Learn coin investment guide for beginners is an indispensable starting point for those who want to learn about the virtual currency investment market. To build for themselves a methodical strategic plan before entering the game, investors definitely need to equip themselves with solid knowledge. Therefore, in today's article, we will share with you how to play coins and make money, the most effective way to invest coins for beginners!
Overview Process – A Beginner's Guide to Investing in Coins
When learning a beginner's guide to investing in coins, players need to learn the first basic steps, to clearly visualize the process of getting started to help you play coins and make money. Before diving into other market knowledge, investors need to know what steps to take when starting to play coins. The process goes through the following steps: Choose a place for you to trade, Create an account, How to deposit cash, Choose Crypto to buy, Choose a storage method.
Step 1: Search and choose a place to trade
To learn about the beginner's guide to investing coins, you need to learn about where to trade first. To play coins for money, we definitely need to choose a place to trade. Here are 2 optionseach type will have its own specific characteristics, specifically as follows:
Coin investment guide for beginners- Cryptocurrency exchange
An electronic exchange is a place where you can buy and sell coins directly with other buyers and sellers in the market. When you join directly at a crypto exchange, it will only cost you a very low fee. However, the interface or trading buttons are not simple, beginners need time to get used to the buttons when trading.
Investors when learning the guide to investing coins for beginners, can pay attention to learn about exchanges such as Bibit, Gemini, Coinbase,…But note that, when choosing a cryptocurrency exchange, you should choose exchanges that allow buying crypto with fiat.
Coin Investment Guide for Beginners – Choose a Broker
Cryptocurrency brokers can also be a good choice for beginner investors looking for a place to trade. When participating at a cryptocurrency broker, players will be able to operate more easily and understandably. However, the fees at cryptocurrency brokers are much higher than in live exchanges. Investors can refer to two reputable brokers such as Robinhood, Sofi, ...
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Step 2: Create a trading account
Once you have determined your destination and selected a reputable exchange, the next step is to open a personal account to start trading. This step is quite simple, you just need to visit the exchange of your choice, provide information and identify them, follow the required steps, to be able to successfully create an account.
Step 3: Deposit money to trade
To learn about coin investment guide for beginners, next you need to know how to deposit to trade. You will need to deposit cash into the exchange of your choice in order to redeem for cryptocurrencies. Deposits can be made through your bank account, so prepare a bank account with internet banking registration. At this step, we recommend that you do not use a credit card. Usually credit card issuers will give you an advance for consumption, but with an interest rate attached. So the best, we do not abuse credit cards, to play coins to make money. After successful deposit, investors can buy cryptocurrency.
Step 4: Select Crypto to buy
On the cryptocurrency market today, there are hundreds of cryptocurrencies for you to buy. However, you need to focus on learning the two most popular types today, which are:
- Bitcoin (BTC)
- Tether (USDT)
- Ethereum (ETH)
- Binance Coin (BNB)
- Cardano Coin (ADA)
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Step 5: Choose how to store
As a final step when learning a beginner's guide to investing in coins, you should be aware of how to store your money. When joining a cryptocurrency exchange, you must anticipate the risk that the exchange may also be at risk of being hacked. You will be in a situation of losing money, if there is no safe haven for your money.
If you choose an exchange as a broker, you are required to keep your funds in the electronic wallet of that broker exchange. If you choose direct exchanges, there are two ways to help you move your money to a safer place.
Store in hot wallet
Hot wallets are wallets that can run on tablets, laptops, PCs, phones or other electronic devices that can connect to the Internet. The method is very convenient for you, in terms of online storage, but it is still at risk of being hacked because you are constantly connected to the internet.
Store in cold wallet
Cold wallets are the exact opposite of hot wallets, you won't need to connect to the Internet. Instead, we will save as a hard drive or USB. With this form of storage we also run the risk of losing the key to the wallet, which you will likely never get back. Or in case your wallet has technical problems or damage, you may also face the risk of losing money.
Frequently asked questions in Coin investment guide for beginners
How much is the reasonable amount of money when playing coin?
Many people, when learning about "coin investment guide for beginners", often send us the question "how much should I invest?". The answer is that there is not an exact number for you. But we determine the capital expenditure, which can be determined by the following 5 factors:
The first, How much total assets (capital) do you own?
Monday, What is your average monthly income?
Tuesday, How much profit do you expect?
4th, Do you want to consider this as a long-term or short-term investment?
Thursday, How much risk do you accept?
Look here, if your top 3 factors are high, then of course your investment can go higher. However, we do provide a conservative number for your capital flow, which is recommended for investment use. less than 35% of total assets you are. In addition, after determining how much capital you pour into the coin, you should continue to branch out, subdividing into other coin portfolios.
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Is it risky to play high money coins?
We know that any type of investment on the market today always has limitations on risks for investors. Besides, it always follows the law, high profits always come with great risks, and vice versa. The same goes for investing in the cryptocurrency market. We will have a lot of ways to make money from coins, there is a low risk way, but also a high risk way. But in general, we need to prepare psychologically that the virtual currency investment market always has many risks, typically:
- You may encounter fraudulent exchanges, money laundering. However, this is a rather small risk. We have also encountered a few small cases in the last 10 years of operation. So doing a thorough research on the exchanges before starting is also a very important step for new investors.
- Invest in the wrong projects, the coins that are undervalued. This is not too strange, but many investors have it. The simple reason here is that we do not learn carefully, do not cultivate a good knowledge base, so we invest in "bad" businesses, even many people suffer losses.
- Risks from market volatility: Of course, cryptocurrency investing is not out of the swing of market volatility. Fast volatility is also a typical feature of cryptocurrencies. When participating, we are forced to accept and find ways to limit unnecessary risks for ourselves.
How to effectively invest coins how much profit?
When learning about the beginner's guide to investing in coins, surely everyone is curious that "how much profit will they give them by investing in coins?" As we mentioned above, profit and risk always go hand in hand; The higher the risk, the greater the profit. Here, it will not be possible to have an exact answer for the investor, because the profit of coin investment is “unlimited”. The x5, x10 and even x1000 of your capital is completely possible when you know how to invest coins effectively.
And of course, it is not because of high profits that we recklessly put all our capital into investing in coins to find a profit stream of x100. Above all, we should allocate capital reasonably, as well as have a clear strategy to minimize the risks when investing. Only then, you can easily play coins to make money with high yield efficiency.
Why do investors lose money playing coins?
When learning how to play coins for beginners, you will clearly see 2 main reasons why investors lose money when playing coins. These 2 reasons are very obvious, they are:
- Not following the investment process, in a hurry, but often investing in a short-term way. Want to make a profit in the short term, but meanwhile, the market knowledge is not mastered, and the trading skills are poor. This is the reason why investors quickly lost their hands after only a few trading sessions.
- Not knowing how to allocate capital, improper financial management is also the reason why many investors play coins to make money inefficiently, which always leads to heavy losses.
- Especially for some people, usually more men, they often play coins to make money but are impatient and extremely impatient. This is also a factor that causes them to make wrong choices and decisions.
How to play coin for beginners to succeed, what should be noted?
To help investors have an effective way to invest coins, there will be 4 decisive factors to the success of investors when playing coins to make money, including:
- Clearly define the initial coin you intend to invest in.
- Reasonable allocation of capital when participating in investment.
- Reasonable final selling price.
- Follow the major trends of the virtual currency market in general.
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Above are some general overview of coin investment guide for beginners. These are just the basic steps, so you can figure out what we need to do when we start to enter the market. To learn more about how to play coins for beginners or how to invest coins effectively, we will continue to share in the next articles!
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