Cryptocurrency - such a cryptic concept, no? When I first entered the world of Crypto, I was pretty confused about it as a whole. I had no idea about how blockchain technology works or how it controls the ecosystem. Heck, I didn't even know where to begin when making an investment.
But then I started reading and doing a little bit of research on the market. And, somehow, it helped me untangle every knot of confusion I had regarding the subject. However, it took me around a year to do so, and I'm sure you don't want to wait that long. So, in this article, I've shared exactly how I started investing in Cryptocurrency.
Just give it a go and let me know if it has helped you or not.
What Is Cryptocurrency?
Don't worry. I'll surely give a touchdown to your query on how to invest in Cryptocurrency in Australia later. But, for now, let's focus on the basics first.
Theoretically, Crypto is a virtual currency collected and distributed online. In reality, though, it almost works like the stock market. You cannot hold it physically. But you know that it's there. And, like stocks, they can also gain or lose value on the go. Take Bitcoin, for example.
In October 2021, it reached an all-time high in terms of value at USD 61,374.28, according to Statista. Nonetheless, since then, the price of the same has kept dropping, and now it stands at USD 20,367.89 (approximately). And it might fall even more in the latter half of 2022.
So, as you can see, the Cryptocurrency market is changing quite constantly. And due to such volatility, most people tend to avoid investing in the market. But! I don't want you to get discouraged just by seeing the numbers. If you're patient and capable enough, you can perform the price prediction correctly and earn a fortune from the Crypto market… as long as you know what you're doing.
Investing In Crypto - Touching The Basics
Making an investment in Cryptocurrency should always begin from a common starting point - by choosing the right Crypto coin. As a beginner, most people don't think even twice before putting all their money into Bitcoin. But that's not what a pro would do.
Hence, before you make an investment, always focus on choosing something suitable for you. For example, BTC is the right option if you want to make some quick money. Its price is currently increasing and decreasing simultaneously. So, you can always keep your eyes on the trends, see when the price is at its lowest-low, and invest in it.
Whenever the price rises again, you can simply sell whatever you have on your account and get some extra money. Simple enough, right? But if you're focusing on the future and don't have enough money, you can also try investing in Ethereum or Solana. The price of both of them is rising gradually and, in my opinion, can fight against BTC for the throne.
Considerations To Make Before Investing In Crypto
You have chosen the right Cryptocurrency suitable for your purpose, right? So, let's move on to the next part and see what you should consider before making an investment.
What You Should Consider - 1: Start Slow And Steady.
Whether it's the stock or Crypto market, you should always start as slow as possible. Invest as low as you can at the beginning and see how the market is doing.
If you feel like the segment will go up in price after a while, you may invest even more. Or, if you think that it'll go down, just hold whatever you have for now.
Oh, and don't panic and sell everything whenever you see that the price is going down. The market will rise again after a while. So, be patient and hold on.
What You Should Consider - 2: Keep It "Diversified."
As a beginner, the urge for tribalism and putting everything in a single segment will be high. But you'll have to be careful about it and try to diversify your portfolio somehow.
This way, even if one of the markets crashes down, you'll still keep earning money from your other investments. And it might help you avoid getting scammed, too.
Also, the more you diversify, the higher your chance will be to earn more money, especially if you're lucky. So, that's something to keep in mind as well.
What You Should Consider - 3: Create A Roadmap.
Becoming a successful Crypto investor is all about planning your every move beforehand. It can help you read the market more efficiently and ensure you're not making silly errors.
Also, when you have a roadmap in front of you, it'll be easier to stick to a routine. Even if you want, you won't end up spending more because you're aware of what might happen in that case. So, it's a win-win situation for you.
What You Should Consider - 4: Focus On The Timing.
When it comes to investing, you should always put all your money on a coin when its price is at its lowest. Thus, when the price of the same rises again, you’ll be able to earn quite a bit of cash by selling the same.
However, before investing, you should always ensure that the price of the currency is bound to rise in the future. It can be done by following the pricing trend of the product or following a professional investor or two in the market.
What You Should Consider - 5: Long-Term Is The Keyword.
The market of Cryptocurrency is quite volatile. Therefore, if you want to earn money in this segment, you’ll need to invest in the same for the long term.
During the whole period, you might experience some of the lowest lows in terms of profit or something like such. In some cases, you might even take years to regain what you’ve lost. However, as long as you’re diversifying your investment and making the right move, you’ll be better off with a long-term acquisition.
Be Careful, Be Attentive!
The Cryptocurrency market tends to change pretty constantly. Hence, if you're not attentive enough, it won't be possible for you to adapt to the new norms. Also, if you're using an online exchange platform, I'll ask you to be careful with your keys. Don't share their information with anyone.
And, don't forget your password! It might get your account banned for the rest of your life. And, you'll end up losing everything you had worked for until now. Good luck!
