In the world of cryptocurrency investing, the earning opportunities are as diverse as the cryptocurrencies themselves. In recent years, interest in digital assets has been steadily growing, and more and more people are asking the question: how to invest in cryptocurrency and make a profit? In this article, we will look at the key aspects of safe entry into the ecosystem and basic concepts that will be useful to learn before you start investing in cryptocurrencies from scratch.

Motivation of a crypto investor

For a long time, cryptocurrencies seemed to be a subject of speculation, which caused an understandable distrust of potential investors. However, every year they are becoming more and more tightly integrated into the global financial systеm and have already become an integral part of it. The success of large crypto projects, which are closely watched by the whole world, is no longer perceived as a sporadic upsurge and has moved into a phase of sustainable development. 

The advantages of crypto investments lie on the surface and are confirmed every day:

• High returns. Major cryptocurrencies have been able to bring their holders significant profits in short time frames. Bitcoin began its journey with a value of a few cents, and now trades in the range of tens of thousands of dollars per coin.
• Affordability. Investments in cryptocurrency can be made by anyone with an internet connection and a small starting capital. Cryptocurrencies are traded around the clock, which allows you to buy or sell them at a convenient time, being anywhere in the world.

Where to start to successfully invest in cryptocurrencies?

Choose the right asset

This is the most important question that the world of cryptocurrencies poses to a beginner. It requires patience and thorough research. The crypto market is growing by leaps and bounds and opens up a lot of opportunities. Some investors hit the target and enter the top of the richest people on the planet, while others go all-in, invest in new, bright projects and fail. You can choose young, inexpensive coins in anticipation of high profits. Or you can invest in stable assets and sleep well at night, confident that in the morning you will wake up, even a little, but richer. 

• Inexpensive cryptocurrencies are usually tokens of startups in the early stages of investment, when it is not yet clear whether the project will succeed. They are good for short-term investments, can show annual returns of more than 100% and at the same time carry the highest risks. According to statistics, 8 out of 10 startups cease to exist within the first year.
• The most stable cryptocurrencies for long-term investments are stablecoins backed by money reserves, commodities, gold and oil. Their exchange rate is pegged to fiat currencies. They are the least risky way to invest, and at the same time do not promise super profits. In any case, they offer more attractive rates than bank deposits. 
• Cryptocurrencies that show stable growth in the long term. Bitcoin and Ethe are the well-known coins that bring the highest income to their owners. Despite the volatility of the market, you should realize that you will never be able to buy these cryptocurrencies cheaply. 

Understand where to store cryptoassets

Safe storage is an important part of a successful investment. Consider storage options such as cold (offline) and hot wallets (online) and choose the most suitable one. Here you need to understand what cryptocurrency investing strategy you have defined for yourself as a basic one. If you plan to engage in active trading, you will need an account and a wallet on a cryptocurrency exchange. 

Possible strategies for investing in cryptocurrency

The ways to invest in cryptocurrency depend primarily on your temperament. When searching for the best method of how to invest in cryptocurrency, proceed from how actively you want to be involved in the processes involved, how quickly you intend to receive income, and what risks you are willing to take. Let’s take a look at some common cryptocurrency investment vehicles.

Long-term holding (HODL)

HODL is a strategy in which you buy a cryptocurrency and hold (store) it regardless of short-term price fluctuations in the hope that its rate will rise. Its essence – earning on the difference between the rate of buying and selling the asset at a successful moment after a certain time. 

Day-trading

Suitable for active investors, requires constant market analysis and quick decisions. It allows to profit from short-term price changes when buying/selling an asset.

The name of this investment method comes from the traditional financial sector, where exchanges have certain hours of operation. The cryptocurrency market operates 24 hours a day, so trading takes place at any time.

Value averaging

This is one of the most common methods in trading and investing. It involves gradually increasing the amount of investment in the selected asset in small installments. Thus, you soften the “entry point” without investing a lot of money at once, and reduce the risks of price volatility. 

How to make money on cryptocurrency for a novice investor and not go bust?

• Analyze the market. To make informed decisions, study the key indicators of the digital asset and the forecasts of practicing investors and analysts. Try to take into account as many factors as possible, such as news from the issuing company, technology updates, and major partnership agreements. 
• Take risks into account. Think about portfolio diversification right away, before you start investing. Don’t invest everything in one asset – diversity reduces the risk of loss.
• Set a painless investment size. Do not invest more than you can afford to lose.
• Keep emotions under control. Profitable investing requires discipline and clear planning. Create a plan of action and stick to it.

Is it worth investing in cryptocurrency in 2023-2024?

Of course you should. Study the market, research profile resources and bright marketing projects. The world of cryptocurrencies is filled with success stories. Dare and you! Effective asset management will definitely lead you to increased income and stable wealth.

Through our exchanger you can both buy and sell cryptocurrency and fiat assets at a favorable exchange rate. On our site you can make payments with popular payment systems, bank cards and make money transfers around the world.