How To Invest In Cryptocurrency In 2022 – As Safe As Possible

Published by OrganicJoe on

How to invest in cryptocurrency

Are you fascinated by the bloom in the crypto industry? Do you want to invest in crypto with minimum risk and maximum reward in the safest way possible?

You’re at the right place!

A cryptocurrency is a digital or financial instrument protected by encryption, making counterfeiting or double-spending virtually impossible.

It is a virtual currency built on a network dispersed among many computers. They are distinguished because they are typically not issued by any centralized power, making them potentially impervious to government meddling or manipulation.

The term “crypto” refers to the methods used to protect these entries, such as elliptical curve encryption and public-private key pairs. They are produced using cryptographic methods that are maintained and validated by mining also called Proof of Work, (PoW). A system of interconnected or specialized hardware like application-specific integrated circuits (ASICs) verifies and validates the operation. There is also more modern, ecological and also a safe way to validate transactions which is Proof of Stake (PoS). You can read more about it here (Investopedia’s Article of Proof of Stake). We do not dive in to deep end about the technical point of views, instead we concentrate how You can safely purchase crypto and keep them safe.

Ways To Invest In Cryptocurrency

Cryptocurrencies operate on blockchain technology, a decentralized system that handles and records transactions across numerous computers. It allows for a uniform transaction record. There are two ways one can invest in crypto.

One is to invest through Crypto Exchanges, where you do not own the wallet keys yourself. While the other is Decentralized Exchanges (DEXes) which enable you to buy crypto directly into your wallet.

Crypto Exchanges

A cryptocurrency exchange is a place that allows you to buy and sell cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. They function similarly to brokerage companies with which you may be more familiar. Each provides a platform to establish various order types to purchase, sell, and speculate on cryptocurrencies with other users.

It is safe to purchase and sell cryptocurrency using the finest crypto exchange. A reputable crypto exchange allows you to buy and sell crypto whenever you want, with cheap costs and powerful safety features.

When deciding on the optimum cryptocurrency exchange for your needs, consider the supported currencies, price, withdrawal methods, and security—all of which we considered when compiling our list of the top cryptocurrency exchanges.

Security Measures: Passwords are secure until they are broken. When signing in or withdrawing assets, multi-factor authentication provides an additional degree of protection beyond the password. Two-factor authentication might take the form of a text message or an e-mail but we recommend always using an separate app which works by showing a randomly generated and frequently changing code to use for authentication. That way if your email is hacked your cryptos are safe as they can’t access to your account. Of course you can also use sms and email authentications for extra security. It might feel like a lot of hassle and inconvinience but loosing all your crypto for someone hacking your email shouldn’t be an option!

Some exchanges involve three or more elements rather than simply two. Some good examples of crypto exchanges include

1.    Binance

Binance Exchange is a well-known cryptocurrency exchange that was created in 2017. It provides crypto-to-crypto transactions in over 500 cryptocurrencies and digital tokens, including Bitcoin, Ethereum, and its own Binance Coin (BNB). Binance is also well-known for its lightning-fast trade execution. Its trading charge of 0.1 percent is cheaper than several other US exchanges.

2.    Coinbase

Coinbase provides consumers with an “all crypto, all the time” trading platform that features selections of over 50 cryptocurrencies in one location. It also offers an easy-to-use and highly functioning mobile app that lets customers purchase, sell, and manage their bitcoins from any location.

3.    Kraken

Kraken is among the earliest Cryptocurrency exchanges. It offers over 50 different coins for buying, selling, and trading at reasonable exchange rates. It is an excellent alternative for beginners and experienced cryptocurrency investors and traders seeking minimal trading costs and access to various coins.

4.    Kucoin

Kucoin is among the earliest Cryptocurrency exchanges. It offers over 380 different coins for trading and total of over 750 crypto pairs. It is an excellent alternative for experienced cryptocurrency investors and traders seeking some higher risk/reward ratio coins to trade meaning a smaller market cap cryptocurrency coins.

5.    Gate.io

Gate.io is among the earliest Cryptocurrency exchanges. It offers over 1000 different coins for buying, selling, and trading at reasonable exchange rates. It is an excellent alternative for beginners and experienced cryptocurrency investors and traders seeking minimal trading costs and access to various coins.

Decentralized Exchanges (DEXes)

A decentralized exchange is a peer-to-peer platform where cryptocurrency traders may conduct transactions without transferring their assets. Simply put, decentralized exchanges (DEXs) allow consumers to purchase and sell cryptocurrencies without the assistance of intermediaries.

While centralized crypto exchanges may request know-your-customer (KYC) information, DEXs operate on the premise of anonymity. Because DEXs are anonymous, they should be your first choice if you desire total anonymity. Your assets are always in your control with a truly decentralized exchange (DEX), removing the security vulnerabilities that affect centralized exchanges. This implies that your cash is in your hands and is significantly more secure.

Decentralized exchanges allow users to trade directly from their wallets by cooperating with the smart contracts behind the trading platform. Some well-known crypto wallets include:

1.    Hardware Wallets

A hardware wallet is a cryptocurrency wallet that allows users to store their private keys in a physically protected device. The altcoins in the wallet are kept offline, which means they cannot be hacked. The most famous ones include:

  • Ledger: The Ledger Nano X is one of the best hardware wallets available for storing your bitcoin. It is less costly than many other hardware wallets, making it an excellent low-cost, high-security solution.
  • Trezor: Aside from having excellent security, it is also reasonably simple to use and offers excellent support and upgrades. Though it might appear to be more expensive than other hardware wallets, the services you will receive are well worth it.

2.    Metamask

MetaMask is a cryptocurrency wallet that uses software to interface with the Ethereum network. It gives users access to their Ethereum wallet via a chrome extension or phone app, which can subsequently be used to connect with decentralized applications.

3.    Trust Wallet

Trust Wallet is the approved crypto wallet of Binance. The Trust Wallet mobile app allows you to transmit, collect, and save Bitcoin and many other cryptocurrencies and digital assets safely and securely.

When you plan everything carefully and learn before taking action in investing crypto you don’t have to live holding breath and worry. Photo: Pixbuster.com

Banner includes sponsor link. If you’re interested about Ledger products and want to support us, please click banner to be directed Ledger Nano X product page.

Summary

Now that you know ways how to invest in crypto it is time to plan carefully how you enter the market – buy your first crypto. As I can’t give you and you should not take any information of these blog articles as financial advice and should consult professional financial advisor before taking any action I can only tell what I do myself. Remember that FOMO is the best way to loose big time right after leverage trading – never start trading with leverage!

Main rule is that never buy green when prices sky rocket and sell red when prices dive like most of retail investors do. Trick is that you take the emotion out of it and take action at time when professional traders does. That means you wait most probably correct time to enter, it might takes months but right after prices have made deep dive (like Bitcoin does several times a year) you buy from bottom.

When you enter you just put little portion of your money (DCA) and wait to check market moves because prices can go more down so then you have money left to buy more. I will write an article of good basics when to enter crypto markets and basic strategies how to avoid worst pitfalls.

While you’re planning your enter in world of crypto I recommend you to read my article “CRYPTO & investing SCAMS and how to avoid them in 2022

Thank You for your time and you can leave me comments and feedback to teampixbuster(at)gmail.com.