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The Best Crypto To Invest In 2024: Complete Guide

April 29, 2024

Introduction

We are living in a rapidly evolving and progressing world. In the last 10 to 20 years, technology has surpassed every expectation that humankind had for the 21st century. One of the biggest advancements in the past decade is cryptocurrency. As you already know, investing in crypto can be very profitable, which is why we are here. Blockchain technology has a lot to offer, and that’s a good thing from an investment perspective. By investing in crypto, you are not just investing in a monetary value, but in a technology that could potentially change the way we live our lives.

The concept of Cryptocurrency

Cryptocurrency is a type of digital asset that is based on blockchain technology. But what does that mean exactly? Well, think of it like a fancy receipt that everyone can see but nobody can change. It’s a digital record of ownership that can be used to buy things or invest in, but instead of being stored in a bank, it’s tracked on a giant public ledger called a blockchain. In simple terms, a blockchain is a decentralized database that keeps track of all the transactions made with cryptocurrency. This makes it secure and almost impossible to hack.

Here’s a breakdown:

• Cryptocurrency: Think of it like digital coins. They exist only on computers and can be used to buy things online or trade for other currencies. Bitcoin is the most famous one, but there are many others.
• Blockchain: This is the magic behind crypto. It’s a digital record of every transaction involving a specific cryptocurrency. Every computer on the network has a copy, making it nearly impossible to cheat or counterfeit.

So, unlike physical cash that can be lost or stolen, cryptocurrency transactions are secure and transparent. That’s the basic idea!

Don’t jump in headfirst: Understanding the Risks of Crypto Investing

The world of cryptocurrency can be thrilling, with stories of explosive growth and potential for high returns. However, it’s crucial to understand the inherent risks before diving in. Here are some things to consider:

• Volatility: Unlike traditional stocks or bonds, cryptocurrency prices can swing wildly in a short period. Be prepared for significant ups and downs, and remember, there’s no guarantee your investment will increase in value.
• Unregulated Market: Compared to traditional financial markets, cryptocurrency is largely unregulated. This means there’s less protection against scams, hacks, and market manipulation.
• Technical Challenges: Understanding how to store your crypto securely and navigate exchanges requires some technical knowledge. Mistakes can lead to lost funds.
• Emerging Technology: Cryptocurrencies are still a relatively young technology. The long-term viability of some projects is uncertain, and regulations could evolve significantly in the future.

Research is important!

Due to these risks, thorough research is essential before investing in any cryptocurrency. Don’t rely solely on social media hype or tips from strangers. Dig deeper and educate yourself!

• Understand the project: Research the purpose, technology, and team behind the cryptocurrency. What problem does it solve? Who’s developing it?
• Read reputable sources: Seek out articles, guides, and information from trusted financial websites and publications.
• Join online communities: Engage with established cryptocurrency forums and communities to learn from experienced users. However, be wary of unsolicited investment advice.

By approaching crypto investing with a cautious and informed perspective, you’ll be better equipped to navigate the potential risks and make sound investment decisions.

You’ve surely heard of Bitcoin, what about other Cryptos?

The world of cryptocurrency goes beyond just Bitcoin. Let’s delve into some of the most common types you’ll encounter:

• Bitcoin (BTC): The OG of cryptocurrencies, Bitcoin was the first and remains the most well-known. It functions primarily as a store of value, similar to gold, and offers a decentralized payment system.
• Ethereum (ETH): While also a valuable asset, Ethereum goes beyond just currency. It’s a platform that allows developers to build applications on its blockchain, making it a more versatile player in the crypto space.
• Stablecoins (USDT, USDC): Unlike other cryptos known for their volatility, stablecoins are pegged to real-world assets like the US dollar. This reduces the price swings, making them ideal for transactions without the worry of sudden drops.
• Altcoins (Alternative Coins): This broad category encompasses all cryptocurrencies other than Bitcoin. There are thousands of altcoins, each with its unique purpose. Some aim to improve upon Bitcoin’s technology, while others focus on specific industries like decentralized finance (DeFi) or non-fungible tokens (NFTs).

