2023 Guide To Investing in Cryptocurrency

The profitable, ambitious, and thrilling world of blockchain technology is right around the corner! Are you one of the millions of prospective traders who are preparing to embrace the crypto markets? If so, you’ve come to the right place, as we’re here to help you set off on your investment journey. 

Cryptocurrency investing can seem daunting to many, but this highly lucrative currency is actually surprisingly accessible. In fact, you can get started with buying cryptocurrency for the first time in five simple steps. In this article, we will carefully break down each step to make the process seem much more approachable. We’ll also provide some key tips to help increase your chances of success as a trader. 

After reading this article, you’ll have all the knowledge you need to begin buying crypto assets and officially kick-starting your trading career. We’re ready when you are! 

How To Invest in Cryptocurrency 

In this step-by-step cryptocurrency investing guide, we’ll show you exactly what you need to do to buy your first coins. We’ve made this guide as straightforward as possible to help absolutely anyone enter the crypto market. So, if you’re ready to take your first steps as a trader, read on! 

1. Join a Cryptocurrency Exchange or Brokerage 

To start, you’ll need to decide whether you want to trade through a crypto exchange or a crypto brokerage. It is one of the most important decisions you’ll make as a new trader, so we’ll do what we can to help you choose the best option for your needs. Check out our breakdown of your main options: 

Crypto Exchanges

A crypto exchange is a digital marketplace that facilitates the buying and selling of cryptocurrency coins. Traders can choose to join either a centralised or decentralised exchange, depending on their preferences and experience levels. 

Centralised crypto exchanges operate similarly to stock exchanges and are regulated by a signal authority. These exchanges are easy to use and suitable for beginner traders. However, with these exchanges, due to the involvement of an intermediary, trading fees can quickly add up.

On the other hand, decentralised crypto exchanges support peer-to-peer (P2P) trading through a distributed ledger infrastructure. They have no centralised authority, meaning that traders will have fewer trading fees to pay. However, these exchanges are much less user-friendly and are typically only suitable for more experienced traders. 

If you can’t decide between these two types of exchanges, then you can opt to get the best of both worlds by joining a hybrid platform such as KuCoin. This full-featured platform incorporates a combination of elements from both centralised and decentralised exchanges. 

Crypto Brokerages

A crypto broker, which can be made up of an individual or an entire firm, provides a more tailored approach to trading. Rather than simply facilitating crypto transactions, brokerages aim to assist traders through advanced resources and tactics. Their services can range from offering advice and suggesting new strategies to providing tools that can assist throughout the entire trading process. 

Crypto brokers are undoubtedly the best option for inexperienced traders. They strive to make trading more accessible and less daunting for newcomers. Furthermore, brokerages tend to be an affordable alternative to exchanges since the brokers themselves often set coin prices. 

If you want to connect with a well-rounded broker that perfectly caters to your needs, you can do so by joining a crypto platform such as  https://immediate-bitmasters.com/. This platform uses AI technology to efficiently match its users with compatible brokers, drastically streamlining the process for traders. 

2. Fund Your Account 

After you’ve chosen to join either an exchange or brokerage, you’ll be ready to fund your account. It involves connecting a payment method, such as your bank account, and depositing fiat currency. Depending on your exchange or brokerage, you may need to wait anywhere between a few minutes or a couple of days for your deposit to be verified. After the verification process is complete, you can use this deposit to begin buying various digital assets on your chosen platform. 

Due to exchange deposit fees, we suggest planning ahead and setting a clear budget before funding your account. Once you determine how much money you’re prepared to put towards your crypto holdings, you can make a single large deposit. It will be much more cost-effective than constantly topping up your trading account with multiple smaller transactions over time. 

3. Decide on a Trading Strategy 

The next step is to decide on a trading strategy. Establishing a trading strategy will help you stay focused on your goals and will increase your chances of making a profit. As a complete beginner, we suggest pursuing easy-to-understand strategies that won’t consume too much of your time. This approach will give you a chance to improve your skills and gain confidence. 

Popular Trading Strategies 

Check out the best beginner-friendly trading strategies to try out: 

• Day trading – This strategy involves buying and selling crypto assets within a single day. The aim of day trading is to profit from short-term market movements whilst eliminating the risk of holding assets overnight. Day trading is simple and low-risk, making it one of the top trading strategies for beginners. 
• HODLing – Short for “holding on for dear life”, HODLing refers to holding onto assets for a long time period. HODLers do not sell their assets, regardless of market conditions, with the goal of making a significant long-term profit. This strategy does not require a large time commitment or any technical knowledge, making it another terrific option for inexperienced trades. 
• Dollar-cost averaging (DCA) – With DCA, traders buy smaller amounts of crypto assets at regular intervals regardless of their price and current market conditions. This strategy removes the emotional aspect of trading, which can be highly beneficial for many traders. DCA is suitable for those with a lower budget or anyone who doesn’t want to set aside time to conduct extensive research when trading. It is one of the most straightforward approaches for crypto traders.  

4. Choose Your Crypto Coins 

After you’ve decided on a strategy to engage in, it’s time to pick a handful of assets to start trading. You definitely need to take your time with this step since you’ll have plenty of options. We recommend heading to an online coin marketplace such as CoinMarketCap to see a complete list of all available crypto coins. You can also check out valuable information such as each coin’s price, market cap, trading volume, and supply. 

