How to start investing in cryptocurrencies?

You’ve heard a lot about the cryptocurrency market and would like to grow your own crypto-wealth? Unfortunately, you’re hesitant to take the first step into this unfamiliar world and wonder how to approach it. Which investment strategy should you choose, but most importantly,? Should you play the long game, or take a riskier approach with your capital in hopes of big profits? No matter which path you choose, you need to be properly prepared! Discover how to start investing in cryptocurrencies and avoid sinking your portfolio with just a few simple steps!

This is something entirely different from investing in, gold, or works of art, and it often requires at least some theoretical preparation. But I’ll get to that below.

How to Start Investing in Cryptocurrencies – Choosing an Exchange and a Digital Wallet

Let’s say you have 10,000 PLN that you want to invest in cryptocurrencies. However, you have no idea where to invest, what to invest in, or how to avoid falling victim to a scam that could make your money disappear. That’s exactly why, at the very beginning of your cryptocurrency journey, you should familiarize yourself with the available wallets and online exchanges that enable trading in digital currencies.

Fortunately, there’s plenty to choose from. Despite the huge number of wallets and exchanges available, only a few are truly popular. Wallets can be divided into online and offline types, and these are further split into more complex subcategories—your task is to pick the one that suits you best.

Wide selection of wallets

The most popular online wallets are:, while the best offline wallets include:. A wallet stores your funds, and only you have access to it. Sending cryptocurrencies requires presenting a private key—a unique string of numbers. It’s important to know that your money doesn’t physically exist in the wallet; instead, there’s only a numerical record of your funds stored in the so-called blockchain.

Do you already know how to start investing in cryptocurrencies and which wallet to choose? Great! Now it’s time to pick an exchange that will allow you to invest in digital currencies. The most popular platforms are giants such as. The main differences between them are the commission fees related to currency conversion, loans, and other transactions on the exchange.

Which platform?

These are platforms you can trust, without fear of scams or theft. Registration and login are secure, and to become a member of any of the listed exchanges, you must go through a thorough verification process, which includes phone verification and confirming your identity by submitting photos of your ID or another document. If a platform does not require such information from you, it may not be trustworthy and you should avoid such sites at all costs.

How to Start Investing in Cryptocurrencies – Your Investment Strategy – HODL and BTFD

You’ve already chosen your wallet and exchange, so you’re ready for your first investment. You don’t have much knowledge yet, but you decide to take the risk. All right, let’s take a look at the safest and less safe investment methods.

Investing in the cryptocurrency market may seem easy, as it is characterized by strong upward trends and occasional corrections. It’s safe to say that the market is not yet saturated and won’t be for a long time, so you can expect profits by adopting a long-term strategy. That’s why the most popular strategy is.

Long-term investing

Although the word is spelled incorrectly, it has become the subject of countless memes and gained a huge following. Where did this intriguing term come from? On December 18, 2013, a post titled I AM HODLING appeared on the bitcointalk.org forum, written by a user with the nickname GameKyuubi. In this post, he shared his strategy, saying he preferred to hold his bitcoins long-term because he was a poor player and speculator, as he himself wrote:. GameKyuubi decided to leave his funds untouched so as not to let other investors outplay him.

The very title of the post was an obvious typo, but in this way a new term was born, which is still used today. Some time after its publication, the HODLer Manifesto was even created, consisting of eight theses. The hodling strategy is based on a rational approach to investing. Warren Buffet himself once said that he only invests in what he knows, and his preferred investment horizon is “forever.” It’s thanks to this tactic that Buffet amassed his million-dollar fortune. Despite many bumps in Bitcoin’s journey, hodlers, by sticking to their strategy of holding and not touching their portfolio, are able to see significant gains over a longer period.

Less common strategies

You already know how to start investing and which strategy to choose at the beginning, so let’s move on – the next, slightly riskier investment strategy in the cryptocurrency market is the strategy, which involves buying at the dips, when prices are low. In practice, this means investing in a currency after a speculative bubble, following the so-called pump and dump period, that is, after artificially inflated rises and drops.

However, using this tactic requires nerves of steel and the ability to resist emotions, which can be treacherous and provoke buying currency at the wrong moment. A true speculator will wait until the “crowd” sells off their assets and will hold out for the next bubble to burst. As for selling, they will plan it for the moment of euphoric buying, following the principle of.

How does the Hold strategy work

The HODL strategy is much simpler for beginner investors and doesn’t require specialized knowledge. If you choose to invest in cryptocurrencies on your own, you should familiarize yourself with investor tools such as technical analysis. This will allow you to read charts independently, identify trend lines, and make more precise predictions about currency rises and falls. You can also benefit from the support of experienced investors by watching their moves on live streams. If you trust them enough, you can even copy their trades.

However, keep in mind that by familiarizing yourself with indicators such as, you’ll be able to apply the BTFD strategy more effectively. While you’re still learning, your best option is to invest and hold your assets long-term, hoping for profits in the distant future. If you now have a basic understanding of how to start investing in cryptocurrencies, feel free to explore our next articles on alternative investments.