Think of it like this:

• Bitcoin – The digital gold standard, a secure way to store value.
• Ethereum – The app store of the crypto world, allowing for innovation and diverse applications.
• Stablecoins – Crypto with training wheels, offering price stability for everyday transactions. (USDT for example)
• Altcoins – The wild west of crypto, offering a vast array of possibilities and potential, but also accompanied by higher risk. (These include meme coins, and other more volatile investments, like PEPE and SHIB)

Investing in Crypto: A Step-by-Step Guide

Now that we have a grip on the theory basics, it’s time we head into the investing itself. This is the hard part, but worry not, it gets easier, it just takes time. The first and foremost tip I could offer you, is that you think through your every move, A few are the ones that YOLO’D into investing and got huge returns, think about it like this, those people are the only ones we hear about, what about thousands of people who lost their entire savings? Like stocks, crypto can be a volatile market, if you don’t think it through, it’s all about strategy.

Choose your Crypto-currency Exchange

If you haven’t heard of Cryptocurrency exchange, it’s high time you learn that cryptocurrency exchanges are companies, that facilitate your trading for you, with them, you’re exchanging your Fiat money for crypto. There are lots to choose from nowadays, and if you’re wondering what’s the best one for you, the answer is..inconclusive. Because it depends on what you invest in, for how long, and how much, as well as many other factors. I’m going to recommend a few of the most popular ones, but in the end, it is up to you to choose the one that best fits your needs. Research people, research! 

• Binance
• CEX.io
• Coinbase
• Kraken

Think of cryptocurrency exchanges as similar to stock markets like those in New York, as they regulate everything about your trading..

Setting up a secure Crypto wallet

Congratulations on successfully choosing a cryptocurrency exchange! You’ll be pleased to know that most, if not all, exchanges have integrated wallet structures that allow you to store your cryptocurrencies directly within their infrastructure. However, if you’re particularly mistrustful of exchanges, there’s good news – hardware wallets exist! These are physical drives that use blockchain technology to store your cryptocurrencies within a device that only you have access to. Alternatively, there are software wallets that you can store on your PC or phone, which are independent of exchange regulations.

Understanding How to Buy Crypto: Order Types and Smart Strategies

Congratulations, we are almost at the end. You have learned the basics, chosen your crypto exchange, and made a wallet to store your valuable assets. Now that you have done your research and selected a promising cryptocurrency, it’s time to make your first investment. However, before diving in, it’s crucial to understand the various ways you can buy crypto and how to approach investing strategically.

When buying crypto on an exchange, you have two main order types to choose from:

• Market Order: This is the simplest option. You tell the exchange how much cryptocurrency you want to buy, and the exchange fulfills your order at the current market price. This is a good option if you want your order filled quickly, but you might not get the best price.
• Limit Order: Here, you have more control. You specify the price you’re willing to pay for the cryptocurrency and the amount you want to buy. The exchange will only execute your order if the market price reaches your specified price point. This ensures you get the price you want, but there’s no guarantee your order will be filled, especially if the market price moves quickly.

Think of it like this:

• Market Order: You’re saying, “Give me however much crypto I can get at the current price.” (Fast but potentially less precise)
• Limit Order: You’re saying, “I only want to buy crypto at a specific price or lower.” (More control but might take longer)

Please remember that you should never invest your entire life savings! Always and always think about it this way. Think to yourself, do I need this money right now? If the answer is no, then good, you’re ready to invest. If not, don’t expect miracles, most of the time people dream of miracles only to end up losing everything because of a miscalculation, so please only do this if you’re ready to part ways with your money. Remember to diversify your portfolio (your assets), don’t put all of your eggs in one basket, and choose several “good” options, why not? By doing it like this, you lower your chances of failure.

Read some more:

• Cryptocurrency Explained With Pros and Cons for Investment
• The Ethereum Foundation Blog
• Coindesk – A leading cryptocurrency news platform offering breaking news, market updates, and in-depth analysis from industry experts.
• r/Cryptocurrency on Reddit– A massive online community with discussions and information on a wide range of crypto topics. Be careful and do your research before taking any investment advice here.

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In Conclusion: Responsible Investing is Key

The cryptocurrency market is highly volatile and unpredictable, which means that there is no guarantee of success. It is crucial to invest only the amount that you can afford to lose and to diversify your portfolio beyond just cryptocurrency.

The world of cryptocurrency is ever-changing and exciting, so it’s essential to embrace the learning process, utilize the available resources, and approach your crypto journey with both a thirst for knowledge and a cautious mindset. By following these steps, you will be better equipped to make informed decisions and navigate the exciting potential of cryptocurrency.

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