8 Steps for Investing in the Crypto Markets

Oliver J. Freeman FRSA
4 min readMar 4, 2023

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Photo by Sajad Nori on Unsplash

Caveat: On this blog, I will not be offering financial advice, as I am not a licensed investor; however, I will help readers to understand blockchain technology, cryptocurrency, and the financial markets revolving around both.

So, with the strong potential of a crypto ‘bull run’ inbound, I’ve seen a lot of people asking how to get involved with the volatile — but potentially lucrative — blockchain-powered currencies.

As a member of the blockchain community and investor in many cryptocurrencies, I figured I’d briefly introduce the process of investing.

So here it is.

Step 1: Learn the Basics of Cryptocurrencies

Before investing in cryptocurrencies, it’s essential to understand what they are and how they work. You can start by reading articles or watching videos that explain the basics of cryptocurrencies, blockchain technology, and how they differ from traditional assets.

Step 2: Choose a Cryptocurrency Exchange

Cryptocurrency exchanges are online platforms where you can buy, sell, and trade cryptocurrencies. Research different exchanges and compare their fees, security features, and user-friendliness.

Popular Cryptocurrency Exchanges:

Step 3: Create an Account and Verify Your Identity

Once you’ve chosen an exchange, create an account and follow the verification process. This may involve providing your name, address, and identification documents. Verification is necessary to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Step 4: Fund Your Account

After verifying your account, you can fund it with fiat currency (such as USD, EUR, or GBP) or cryptocurrencies. Different exchanges support different payment methods, such as bank transfers, credit cards, or debit cards. Choose a payment method that is convenient and affordable for you.

Note: Some banks empower customers to invest in the crypto markets, just as they do with other forms of investment; however, some, especially in highly-regulated countries, block crypto-related purchases.

Crypto-friendly Banks (in the United Kingdom):

  • Barclays
  • Monzo
  • Nationwide
  • Revolut
  • Royal Bank of Scotland
  • TSB

Step 5: Choose a Cryptocurrency to Invest In

Research different cryptocurrencies and choose one or more that align with your investment goals and risk tolerance. Consider factors such as market demand, use cases, community support, and overall market conditions. Remember to diversify your portfolio by investing in multiple cryptocurrencies.

Popular Cryptocurrencies:

  • Bitcoin (BTC)
  • Binance Coin (BNB)
  • Ethereum (ETH)
  • Stellar (XLM)
  • Uniswap (UNI)
  • Zcash (ZEC)

Step 6: Place Your Order

Once you’ve chosen a cryptocurrency to invest in, place your order on the exchange. This may involve specifying the amount of cryptocurrency you want to buy, the price you’re willing to pay, and the type of order you want to place (such as a market order or limit order).

Step 7: Secure Your Cryptocurrencies

After you’ve purchased cryptocurrencies, it’s important to store them in a secure wallet. Cryptocurrency wallets come in different forms, such as hardware, software, or paper wallets (also classified as hot and cold wallets). Choose a wallet that is secure, user-friendly, and compatible with the cryptocurrencies in which you’ve invested.

What is a ‘Hot’ Wallet?

A hot wallet is a cryptocurrency wallet that is connected to the internet, which makes it more accessible for day-to-day transactions. This type of wallet is usually software-based, and it can be accessed through a mobile app or a web interface.

Top Hot Wallets:

What is a ‘Cold’ Wallet?

A cold wallet is a type of cryptocurrency wallet that is not connected to the internet. Instead, it is an offline hardware device that stores your private keys and allows you to manage your digital assets offline.

Top Cold Wallets:

What is the Main Difference Between Hot and Cold Wallets?

The main difference between hot and cold wallets is their level of security. Hot wallets are more convenient and easier to use, but they are also more susceptible to hacking attempts and other security risks. Cold wallets, on the other hand, are much more secure, but they are also less accessible and more difficult to use for day-to-day transactions.

Step 8: Monitor Your Investment

Finally, monitor your cryptocurrency investments regularly and stay informed about market news and developments. This can help you make informed investment decisions and reduce the risk of making decisions based on outdated information.

Platforms for Monitoring the Markets:

Remember, investing in cryptocurrencies is considered high risk, and you should only invest what you can afford to lose. Always do your own research (DYOR), consult multiple sources, and seek advice from a financial professional before making any investment decisions.

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Oliver J. Freeman FRSA

Geopolitical supply chain writer | Contributor and Editor in the tech space. Occasional health and well-being writer.