Top Cryptocurrencies To Invest In 

Still can’t decide? Here are some of the top crypto coins you can start investing in to establish your portfolio: 

• Bitcoin (BTC) 
• Ethereum (ETH)
• Solana (SOL)
• Cardano (ADA)
• XRP (XRP)
• Tether (USDT)
• Binance Coin (BNB)
• Avalanche (AVAX)
• Polkadot (DOT)
• Litecoin (LTC)

5. Start Trading 

Now, the best step of all – trading! Yes, that’s right; after you’ve completed all the above steps, you’ll be ready to enter the crypto market once and for all. This exciting journey will take you on plenty of highs and lows, so remember to strap in and don’t panic. 

But don’t worry, this isn’t where our article ends! Keep reading to discover our top tips for investing in cryptocurrency in 2023. 

Top Tips for Investing in Cryptocurrency 

As a beginner, you’re bound to make plenty of mistakes. Don’t fret, however, as this is all part of the learning process. If you genuinely want to improve your chances of making a profit when buying and selling crypto assets, then check out our top beginner tips for trading: 

Diversify Your Portfolio 

Our first tip is to try to diversify your portfolio as much as possible. It will create balance, which can help you withstand the constantly fluctuating crypto market. Many experts recommend investing in between 3-9 different coins to create an optimised portfolio. You can choose to diversify your portfolio in a variety of ways, such as by coin type, market cap, and industry. 

If you’d like to establish even more balance, you can also opt to invest in another digital currency aside from crypto (such as CBDCs). Just remember to do plenty of research on alternative digital currencies before making any investment decisions. 

Examples of Portfolio Diversification 

Although you can invest in a variety of coins at random, many traders opt to follow predetermined ‘rules’ to help them plan out their portfolios. Check out some examples below:

The 80/20 rule – When following the 80/20 rule, traders dedicate 80% of their portfolio to the largest cryptocurrencies, whilst the remaining 20% is made up of lesser-known altcoins. Here is an example of a portfolio that’s created according to the 80/20 rule:

• Bitcoin – 50% 
• Ethereum – 30%
• Solana – 10% 
• XRP – 5%
• Dogecoin – 2.5% 
• Ripple – 2.5% 

The 40/30/30 rule – This rule requires traders to invest 40% of their portfolio into the top two crypto coins (Bitcoin and Ethereum). The remaining 60% is then split evenly between coins with a market cap of more than $10 billion and coins with a market cap between $1-10 billion. Here’s an example of a portfolio that adheres to this rule: 

• Bitcoin – 20%
• Ethereum – 20% 
• XRP – 10% 
• Solana – 10% 
• Tether – 10% 
• Cardano – 10% 
• Litecoin – 10% 
• Avalanche – 5% 
• Polygon – 2.5%
• Chainlink – 2.5% 

Stay up-to-date with News 

Another way of improving your chances of profiting from cryptocurrency is by staying up-to-date with relevant news. We are in an era where the cryptocurrency market is rapidly evolving whilst the world continues to adapt to it. Due to this, there are almost constant changes taking place both inside and outside the industry, which can impact the prices of crypto assets. 

To stay in the cryptocurrency loop, you should try regularly checking out crypto-related news from reputable sources such as CoinTelegraph. Additionally, we recommend subscribing to online newsletters to receive curated news straight to your inbox. You can also head to social media platforms to follow news outlets, influencers, and crypto experts. 

For a more hands-on approach, you can join an online crypto forum or community, such as r/cryptocurrency or r/trading on Reddit. It will give you a chance to participate in relevant conversations with like-minded individuals. Whatever avenue you choose to pursue, never underestimate the value of staying well-informed about the crypto, trading, and financial industries. 

Keep Your Emotions in Check 

Whenever you decide to purchase cryptocurrency or rebalance your portfolio, it’s essential to keep your emotions in check. When we say this, we’re referring to resisting making emotion-driven decisions and instead sticking to your original budget and strategy. Of course, this is easier said than done, and many traders end up making irrational decisions based on feelings such as FOMO (the fear of missing out). 

To avoid making crypto investments that are driven by your emotions, you must always stick to your trading plan. It is vital to do, even if there are unprecedented market movements or if other traders appear to be making substantial profits from certain coins. The market is unpredictable, so you should always be prepared to accept potential losses and miss out on profitable opportunities. 

Other ways of staying on top of your emotions when trading include taking regular breaks, maintaining a trading journal, and only ever investing what you can afford to lose. 

Conclusion

Congratulations, you now know how to invest in cryptocurrency! This virtual currency has plenty of unseen potential that you can unlock through trading. Fast international payments, private transactions, and protection against inflation are just a few advantages of cryptocurrency. 

Taking your first steps as a crypto trader is much simpler than you may have previously expected. After joining a suitable cryptocurrency exchange or brokerage and funding your account, you’ll be ready to pick a trading strategy and select a handful of coins to invest in. Finally, If you follow our top investment tips, then you’ll undoubtedly have a stable portfolio and plenty of insider knowledge to help guide you along your exciting crypto trading journey. 

Disclaimer: Any information written in this press release or sponsored post does not constitute investment advice. Thecoinrepublic.com does not, and will not endorse any information on any company or individual on this page. Readers are encouraged to make their own research and make any actions based on their own findings and not from any content written in this press release or sponsored post. Thecoinrepublic.com is and will not be responsible for any damage or loss caused directly or indirectly by the use of any content, product, or service mentioned in this press release or sponsored post.