Tips on How to Invest in Crypto as a Beginner

December 13, 2021 Quick read

The popularity of cryptocurrencies has been on the rise in recent years, which has increased the number of investors interested in investing in crypto, who see crypto as an opportunity to expand their portfolios. Investing in cryptocurrencies tends to be made through unconventional channels. In this article, we will show you how to invest in crypto and you will learn other cryptocurrencies sectors.



Methods to Invest in Cryptocurrencies

Here are the four simple methods on how to invest in crypto as a beginner.

      Buy the cryptocurrency when Dipping

Buying cryptos when they dip is perhaps the most recommended method of investing in cryptocurrencies, since the investment process is much simpler, although, as they are essentially digital assets, you should make sure to keep them properly with all possible precautions. You can buy real cryptocurrencies on platforms such as:


      Centralized cryptocurrency exchanges.

      P2P shopping sites.

      Decentralized exchanges.



      Through ETFs

One of the most relevant events in the history of cryptocurrencies was their institutionalization and, thanks to this, another method on how to invest in crypto is through ETFs (Exchange Traded Funds) that are already being introduced in the market.


These are funds that replicate long-term investments so that when you buy these ETFs you are actually buying a package of specific stocks that allow you to diversify your investment.

      Invest in CFDs

You can invest in crypto through CFD brokers, fully regulated entities that must follow compelling security requirements. This is what makes many investors decide to bet on this method.


When you invest in CFDs, you are not investing in the asset itself but a derivative contract between you and the broker. This makes the investment more secure in terms of hacking or theft. But you have to make sure you choose the right broker.

Keys on How to Invest in Crypto

And now that you are clear about some of the basic concepts about how to invest in crypto, we will give you some keys that you should consider before getting down to work.


      Learn on how to invest in crypto before investing

If you want to be successful in investing in cryptocurrencies, you must prepare for it. As you have seen throughout this guide, you will have seen that investing in cryptocurrencies is not the same as investing in traditional financial assets. It has added difficulties.

And it is that investing without the proper training can lead you to lose everything invested.


      Don't reverse everything at once

We strongly advise you not to invest suddenly. It is much better to choose a monthly amount that you feel comfortable with. It is an excellent way also to get the ups and downs of assets right. In our opinion, the best option is to invest sustainably over time.


      Invest for the long term

It is a colossal mistake to think in the short term constantly. Amplify your vision of the market if you want to make money with cryptocurrencies. If you start, you will see that there are periods of noise and uncertainty that you must flee to focus on the uphill phases.


       Create a diversified portfolio

It is highly recommended to create a diversified portfolio that includes cryptocurrencies and other options such as stocks or bonds. In the same way, you can invest most of it in the most stable cryptocurrencies (such as Bitcoin or Ethereum) and the rest in cryptocurrencies with other significant potential, such as Monero, Cardano, etc…


       Take security measures

You always have to be very aware of the dangers of lack of security, but any precaution is little when there is money involved. Remember that, as we have said, cryptocurrencies do not depend on any institution, which means that you are solely responsible for protecting your money.


       Use wallets for your cryptocurrencies

These are cryptocurrency wallets where you will keep these assets, from where you send and receive them. Yes, blockchain technology is incredibly secure, but there have been countless hacks since the birth of Bitcoin. So, if you keep them safely in your wallet, you will keep your investments safe.


       Watch your emotions

When you see that a cryptocurrency begins to increase in price, you are dying to invest in it but avoid doing it this way by all means because it is likely that when you go to buy the price, it will correct itself, and you will be trapped in losses.

Instead of being guided by your emotions, create an investment plan and stick to it.


      Choose wisely when to sell

There are two circumstances in which we consider it to be an excellent time to sell:

·       When you have another more promising investment in mind.

·       When the conditions that justified your investment have changed (the leadership of Bitcoin, for example).

Anyway, we recommend that you do a good thorough analysis first.


Similarly, you should not sell if; the value of the investment drops considerably