I still remember the day I wanted to invest in cryptocurrency and had to google it and go through pretty complex articles to understand it. Misinformation and confusing terms almost had me. When I first read “HODL” I was thinking it was a misspell of Hold – if you’re also confused, let me guide you through. Believe me, it is a lot easier than you think.
related: TOP 5 NFT Marketplaces to Buy NFTs in 2022
I have divided this article into two main parts:
- Before Investing -In this part, we will try to understand cryptocurrencies and answer the most important questions.
- Buying – In this part, we’ll learn to buy a cryptocurrency and discuss when and how to buy and sell it.
Before Investing
Fundamental and Technical Analysis
Choosing the right crypto to trade or invest in is very important because you can end up buying a scam or Rug pull project. If you are not aware of what a rug pulls you read our detailed article here.
The fundamental analysis is the in-depth study of a coin to know if it’s worth buying or not. Reading whitepaper, checking tokenomics and several other things can help us check the authenticity of the project. The next part is doing the price analysis with the help of historical data to predict the future price. We have covered Technical Analysis in detail in this article.
Choosing the right Platform
Choosing the right exchange to buy cryptocurrency is very important and you should keep the following points in mind:
- The exchange should have a user-friendly interface with the necessary tools available. When you’re a beginner, too many options and a complex interface can be problematic.
- The next thing you might want to focus on is the trading fee. The lower the fees, the better it is. Binance has minimum fees if you’re wondering.
- KYC or Know Your Customer is the feature that allows exchanges to collect user information to provide the services and adhere to the local laws. Crypto users can trust the exchanges that implement KYC.
We have covered a detailed article that compares the top exchanges in 2022. You can read that here.
Buying Cryptocurrencies
Buying cryptocurrencies has a different approach. One way is to buy from cryptocurrency wallets and the other is to open an account on an exchange and buy from there. In this article we’ll be focusing on the second approach, Buying from cryptocurrency exchange Binance, which has a user-friendly interface and it offers huge trading options with the lowest possible fees.
Transferring funds
- Sign up for Binance and after necessary KYC, click from the top left tab on Buy Crypto and choose the deposit option.
- Binance offers a wide number of options to buy cryptocurrencies and you can choose whichever suits you.
- For the sake of this example, let’s just choose a credit or a debit card.
- You can directly buy the cryptocurrency at the market price or buy stable coins to trade them for your favorite coin at a relatively lower price.
We will cover in detail how to manage your portfolio, how to place limited orders, and use stop loss and will try to understand risk management in our next article.
Conclusion
Cryptocurrencies involve high risks and the risk factor is higher when you are just a newbie. Try to understand the market, learn the important terms and techniques and then experiment with a small amount. Cryptocurrency trade is a test of your greed and fear and if you can overcome these two factors, you’re more likely to succeed in this area.
Happy Trading!
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sources: binance
author: Rene Remsik, mnmansha
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
