How To Invest In Your First Crypto
There is no doubt that crypto is the future of investing and currency. However, it can be overwhelming when you are a newbie in this industry. While this is true, crypto is highly volatile. As a result, you should have the knowledge to generate big returns.
How to choose crypto to invest in
Choosing cryptocurrency is a critical step, and you need to combine your knowledge of the crypto market to screen. But for newbies, they often don’t know how to choose currency. The easiest way is to judge based on its market value. There are some of the cryptocurrencies with high market capitalization:
Bitcoin is the original cryptocurrency created in 2009 under the anonymous name Satoshi Nakamoto. The asset has become a household name in the industry. The market cap is over $641 billion.
Ethereum is a blockchain platform and crypto developed by Vitalik Buterin in 2013. It is designed to allow programmers to create their own applications. Its market cap is over $307 billion.
Dogecoin began as a meme in 2013 and has been embraced by celebrities like Elon Musk. Unlike other currencies, dogecoin has no limit on the number to be created. Therefore, it is affected by devaluation if supply increases. The market cap is over $44 billion.
Cardano was developed in 2015 by Charles Hoskinson, the ethereum co-founder. This public blockchain features proof of stake. Also, it enables decentralized applications and smart contracts like ethereum. Its market cap is over $51 billion.
Polkadot was launched in 2020. It builds a cryptocurrency network for connecting several blockchains to work together. Its market cap is over $21 billion.
Besides the best crypto to invest in, you need a reliable crypto exchange to trade. Gate.io is a leading trading platform with over 700 cryptocurrencies. Its spot trading volume sometimes reaches $2.9 billion per day.
What are the best ways to buy Cryptocurrencies?
Users can purchase some cryptocurrencies with U.S. dollars, such as Bitcoin. But other cryptocurrencies require you to pay with Bitcoin or other cryptocurrencies.
First, buying bitcoin using a peer-to-peer trading platform. P2P power trading is based on an interconnected platform. Consumers and producers can directly trade electricity without intermediaries.
Second, buying bitcoin with the Bitcoin.com Wallet.
The last and best way is that you can buy cryptocurrency on a “wallet,” an online application that can store your currency. Usually, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum. Gate.io is one of the best safe cryptocurrency trading exchanges to create wallets and buy and sell Bitcoin and other cryptocurrencies.
This trading platform has operated since 2013. With 8 years operating experience, the advantages of Gate.io are self-evident, including high security, high liquidity, strong stability, many currencies, etc. It has diverse coins and 700 crypto markets. In addition to that, it provides trading opportunities like spot trading, margin trading, push transactions, and ETFs. You can trade at relatively low fees that cost 0.2%. Further, users can secure accounts in many ways and reach out to customer support 24/7. Users get to enjoy numerous rewards for just using the platform. New users also get to benefit with rewards of up to $100.
Coinbase is a fully regulated exchange that was developed in 2012. It offers various products such as advanced trading platforms, crypto investing, custodial accounts, and wallets. Moreover, there are over 25 cryptocurrencies for staking, trading, and investing. However, it has high fees compared to competitors.
This United states-based exchange platform was founded in 2011. It offers over 70 cryptocurrencies with pairs for trading. Furthermore, it is safe to use and has reasonable withdrawal/deposit fees. It is more friendly to experienced traders than beginners.
There are fewer tradable currencies on Coinbase and Kraken. If you want to trade with more currencies or invest in financial management, you can choose Gate.io.
How to invest in crypto
Before you invest in a trading platform, there are several things to consider. This includes:
- Fees: reasonable trading fees like 0.2%. Also, the exchange should allow free deposits.
- Safety: it should provide high-security measures against theft—for instance, two-factor authentication when login.
- Diverse cryptocurrencies: the crypto should have trading pairs. Cryptocurrency pairs help to set the estimation of coins. Knowledge of crypto trading pairs gives savvy crypto investors the chance to exploit arbitrage opportunities, that is, the chance to profit from differences in asset prices between markets.
Should I invest in crypto?
It is possible to generate income by investing in digital assets. Nonetheless, you can also lose money. This is because they are highly profitable but risky. The minimum fee to invest in bitcoin is $20. Even if you don’t have a lot of money to spare, you can test with a small amount to get you familiarized.
Despite risks, crypto assets are growing quickly. Ensure you get a safe exchange such as Gate.io to trade and invest. As a cryptocurrency exchange with 8 years of operating experience, Gate.io has diverse coins and 700 crypto markets. In addition to spot trading, it also provides trading opportunities like spot trading, margin trading, push transactions, and ETFs. Its security and liquidity are the highest among many exchanges. Therefore, for cryptocurrency investors, especially novices, Gate.io is one of the good choices.