The world of cryptocurrencies has become an increasingly important activity in the daily lives of investors. In recent years, multiple opportunities have opened up with new concepts that require some training. For this reason, we are going to explain a series of advice so that anyone can invest in cryptocurrenciesespecially newbies in the field.
Choose a cryptocurrency broker or exchange
The first activity that is necessary to carry out before considering investing is to choose a cryptocurrency agent or exchange. Both allow you to buy cryptocurrencies, but there are specific differences between them.
A cryptocurrency exchange or trading platform is a space where you can trade cryptocurrencies with other buyers and sellers. Commissions on these platforms are usually low. However, they have multiple types of operations and interfaces that can be difficult to understand for a beginner just starting out. Some popular cryptocurrency exchanges are Bybit, Coinbase, and Gemini.
When choosing a cryptocurrency exchange, make sure that you select one that allows you to buy cryptocurrency with a fiat currency, such as US dollars. Some exchanges only accept cryptocurrencies, which means that you need one cryptocurrency to buy another.
As a beginner, you may not have cryptocurrencies. If so, you need an exchange that accepts fiat currency to buy cryptocurrencies, Bybit claims.
For its part, a cryptocurrency broker makes cryptocurrency trading much simpler and more straightforward than an exchange. The interface is easy to use, although the commissions can be higher. The most popular cryptocurrency brokers are SoFi and Robinhood.
Afterwards, it is necessary to register on the platform to avoid fraudulent activities, for which it will be necessary to show the passport or driver’s license and a photograph and deposit cash with a fiat currency in the account.
Minimize the risks
The next step is to decide which cryptocurrency you want to invest in. There is no rule; almost any token can rise one day and crash the next. A beginning cryptocurrency investor needs a lot of luck to anticipate these moves. That said, you can take some steps to protect your investment, according to Kaspersky.
True beginners should choose a coin like Bitcoin or Ethereum, with a demand and track record among traders. Such coins do not usually rise in price as quickly as altcoins (alternative and little-known cryptocurrencies) and, in case you have to get rid of the token quickly, it will be easier to find a buyer. A higher market capitalization generally means lower risk.
If you are a daring investor, confident in your abilities and prepared to risk additional capital, check out the list of altcoins emerging. They are cheaper and promise faster profits, but they also have disadvantages, such as low demand among merchants, which, as we said, makes it difficult to convert them into real money. Of course, do not play everything on a single card, invest in several cryptocurrencies to improve your chances.
Protect yourself while trading cryptocurrencies
It is essential to use a secure communication channel for all your cryptocurrency transactions. If you have access to the platform’s website using public Wi-Fi, for example, cybercriminals can intercept transaction details or fake a website to steal your assets.
It is safer to trade from a home network than a public one, but you need to protect it properly. To get started, you must replace the default password of your router with one of yours Often the factory password is the same for all routers of the same model, which makes your Wi-Fi vulnerable to brute force attacks.
In any case, it is always best to carry out all cryptocurrency exchanges in a encrypted VPN channelwhich adds an extra layer of security.
When choosing a VPN service, pay attention to the connection speed (depending on the quantity and quality of the server pool) and the availability of a kill button. The latter is especially important for high-risk transactions: if the secure communications channel goes down for whatever reason, the master switch automatically disconnects your device from the Internet, preventing data from being sent unencrypted.
In addition to, of course, running a reliable security solution on your computer or smartphone. A lot of money circulates in the world of cryptocurrencies, which attracts cybercriminals. Therefore, unfortunately, the chances of finding malware specialized to steal keys from purses are quite high.