Best ways to invest in cryptocurrency

15 July 2022

Cryptocurrencies have emerged as one of the most exciting new tradable asset classes in the world. What many investors don’t know, however, is that there are more ways to invest in crypto than buying just Bitcoin online. While Bitcoin still remains the most traded and popular cryptocurrency globally, there are now over 10,000 altcoins in the crypto market.

But how do you know which are the right coins to invest in? Read on to learn about picking the right crypto investments and the best ways to invest in cryptocurrency.

Cryptocurrencies explained for beginners

Before learning how to invest in cryptocurrencies, it’s imperative to understand what cryptocurrency is and how it works. Cryptocurrency is a digital currency or asset that operates on a cryptographically secured, decentralised peer-to-peer blockchain network that enables the trustless recording, storing, and transfer of data.

Today, there are thousands of cryptocurrencies available in the market. So, how do investors pick one that is worth investing in? Let’s that a look at that next.

How to pick a cryptocurrency to invest in?

Before getting started with investing in a cryptocurrency, conducting some research is essential. Follow this checklist below to deep dive into a new coin that might pique your interest:

Once there is a good understanding of what a cryptocurrency is all about, investors can formulate an opinion on it and decide whether it should be in their investment portfolio or not.

How to invest in cryptocurrency?

In the early days of crypto, investors could only invest in cryptocurrency by buying it online on largely unregulated exchanges. Today, there are numerous ways to invest in cryptocurrency.

Let’s take a look at the most popular:

Best ways to invest in cryptocurrencies

There are various ways to invest in cryptocurrencies. Below, we take a look at four ways that any traders can use to invest in crypto.

With the recent rebrand of Facebook to Meta, and their exploration into the Metaverse, large globally recognised organisations are becoming more and more open-minded on the technology behind crypto.

Advantages to investing in cryptocurrency

While investing in cryptocurrencies is high risk, crypto can be a great investment opportunity. 

Disadvantages to investing in cryptocurrency

While crypto offers excellent investment opportunities, there are also disadvantages when it comes to investing in this new digital asset class.

FAQ

How much money do I need to start investing in cryptocurrency? How much money an investor needs to start investing in cryptocurrency largely depends on the exchange or trading platform they plan to use, as different exchanges have different trading minimum requirements. For instance, one exchange can have a minimum trade of $5 while another can have a minimum trade of $20. While the minimum trade might seem affordable, factor in transaction fees. Some exchanges might take a bigger chunk out of investments as fees, especially, when users are trading small amounts of crypto. When trading crypto as a CFD, the use of leverage means you can gain exposure to a larger amount with less capital. But of course, leverage is a double-edged sword, as it can magnify both wins and losses.

What cryptocurrencies are professional investor’s interested in? Below are three of the most popular cryptocurrencies in the current market, all with a stable position in the top 10 crypto coins by market capitalisation. 

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