For many people, cryptocurrency has long been a part of life. They pay with it, invest in it, buy it, and, of course, make money from it. Many technologies have been invented to work with cryptocurrency. A prime example of this is algorithms for exchanging cryptocurrencies. Their main goal is to find the best token exchange rates.
But what about ordinary people who do not understand cryptocurrency? We are convinced they can also make money on it because the entry threshold here is not so big. Therefore, we will try to prove that cryptocurrency is not as difficult as it seems at first glance and that even a beginner can make good money on it.
Step №1: Decide how active you will be
Before buying cryptocurrencies, you should decide how to grow your portfolio. That is, to make a profit. There are several ways for this:
- invest in order to trade (sell/buy and make money on price differences);
- invest in the top coins and hold until the moment when the profit on its sale seems satisfactory;
- invest in coins for earning interest: staking or cryptolending.
It is essential to decide on a strategy before the first purchase of cryptocurrency because it will determine how much time per week you will devote to tracking the course. And if you by no means want to lose money, you must know the importance of such awareness.
Step №2: Answer the main questions
The first step is to understand if the cryptocurrency you want to buy is a safe investment. To understand this, you need to answer a number of simple questions:
- How long has this cryptocurrency existed?
- Have there been any ups and downs during this period?
- What was the backdrop of this? Yes, media monitoring is needed here.
- Does any influencer directly influence this asset?
- Or does the asset directly influence the market?
- What type of asset can it be attributed to (DeFi, NFT, and so on)?
- After the fall, to what values did the asset’s price rise? Has it recovered or remained at a minimum?
- Does the asset have liquidity on the exchange you use?
- What are the trading volumes for the coin? The higher they are, the better.
Before deciding to buy a crypto asset for further earnings, it is important to answer these questions for yourself.
Step №3: Welcome to the exchange
Registration on all cryptocurrency exchanges is the same — you need to enter a phone number, mail and confirm them. Then top up your wallet. If you are a client of a centralized crypto exchange, it automatically creates a wallet for you when you top up your balance. Then choose a more convenient way to replenish.
If you decide to buy through CEX, you have to deposit fiat money into your account first. And for this, you need to pass KYC (document verification). That’s why it is optimal to immediately verify the account.
If you want to buy through the trading mode, find the one that suits you in the list of trading pairs. For example, you want to buy bitcoin with dollars. Find the “fiat” section in the “Market” list and see if bitcoin is traded in a pair with this currency. Click on it to buy cryptocurrency.
Now that you have bought the cryptocurrency you want, you can safely manage it and earn money. Try to be guided more by a cool head than by excitement in this process.