencies. Keep in mind that just one coin can be worth thousands of dollars, but you can also buy a fraction of a coin for however much money you’re willing to invest.
Don’t Invest All Of Your Funds In One Place
One thing you will probably hear from every digital asset investor is that the key to success in the crypto market is to diversify. Coming back to the stock market comparison, just like you should invest in multiple types of stocks, you should also have a very diverse cryptocurrency portfolio.
Since the value of coins changes every day, it’s impossible to know which one will be the best investment, so you need to do your research and decide what’s the best opportunity. After all, if you want to learn how to invest in crypto, you need to do some research.
Invest in multiple coins you believe have the biggest potential based on their previous track record, price, and overall popularity. When you establish a diverse portfolio, you will also set a great path for future gains in the cryptocurrency market.
Understand the Different Types Of Wallets
When you purchase a unit of cryptocurrency, it will be added to your digital wallet. While there are multiple options for storing digital assets, wallets are the safest ones and there are currently about 70.44 million blockchain wallet users worldwide.
Many first-time investors make the same mistake and believe that exchanges are the same as wallets, but they’re completely different things. While it is possible to keep your digital assets online on your exchange, there is a lot that can go wrong.
The exchange can get hacked or go down for any other reason. This has happened before and nothing can guarantee that it won’t happen again. But when you have a wallet you’re the one in control of your digital assets and can have immediate access to them.
There are two main types of wallets:
- Hot wallets provide ease of access and are great for new investors for this reason. But since they’re susceptible to being hacked, it’s best to only use them for temporary storage.
- Cold wallets, on the other hand, can’t be hacked if they’re properly prepared. While they are more complicated, their safety is what makes them ideal for those who are looking to save their coins for a long time.
However, there’s no need to choose between these two types because you can get them both and make the most out of them. Get a cold wallet that you will use for long-term storage and a hot wallet for the temporary storage of a small number of coins that you will use regularly.
