Today, cryptocurrency investments have been designated a get-rich-quick scheme. Nonetheless, there is much more to crypto investments than simply getting rich overnight. Investing in cryptocurrency means buying a digital currency created uniquely. Unlike the Dirham, Dinar or Dollar, this virtual currency is not created by the government or central bank. Rather, their creation is through a decentralized technological process, with no control or operation by any single entity. By investing in cryptocurrency, you expect the currency to grow and outperform as time goes on. Afterwards, as they grow in value and other investors are interested in purchasing, you sell higher than you purchased, thereby earning a profit.
Crypto investment is a long-time game. Although bitcoin is the most popular virtual asset today, it is important to own a diversified portfolio and remain invested, despite the highs and lows of the market. For instance, bitcoin rose to as high as $28,000 in December 2017 and fell by 83% to $3900. Shockingly, by 2021 this same coin hit a $66,000 all-time high. Therefore, although the market is volatile and experiences sell-offs, it is not a bad idea to buy and hold.
As a beginner, the best time to start investing in cryptocurrency is now. Here is how to invest in crypto in four steps:
- Choose an investment platform
You need a credible crypto exchange to buy and sell from to invest in cryptocurrency. CoinMENA, Rain, Matrix, and BitOasis are popular and reputable exchanges in the Middle East.
- Learn the types of cryptocurrencies and diversify
This is an essential part of the investment journey. While bitcoin, Ethereum, dogecoin and BNB are quite popular, there are about 8,000 other cryptocurrencies to invest in. But don’t worry. Investing in crypto need not be complex. First, check the historical performance of coins to understand their volatility. This information is on the exchange and should guide your investment strategy.
- Read the White Paper
Every credible cryptocurrency must have a white paper, and where there isn’t any, it could be a sign that it is fraudulent. For example, companies trying to sell their shares are expected to have a prospectus, and the equivalent of this in crypto is the white paper. This marketing document contains information on the product or service, the developers of the project and the vision behind the project. Whitepapers are located in the white paper database and should be your first stop to confirm the legitimacy of a coin.
- Join online Cryptocurrency Platforms
If you are new to investing, platforms like Twitter, Discord and Telegram have numerous crypto communities where you can learn from enthusiasts. Don’t take the journey alone and look to tap into a community where you can learn the technical skills for excelling at the game.
In conclusion, you may choose to be a daily trader or invest long-term. If you are the latter, it is helpful to avoid compulsively checking your coins numerous times every day. As you continue on your journey, keep researching and following industry news.