How to Start Investing in Crypto
You search for an investment that will generate stable returns, even in a climate with increasing inflation. Maybe you’re seeking to diversify your investments or work towards your financial goals by embracing cryptocurrency trading.
Don’t let a lack of knowledge or feelings of intimidation keep you from purchasing cryptocurrency. Here’s what you need to know to get started investing with crypto, including info about how CurPay can assist with your investments
Get a Cold Wallet
If you want to store or hold your cryptocurrency, you’ll need a cryptocurrency wallet. For short-term trading, you may leave your crypto in your cryptocurrency exchange. However, this isn’t an ideal option for secure, long-term storage.
There are two types of wallets commonly used in cryptocurrency trading: hot wallets and cold wallets.
A hot wallet is also called a software wallet. It’s a type of digital storage that’s connected to the internet; you access it via your phone or computer.
Hot wallets are vulnerable to online threats, including hackers, because they require the internet to function.
To best protect your crypto, you need a cold wallet. A cold wallet is also known as a hardware wallet or cold storage. It’s a physical device that allows you to keep your crypto offline, protecting it from hackers and other online threats.
A cold wallet resembles a USB drive and will cost about $200. To ensure your cold wallet can’t be tampered with, purchase it directly from the manufacturer. Don’t purchase a used or secondhand cold wallet, as they may contain security threats.
Cold wallets are imperative for safe, secure long-term crypto storage. However, if you lose a cold wallet, you can’t replace it. Make sure you keep it somewhere secure, like a safe deposit box at your bank or in a fireproof safe.
Pick an Exchange
To purchase and sell crypto, you’ll need to select an exchange. An exchange is similar in design and function to a brokerage platform, only it’s used for purchasing and selling digital currencies.
You should examine a few different factors when deciding which exchange to pick. Some things to take into account include:
● Supported crypto assets (important if you want to invest in a specific type of crypto)
● Fees (there’s usually a fee for each transaction)
● Accepted payment methods
● Ease of use
Coinbase is a popular crypto exchange thanks to the large number of currencies available to trade (over 150), the low minimum deposit, high security levels, and user-friendly interface. It’s an excellent fit for novice traders.
Kraken is a crypto exchange that boasts a professional-grade trading platform. It’s geared towards experienced traders and offers advanced order types and supports futures and margin trading.
Once you select your exchange, connect it with CurPay to take your crypto trading to the next level. Some of the crypto exchanges we support include:
We’re continuously working to integrate our technology with even more crypto exchanges.
At CurPay, we use artificial intelligence to innovate crypto investing.
Our Automated Volatility Protection (AVP) technology is a patent-pending method of monitoring changes in asset values to help you maximize your profits and keep your assets safe.
Embrace Dollar Cost Averaging
You have a cold wallet and you’ve selected your exchange; now, you need to decide how you’re going to invest in cryptocurrency to maximize your returns and reach your financial goals.
Unfortunately, making investment decisions based on emotions and peer pressure can lead to subpar returns. Instead, embrace a crypto purchasing method known as dollar cost averaging (DCA).
With DCA, you don’t try to put your money in the next up and coming cryptocurrency or attempt to time the market. Instead, you make an investment on a specified schedule, regardless of how the market is doing or what others are purchasing and selling.
For example, assume you want to use $5k to buy crypto. Using DCA, you decide to contribute $100 every week instead of making one lump sum buy at a single price point.
There are multiple advantages associated with DCA:
● You hedge your bets: If you aren’t sure if prices are going up or down, DCA lets you purchase crypto at a variety of prices so you’re more likely to benefit when prices increase. You can also lower your average purchase price by making regular periodic investments.
● You avoid panic selling and buying: DCA removes emotions and peer pressure from the investing equation. You do your research, choose a sound investment, and contribute regularly, no matter what.
● You avoid accidentally “buying high:” Every investor knows that the goal is to “buy high and sell low.” Unfortunately, this isn’t always as easy as it sounds. Trying to time the market means that you might accidentally “buy high” and lose money on your crypto purchase. DCA spreads your investments out so that you’re more protected against market fluctuations.
Enhance Your Crypto Investing with CurPay
Ready to use artificial intelligence to power your crypto trading? Sign-up for CurPay today to use innovative technology to improve your investing!