How To Invest in Cryptocurrency (6-Step Process for Beginners)

We believe that the best way to invest in cryptocurrency as a beginner is to buy great coins and hold them for the long-term. The best cryptocurrency investments don’t need to be checked daily because they are great projects, with strong technology and a powerful community. A great example is Bitcoin, which took 10 years to get from below $0.01 to $20,000.

In this article we show step-by-step beginners can invest in cryptocurrency and achieve similar returns as the pros. Let’s dive right into it!

How to invest in cryptocurrency as a beginner

Step 1: Research

As with every investment, before committing any money to it its important to properly research it. In a hyper-volatile industry like cryptocurrency, this is even more important.

We recommend getting started by understanding the basics of blockchain technology, and then exploring the different cryptocurrency categories out there to fully understand how large this world really is.

What is blockchain technology?

In this article we cover the basics of blockchain, the technology that makes Bitcoin and most other cryptocurrencies work. We know that our readers most likely don’t have a technical background so we keep things top-level and simple, don’t worry!

What cryptocurrency categories are there?

The cryptocurrency space is significantly larger, and the applications of blockchain technology go way beyond just Bitcoin. In this article we explore the 11 largest cryptocurrency categories, and why you should care about them.

Step 2: Select a cryptocurrency exchange for beginners

After you did some research and have a good understanding of what you are investing in, it’s time to pull the trigger.

Best Cryptocurrency Exchanges for Beginners

There are countless cryptocurrency exchanges out there. However, most of them are not beginner friendly and some others should NOT be trusted. In order to save you time and money, we prepared a comparison of the best cryptocurrency exchanges for beginners.

Step 3: Buy one or several cryptocurrencies

The time has come to actually buy some cryptocurrency. If you are using one of the exchanges we recommend in our list of best cryptocurrency exchanges for beginners then this will be as simple as depositing some money, and then clicking “BUY” on your cryptocurrency of choice.

Step 4: Store your cryptocurrency safely

After you bought your first cryptocurrency, you now need to make sure to keep them safe. Unlike traditional financial services, if someone steals your cryptocurrency then there isn’t much that you can do about it.

In order to keep your coins safe, you need to adopt a “don’t trust anyone” mentality, and as the past has shown, this includes cryptocurrency exchanges. Several cryptocurrency exchanges have been hacked in the past which resulted in the loss of all, or most, of its user’s funds. You are now your own bank, and you need to protect your coins like a bank would do.

Best Cryptocurrency Hardware Wallets

There isn’t a safer way to store your coins than in a cryptocurrency hardware wallet. A hardware wallet is a small device that looks somewhat similar to a USB stick, where you can safely keep your cryptocurrency. Hardware wallets are immune to hacks, and don’t cost more than $100, which is why most cryptocurrency investors chose to purchase one.

Benefits of Cryptocurrency Hardware Wallets

As mentioned in the paragraph above, most cryptocurrency investors chose to buy hardware wallets due to their security benefits. In this article we explore what exactly these benefits are.

How to keep your Bitcoin safe

For most people, Bitcoin is the first cryptocurrency they buy. In this guide we show you 5 simple tips that you can use to always keep your Bitcoin safe.

How to keep your Ethereum safe

At the time of writing, Ethereum is the largest altcoin on the market. The fact that it is also one of the most used blockchain platforms out there, it is often the first altcoin many beginners chose to buy first. In this guide we show you exactly what you need to do to keep your ETH safe.

How to keep your Ripple safe

Ripple has generated a lot of excitement because the company developing the protocol has landed partnerships with several of the largest banks of the world. Learn how to keep your XRP safe after you bought some by reading this guide.

How to keep your Litecoin safe

Litecoin is not only one of the largest cryptocurrencies by market capitalization, but also one of the oldest and most established ones. In this article we show you how you can keep your LTC safe at all times by following 4 simple tips.

Step 5: Track your cryptocurrency

Tracking your cryptocurrency is easy, and in most cases, free. We wrote an article comparing the best cryptocurrency portfolio trackers to help you find the one that suits you best.

Step 6: Stay up-to-date

If you picked solid coins that you plan to hold for the long-term, you won’t have to do daily maintenance of your portfolio. That being said, in hyper-growth industries like the cryptocurrency space its crucial to stay informed.

Best Cryptocurrency Newsletters

If you have a busy schedule and don’t have too much time to keep up with the latest cryptocurrency news, then a great way is to join a weekly newsletter that curates the most important ones for you. In this list we explore what the best cryptocurrency newsletters are, and help you decide which one is the best fit for you.

Best Cryptocurrency Podcasts

Podcasts are an excellent way to consume cryptocurrency content if you have a long commute every day, or if you enjoy listening to something while going for a walk or at the gym. Check out this list to find the most valuable and high-quality cryptocurrency podcasts out there.

Best Cryptocurrency Blogs

Although we believe to cover most of the information that a diligent cryptocurrency investor needs to know, we are aware that we can’t possibly cover absolutely everything. Check out this list to see what the best cryptocurrency blogs are in order to always stay 100% informed.