How To Make Your First Investment In Cryptocurrencies
How many times have you watched Shark Tank and said to yourself, this would be a great company to invest in! How would you go about getting shares of the company.
Truth is, being able to invest in companies the traditional way is tough, especially if they are not publicly listed companies. Most people who invest in companies at this early stage are venture capitalists, professional investors, or millionaires who have money laying around to invest in random projects.
With cryptocurrencies, the playing field is leveled. Investing in cryptocurrencies can be easier than ordering groceries on Amazon or Jet. There typically isn’t a long approval process either such as when you apply for a bank account or credit card. Here are a few tips to start making your first investment:
Find a project you are passionate about. My first project was Ripple back in 2012 (will write a future blog post about this experience). Investing in a token is similar to how you evaluate startups on Shark Tank. Do you like the team? Do you think they are solving a real problem? What is their business model? Once you find a project that has a native token you are passionate about, next step is to find an exchange.
Sign up for an exchange. The most popular one out there is Coinbase which you may have heard of. However, for other crypto currencies not as popular as Bitcoin or Ether, you might have to go to a smaller exchange like Poloniex or even EtherDelta to buy these lesser known tokens. Once you have registered for these exchanges, you can browse and buy the cryptocurrencies you want to purchase.
Set up a wallet. This is probably the most important step in order to protect your investments. We recommend NOT storing your cryptocurrencies on the exchange since your funds may be stolen if the exchange is hacked. Our favorite wallet is MetaMask (a post about why you should use MetaMask to come). When you purchase your cryptocurrencies on the exchange, we recommend you send them directly to your wallet where they can be kept safe.
And that’s it! The most important advice we have is to do your research. Our team has spent countless hours researching tokens and cryptocurrencies to make it easier to understand which cryptocurrencies out there are interesting, safe, and potentially profitable to invest in.
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