Crypto Crew
08.08.2022

Investing in cryptocurrency

Investing in cryptocurrency

Contents of this article:

Is it possible to make money investing in cryptocurrency? Of course, it is one of the promising types of investments that allow you to earn good money. Investors are investing in virtual assets despite the high risks, and you can do the same.

Cryptocurrency investment methods

Cryptocurrency investments are made in several ways. The main types of investment are to:

  • Buy and store. Long-term investments in the TOP cryptocurrencies for investment give high chances to increase capital.
  • Invest in cryptocurrency companies. You can buy not just a crypt, but invest in mining companies.
  • Invest in funds. Cryptocurrency funds are engaged in investments and trading.
  • Lend coins. Cryptocurrency can be put into a liquidity pool, a kind of deposit, and receive interest for storage.

How to choose a coin: TOP cryptocurrencies to invest in 2022

Assessing the prospect of cryptocurrency for investment is not so easy. You can study the price dynamics of popular coins over the past years and see that all cryptocurrencies have had ups and downs. The problem is to predict whether the price will go up or down. Fundamental and technical analyzes help specialists to choose an asset for investing money correctly.

If you are not yet familiar with the analysis, pay attention to the top coins with high liquidity. Some of the most popular today are:

  • Bitcoin is the first cryptocurrency, which is used for long-term investments more often. The price is changeable and inconsistent, but the demand for the coin is always high, and will be so in the coming years.
  • Ethereum is the most popular alternative to Bitcoin. Ethereum developers strive to create a decentralized set of financial products available to anyone, regardless of country of residence, profession, social status. Coin quotes also fall and rise sharply, and interest in it is constantly growing.
  • Binance Coin is a coin supported by the Binance exchange. Its rate does not correlate with the prices of other cryptocurrencies, so it is less subject to sharp fluctuations in value.

These are just a few popular and valuable coins, but there are more promising cryptocurrencies for investment in 2022. You will be able to analyze the market yourself and choose profitable assets for investment deeply immersed in the study of the field.

Cryptocurrency investment process: where to start

Before you figure out how you can make money on investing in cryptocurrency, you need to buy it. One of the fastest and easiest ways is to buy a coin on an exchange. How to do it:

  1. Select an exchange. Give preference to well-known and popular sites with a large assortment of cryptocurrencies.
  2. Sign up. Go through verification to verify your identity after creating an account.
  3. Top up your account. Your account must have ordinary money, dollars, euros, hryvnias or other currencies.
  4. Place an order to buy crypto. The algorithm for placing orders is different, depending on the exchange, but on all popular sites this procedure is simple and takes a minimum of time.
  5. Store it in a digital wallet after purchasing a suitable coin. Your wallet can be hosted on the exchange itself or hosted by an independent wallet provider such as MetaMask or Electrum.

Pros and cons of investing in cryptocurrencies

There are many advantages to investing in crypto. The main ones are high demand for virtual assets, due to which their price is growing, and resistance to devaluation. Also, crypto has an additional benefit, unlike stocks, for example, it can be used to pay for certain goods and services.

The disadvantages include volatility and price volatility, which is why you have to constantly monitor quotes. In order to make money on investments in cryptocurrency, and not lose your invested capital, it is important to analyze the market, choose the right moments to sell or buy assets carefully.

You will learn in Crypto Crew where to start investing in cryptocurrency and how to invest money wisely. Our team has developed a course on investment and trading. We know how to make money on crypto efficiently and simply, and we are ready to share our knowledge with you.