For most people the first thing that comes to mind when thinking about investing in cryptocurrency is “complicated” or “where do I begin”, both valid thoughts and probably true if investing back in 2010, however now more than ever is the best time to get into the crypto world.
The new technology and exchanges available have made it really simple to invest in crypto not to mention the new ways of keeping your investment safe. The crypto world is changing and changing fast, it's becoming a lot more mainstream and very wealthy WallStreet investors are now investing in crypto. However, nothing is risk free in investing and cryptocurrency is no different, nobody really knows where it is heading so think carefully before investing and only put in what you can afford.
Now you're probably thinking Bitcoin or Etherium when looking into cryptocurrency, if so, then great, you already have heard of the 2 main coins that currently exist.
However, by no means are these two coins the only ones to invest in. There are over 2000 coins that are in circulation* and the number rises every year. One word you need to familiarise yourself with is Altcoins, these are coins that are not as big as the Bitcoins and Etheriums, but have great potential none the less, but of course riskier to invest in.
If you know about the stocks and shares market then you already know about stock brokers and platforms, very similarly there are platforms and brokers in cryptocurrencies, these are called exchanges. Exchanges have the same principles and are all different so finding the right one for you is very important. They all come with their own securities and fees, so some research is required when choosing the one to go with. You will be able to see a list of exchanges below that are highly rated, safe and with low fees.
Before you choose your exchanges it's important to first decide whether you are investing in Bitcoin, the top 10 coins out there or dipping your feet in Altcoins, as these decisions will prompt you in choosing certain exchanges more so than others.
The final step that will require your consideration is where and how you will store your coins once purchased, as you will need to have this setup before investing. There are several ways of storing your crypto, the most common being cold storage or exchange wallets. Cold storage includes hardware wallets where you will physically hold the word keys to your coins, very similar to a usb flash drive. The key words enable you to purchase a new hardware wallet and access your coins if you were to ever break your hardware wallet. Hardware wallets are very difficult to hack into for those trying to take your coins, as there is nothing available online on the internet, as you physically hold all your coins. However, this doesn’t mean your investments are completely safe.
Think of it as actually holding physical money or gold at home with you, if your house gets broken into then the likely hood is all your valuable possessions will be stolen. There are still steps involved trying to hack the actual physical wallet without your pin codes but can be easily done by the more cunning of hackers. Or how about if there is a flood or fire, then you will lose your wallet and most probably your word keys. You are able to see the most common hardware wallets available here.
Storing your coins in exchange wallets also has its pros and cons. It’s very convenient keeping your coins in the exchange wallets, if you were to exchange or sell your coins due to sudden change in the price of the coins it will be very quick to do so. Another advantage is you wouldn’t need to worry about actually keeping a physical wallet or word keys safe. However, if you leave your coins in exchange wallets then technically you don’t really own the coins as the word keys are stored in the exchange platform, so if you were to get hacked then you will most likely never see your coins again, unless it's one of the top few exchanges who have a separate pot aside for such circumstances
Now you are ready to make your first investment in cryptocurrency, Find the best Exchange to trade coins & tokens. We also recommend Wallets where you can store your investments safely.