Cryptocurrencies have revolutionized the global financial system. They are digital currencies that are generated and run on the internet, in the form of an online ledger.
They are backed with the strongest Blockchain networks that operate through secure cryptography for promoting safety.
In recent years, cryptocurrencies have assumed a massive fan following. They have not only countered allegations of being a ‘bubble’ but have grown to assume a market cap bigger than Apple! This has made everyone stand up and take notice.
Early investors in cryptocurrencies like Bitcoin and Ethereum have laughed all the way to the bank. Being still very much in its infant stages, there is massive potential for growth.
In this article, we try to put together a beginner’s guide on how you can get started in cryptocurrencies. If you are someone that is interested in investing in cryptocurrency, trading, or simply want to improve your knowledge base, this article is for you.
So, what are you waiting for? Let us get started already!
Getting into Cryptocurrencies: Am I Already Too Late?
One of the questions that most people who are looking to get into cryptocurrencies ask is this.
Given that cryptocurrencies like Bitcoin and Ethereum have become expensive to buy, the question is that have most of us missed the bus?
To be honest, No!
According to the most reliable cryptocurrency news websites, the truth is far from it. An asset like cryptocurrency is only a decade old. Meaning, that stakeholders even now would be considered as founder-investors three decades down the line.
The entire ecosystem is growing with newer coins, technologies, and supporting stakeholders. Getting into cryptocurrencies at this stage is perfectly alright.
In fact, for most experts, this is the best time. They point to positive governmental legislations minimizing risk and newer business models that are using the network to flourish.
You do not have just one option in front of you to grow. Rather, there are tens and hundreds of avenues you can explore when it comes to cryptocurrencies, Blockchain, and tokens.
With mainstream acceptance on the rise, now would be a great time to get started in the cryptocurrency ecosystem.
How to Get Started in Cryptocurrencies: 5 Important Things to know
In this section, we have tried to evolve the important areas in the form of steps. Following them will help you get started in the field of cryptocurrencies.
1. Set Up the Foundation with Basics-
If you want to get cracking on investing without any prior knowledge, please don’t! This is because you will end up committing mistakes that will seriously jeopardize your money.
The first thing you need to do is gather as much background knowledge about the ecosystem. This means understanding the various digital currencies, getting familiar with Blockchain technology, and more.
The more time you spend on this homework, the more comprehensive will be your understanding and knowledge. This will help you with regard to your future investing and trading decisions.
2. Understand how the Market Behaves-
Unlike regular foreign exchange or stocks, cryptocurrencies do not follow the same pattern. In other words, you cannot completely take your stock market understanding and apply it here.
Given how recent they are, the way the markets interact and behave with them is unique. You need to think of them as some kind of a halfway house between cash and stocks.
This means that you not only need to learn and know more about the market trends and projections, but also figure out the inner workings. You can always rely on credible platforms, news, and finance websites.
3. Always Start with a Small Amount when Investing-
Most young and novice investors make the mistake of buying/investing according to hype. They want to quickly ride the growth wave and end up wasting a ton of money.
This is why almost all financial experts point out that starting small is the best way to proceed. At this learning stage, you are figuring out how exchanges work, how you can invest in coins, and more.
This is why starting small with a few hundred dollars is the best approach. You cannot count on this money to deliver earth-shattering margins. Rather, you need to use this as some kind of a trial-and-error experimental setup.
4. Learn from Experts and Utilize Online Resources-
The internet is a goldmine of information on everything related to cryptocurrencies. Your knowledge and understanding should not stop post the first step.
Given how dynamic this field is, you need to constantly stay in touch with the latest happenings. This means using everything from social media to podcasts, webinars, blog articles, and guides to improve your knowledge.
You can also learn a lot by following the Twitter Feeds and LinkedIn profiles of authority investors and financial experts. The more you are aware, the better it will be for you.
5. Keep Crypto Trading and Investing as your Side-Hustle (in the beginning)-
Do not make the mistake of investing everything that you have in crypto. It might sound romantic and attractive, but it is not a good approach under any circumstances.
This means that you need to study, learn and invest in small percentages in your spare time. This is not the stage of leaving your full-time job or business and parking yourself in front of computer screens.
If you start small with a couple of hours a day, you will be learning slowly, but also not risking everything. This is an approach that will allow you to grow incrementally every single day.
The Bottom Line
Cryptocurrency has not yet reached a stage where it can be branded as the ultimate financial breakthrough. However, it is reaching up to that stage. This is why now would be the best time to pursue this seriously, albeit with some caution.
In this article, we have tried to present readers with a beginner’s guide to getting started in cryptocurrencies. If you have any more questions, you would like us to address the topic, let us know in the comments below. We will be more than happy to help you out.