In the first part of our guide, we gave you some primary information about cryptocurrencies and crypto-wallets. We've also talked about the functioning process of cryptocurrencies, and now it’s the turn for talking about how profitable investing money in cryptocurrencies can be. But first, let’s learn about the platforms that are going to help us put our money in successful projects.
Top 5 crypto exchanges for beginners
If you are new in this world of various cryptos and you try to do your first steps, you’ll need to find a platform that is easy to navigate and understand. That’s why we have gathered a list of the best crypto exchanges for newbies.
Binance is the most popular exchange presently. It suits both and advanced users and beginners. Its UI has an option of switching between modes, which makes it user-friendly. It ranks in the top 5 exchanges on CMC by volume, so you can be sure you won’t face liquidity. KuCoin is an exchange which gathers a lot of attention in the last 6 months. It’s not surprising cause it has a very easy-to-use UI. Tips for beginners: owning this exchange's native coin - KuCoin Shares - gives you some extra passive income in the form of an exchange fee. Changelly exchange is thought to be the easiest to use. It’s very inexperienced to swap supported currencies between each other via this platform. Changelly supports over 35 crypto and some fiat currencies. We have already told you about the Coinbase wallet, now the exchange’s turn has come. You can simply deposit your fiat money and get the cryptos you need. It’s also very loved because it gives an opportunity of buying currencies using credit cards.
Another website with a good reputation is CEX.io. They made compliant UI for beginners, and also their past track record is prepared pretty well. Like Coinbase, you can deposit with fiat money and get Bitcoin, Ethereum, Stellar, Ripple, and Bitcoin Cash.
Creating an account on an exchange
Now when you know about some immense exchanges for newbies, you can choose one of them (or any other you wish) and start the process of creating an account.
Just like creating an account on social media, here also you will have to provide an email and a password. The variation is that crypto exchanges are applying KYC to make all the processes on the platform more secure.
As it was said above, centralized and decentralized exchanges have some differences. So, if you have chosen a centralized exchange, be prepared to give credit card information and, in the case of a decentralized one, make sure you have an Ethereum wallet.
Benefits of investing in cryptocurrencies in today’s world
There are two main benefits, that can be a trigger for you to invest in crypto:
The first is the potential to make a tremendous profit. What makes cryptocurrencies such a profitable investment? Their extreme volatility. The return on investment for crypto is exceptional for percentage increases. But putting your money in the wrong coins at the wrong moment will see you having correspondingly huge losses.
And the second one is that cryptocurrencies are impossible to counterfeit. All of the transactions are recorded on the ledger, so no one can modify transaction history, of course, someone can make changes locally, but the consensus algorithm will find the mistake in several minutes.
Best cryptocurrencies to invest in
Some of you may think of Bitcoin while reading this, and it’s understandable because BTC is the leading crypto for a long time already. But a lot of experts nowadays insist on buying some other alternatives instead. Here’s a list of coins some professionals of the sphere recommend to put money in:
Bitcoin - the apparent position. This coin has already confirmed that it is trustworthy, so if you are a newbie in buying cryptocurrencies, just get some Bitcoins.
How to Invest in Bitcoin?
For investing in Bitcoin (actually, in any currency), you will need to have a wallet to be able to store the coins you are going to obtain. Then you will have to find an exchange, which supports Bitcoin (nowadays, you will rarely find one that doesn’t). Create an account on the exchange, and that’s it. You’re ready to invest in Bitcoin. The second way to get Bitcoins is mining, but it’s quite more arduous than the first option. For becoming a miner and owning Bitcoins, you’ll have to spend a lot of money on computing power to have suitable machines for the process.
Litecoin - The main reason for investing in this cryptocurrency is that the number of retailers who accept LTC is growing day by day. Moreover, it has a more accelerated block formation and transaction verification than Bitcoin.
How to invest in Litecoin?
The best way to obtain LTC is to register an account on a crypto exchange, deposit other cryptocurrency or fiat currency (if you have chosen a centralized exchange), and exchange it for Litecoin. The most profitable scenario for this coin is holding it till the price raises.
Ether - it is solicited by developers, who’re looking for a means to built and manage applications inside the Ethereum platform, or by investors who are trying to make purchases of other digital currencies using ether.
How to invest in Ethereum?
The required thing for investing in Ether is owning a digital wallet. You can choose any of the platforms we have mentioned above to buy ETH. You can either swap it for fiat currency or a crypto coin. Remember that you are putting your money in currency, and there are no payouts or dividends in this case.
Zcash - the decentralized coin was launched in 2016 and looks very promising. The advantage of the coin is the feature of shielded transactions, which gathers a lot of attention from crypto enthusiasts.
How to invest in Zcash?
There are four easy steps you need to do to get Zcash: get a Zcash wallet, locate your transparent address, find an exchange that supports the coin (CEX.io that we have told you about is one of them), and purchase the amount you need. An alternative way of getting Zcash is Coinbase, which offers a brokerage service. This one is more simple but more expensive.
Dash - This coin is an undercovered version of the original Bitcoin, and formerly it was named Darkcoin. It was launched in 2014 and had a very active increasing number of fans.
How to invest in Dash?
Get a cryptocurrency wallet of any type you wish. Buy a Dash in an exchange that trades the currency. Two options are still working: you can use other cryptocurrencies or just fiat. Transfer your Dash coins to your wallet.
Ripple - This is a coin that has no mining feature, and it decreases computing power usage by this. The coin start was announced in 2012, and since then, it provides cross-border payments for banks and other institutions.
How to invest in Ripple?
Today it’s not very easy to buy XRP you’ll have to follow some strict rules. You will need to create a Ripple account on one of the recommended exchanges (Bitsane is the most popular choice), get the second account on Coinbase or another alternative exchange (this is done because you can’t send money to any Ripple exchange directly, so you have to own a second account on other exchange), buy Ethereum or Bitcoin on Coinbase, transfer the purchased coins to Bitsane, and buy Ripple from here. The process may seem very complicated but results worth this.
Strategies for getting more money
So, when you have already purchased coins, it’s evident that you would like to increase your profit. Some strategies experienced investors use:
- Get and hold crypto coin as long as its price rises enough
- Buy and hold cryptocurrency for dividends
- Run master nodes
- Day trading cryptocurrencies
- Stake cryptocurrencies
- Mining (Note: as we already mentioned above, not all the coin can be mined)
Here we gave you useful tips for navigating in the universe of cryptocurrencies and be confident that there are methods of making a vast profit from your crypto investments. But we want to mention again that you'll need to do your research before putting your funds in any project, so you’ll understand all the little details and make maximum benefit from your money.