How to start your own crypto journey?
Cryptocurrencies are booming. And many platforms on the internet offer you to invest in these particular assets. Newbies have many questions when they want to start investing in crypto: In which coins to invest? How do I start my crypto journey? How to find a reliable platform and how to choose altcoins etc. So, in this article, we will cover all these questions and some additional tips to help you on your crypto journey from the very beginning.
What is a crypto journey?
The crypto journey represents the whole process of investing in cryptocurrency assets. It should always start from learning at least the basics of crypto before even opening your investment account. Furthermore, the crypto journey includes the choice of a trading platform, assets to invest in, i.e., the cryptocurrencies you want to invest in, and finally, the process of investing, converting fiat into crypto, etc. Let’s first take a look at what the crypto sector represents today.
Cryptocurrency and Blockchain: Definitions
Cryptocurrency and blockchain are topics of growing public interest. Although the technical understanding of these technologies requires a long-term learning process, it is possible to master the basic concepts that control their operations. There are several ways to learn the concept of cryptocurrency to invest in it effectively.
Cryptocurrency refers to cryptographic currency and peer-to-peer payment systems. Thus, these digital currencies are virtual currencies because they are characterized by a lack of physical support: coins and paper money are impossible, and it is impossible to pay by check or bank card.
These are alternative currencies whose value is not tied to the price of gold or the price of traditional currencies, nor is it subject to the control of central agencies or financial institutions.
There is no central bank on their heads. However, security and transparency are their main assets! Indeed, cryptography protects all verified and recorded transactions in the public domain and guarantees confidentiality and authenticity thanks to blockchain technology.
Blockchain is like a public transaction ledger. We say “blockchain” because each new block contains the encrypted fingerprint of the previous block. This is why a transaction is considered immutable on the blockchain. In fact, it is impossible to modify the previous block without modifying its fingerprint.
Start your crypto journey – Learning as much as possible
There are several ways you can learn more about this concept for those who are still new to this field but want to invest in cryptocurrency. Here are a few:
- Register on specialized forums.
- Follow specialized blogs/news sites;
- Subscribe to specialized YouTube channels;
- Watch movies and documentaries about cryptos
Crypto Journey – 4 criteria to consider before opening a crypto account
1. Security of the Platform
Find out more about the security guarantees on the platform of your choice. The security of your funds (euros or crypto) is the priority. The history is essential: the exchange must be completely transparent about its security measures, its accreditations, and any flaws that have existed in the past.
In general, the more demanding the registration process, the more credible the platform. Before making a deposit, be sure that you are on the platform’s official site. Always enable two-factor authentication (2FA) to log in.
Many examples of platforms offering the purchase and sale of crypto have gone bankrupt. Thus, taking with them astronomical sums stolen from investors.
2. Transaction Fees and Listed Cryptos
Have you found a safe platform to buy cryptocurrency? It’s time to compare fees. Each exchange has its own rates.
Most will calculate the commissions to be charged based on the volume traded and your level of activity. Some platforms offer decreasing fees: the more you invest, the fewer fees you pay proportionally.
You must therefore anticipate this factor by considering your objectives and your investment plan. Are you going to be an active investor who buys and sells crypto several times a week? If so, the cost of running each transaction will be key. The possibility of accessing a premium account can also be an interesting option.
The diversity of crypto tokens offered on the exchange is another factor to consider. You will have no trouble buying Bitcoin or Ether, as well as the promising cryptos of the moment since all platforms offer them. But if you are looking for more confidential and “riskier” assets, you may need to do more research.
3. User Experience
Some exchanges are more suitable than others for beginners. Coinhouse, for example, is one of the easiest to use.
Take a tour of the different pages of the site and observe how the different services offered are organized (trading, staking, sale, etc.). You will quickly notice if the exchange is intuitive enough for you or if it is more suitable for experienced investors. The documentations also provide a good understanding of the platform’s functionalities and contain information on cryptocurrencies to help you choose an asset in which to invest.
To get started in crypto investing, you don’t need fancy tools. We recommend that you start with simple actions, always with an amount of money that you are ready to risk.
Crypto Journey – Choose your cryptocurrency to invest in
The price of cryptocurrencies being, remember, very volatile, it seems logical to start your crypto journey with the most popular, those in which the public has the most confidence. Thus, Bitcoin has already proven that it is a fairly durable value – for a cryptocurrency, of course – without forgetting that its price should mechanically climb in the future.
Indeed, 21 million bitcoins were predicted when it was created, which will eventually lead to a difference between the ever-present demand and the declining supply. This should add value to this crypto-asset in the future and therefore ensure stagnation or even an increase in its value, according to observers.
But Bitcoin is far from the only one: today, Ethereum is almost equally popular, and we can also mention Ripple, Dash, Binance Coin, Lite Coin, Solana, Crypto.com Coin, Dogecoin, Shiba and others among the digital currencies known to the general public.
What you should check before investing in an altcoin
Finally, the last part of your crypto journey would be the choice of altcoins and investing in them. Suppose you want to invest in a cryptocurrency, whether Bitcoin or an altcoin, you must understand the project associated with this virtual currency. For the most famous coins, there are many explanations on the internet, but for the news, you will have to investigate:
Thoroughly analyze the currency project and read the white paper, a generally technical-commercial document detailing the specifics of the project. It can be confusing to understand at first, but if you can’t figure it out, don’t invest: the project must be transparent.
If the white paper has convinced you, ask about the team: they generally regularly publish articles on their vision of the project and updates on their progress on social networks, mainly Twitter. If they promote their currency and post regularly, that is a good sign. They must also take the time to engage with the ecosystem.
At last, if the other two points are positive, analyze the cryptocurrency itself, its usefulness, the services offered, and the intended users to see if all this will give credit to the value of the currency.
If you want to bet on an altcoin, you should therefore check that a limited number of Tokens has been decided. This is a good indicator to ensure that it does not lose its value later. For example, we already know that Dash will not exceed 18.9 million tokens in circulation and 84 million for Litecoin. This is not the case for Ethers and other cryptocurrencies, which could ultimately cause them to lose value.
Crypto Journey – Investing in cryptocurrencies
There are many ways to acquire and hold cryptocurrency.
The first step is to find the right cryptocurrency and ensure that it provides a reliable and promising project.
It is then necessary to carefully check the price of the cryptocurrency concerned in order to wait for the right moment to enter the position. Again, you need to be patient and find the right time to resell and earn income.
You can also convert traditional currencies (such as US dollars or euros) into cryptocurrencies of your choice on the platform. For this reason, many online services already exist, such as the efficient conversion of US dollars into Bitcoin.
However, you must first register on the official platform designed for this process by presenting your identity document and proof of address.
Investing in cryptocurrency results in the creation of a virtual wallet whose address is a series of numbers and which is secured by a secret code and your private key. To create this wallet, it is enough to use the services of a specialized platform.
Once you have obtained this portfolio of virtual currencies, it will be easier for you to use the services of a broker or an exchange site.
You can also download a decentralized application for free, allowing you to manage your cryptocurrency portfolio easily. Please note, however, that using an intermediary is chargeable. You have to face commissions when you trade.
