How to Get into Cryptocurrency in 2023 - Top Tips
Disclaimer: The Industry Talk section features insights from crypto industry players and is not a part of the editorial content of Cryptonews.com.
Although digital assets have been around for over a decade, many investors still find the crypto market overwhelming. However, contrary to popular belief, getting started with a first-time crypto investment is fairly simple.
This guide explains how investors can venture into the space of cryptocurrencies. We also share some handy tips on how to get into cryptocurrency safely while minimizing the overall risks.
10 Top Tips on How to Get Into Cryptocurrency in 2023
Here are some useful tips to follow when trying to get into the crypto space as a beginner:
- Find low-cost, high-potential presale projects like Dash 2 Trade
- Get educated about the crypto market
- Develop a strategy
- Learn how to store cryptocurrency safely
- Choose a crypto exchange or broker
- Diversify investments
- Invest with a dollar-cost averaging
- Gain exposure to cryptocurrency indirectly
- Earn passive income with crypto staking
- Use leverage carefully
For complete beginners, we have prepared an extensive guide on what is cryptocurrency - explaining how digital tokens work and how they are different from other assets such as stocks and commodities.
A Closer Look at How to Get Started in Cryptocurrency
When Googling 'how to get into crypto', investors are likely to be bombarded with thousands of search results. There are virtually hundreds of articles on the likes of 'next cryptocurrency to explode' and 'how to get rich with crypto'.
- However, many guides fail to explain how risky the crypto space actually is.
- In fact, cryptocurrencies are perhaps the most volatile asset class in the financial market.
- It is not uncommon for the price of cryptocurrencies to swing up or down by 10% or even more within a single day.
For some investors, the high risks might be too much to handle. That being said, there are also ways to deal with risk when investing in cryptocurrencies.
With this in mind, let us dive right into 10 tips that investors can use to get into the crypto market in a risk-averse manner.
1. Crypto Presales - Get Into the Crypto Market at a Low Entry Price
As of writing, the most popular cryptocurrencies, Bitcoin and Ethereum, are trading at around $16,000 and $1,200, respectively. Hence, the first thing that might occur to new investors is that major cryptocurrencies are expensive.
However, that isn't the full picture. Investors need not buy well-established, large-cap cryptocurrencies to make money. Instead, the best way is to identify the fastest-growing cryptocurrencies that are available at a low entry price.
This is where crypto presales come in.
In a nutshell, crypto presales happen before the digital token is listed for market trading. The main purpose of token presales is to raise capital for the expansion of an emerging crypto project. For investors, crypto presales come with many advantages.
- Crypto presales allow investors to gain access to a disruptive new project from an early stage.
- Additionally, crypto presale tokens are often sold at a low price - when compared to their future listing price on an exchange.
- This means that there is high upside potential, and furthermore, inexperienced investors are not required to risk vast sums of money to gain exposure.
For example, take the case of Ethereum, one of the most successful cryptocurrencies of all time. Ethereum held its presale in 2014, where investors could one ETH token for just $0.31. In 2021, one ETH was worth over $4,900. Even during the 2022 bear market, ETH is trading above $1,000.
Therefore, those who bought Ethereum during presale and held onto their coins would have seen their portfolios grow by unprecedented amounts.
Some of the best crypto presales of 2022 included Tamadoge, Battle Infinity, and Lucky Block. Tamadoge started its presale at a price of $0.01 per token. By the time it was listed on crypto exchanges, TAMA tokens were trading at around $0.20 - registering a profit of 2,000% for early investors.
Bearing all of this in mind, we have researched a number of upcoming crypto presales that have every chance of mirroring the success of Ethereum, Tamadoge, and other notable projects.
Dash 2 Trade - Advanced Crypto Analytics Platform
Dash 2 Trade is a brand new crypto analytics platform that brings a variety of trading tools to investors. It comes with many useful features, such as trading signals, social analysis, on-chain data, strategy backtesting, and plenty more - all of which can help investors make informed decisions.
At the center of the Dash 2 Trade ecosystem is the D2T token. This is an ERC-20 token that functions as the transactional currency of the platform. To unlock access to Dash 2 Trade tools, traders will have to sign up for a subscription service and pay with D2T tokens.
Dash 2 Trade has a free version; however, this offers only the bare-bone basics of the platform's capabilities. To profit from the full suite of features, users can choose between two different plans. The starter plan costs 400 D2T, and the professional plan comes at 1,000 D2T tokens.
Apart from trading signals and analysis, Dash 2 Trade also offers unique features. For instance, it evaluates the best upcoming ICOs using an in-built scoring system. Each presale and ICO is vetted by the Dash 2 Trade team manually after evaluating the whitepaper and roadmap of the project, its future potential, and other factors.
In addition to this, Dash 2 Trade also allows users to connect the platform to crypto exchanges and set up auto trading. Automated strategies will be carried out as per the preferences of the user.
As we mentioned earlier, the Dash 2 Trade presale is live as of writing. The presale has already raised more than $6.2 million. The presale has multiple stages, with the price of D2T tokens gradually increasing with each.
At the time of writing, D2T tokens are being sold for $0.0513, but by the next stage, the price will increase to $0.0533. Dash 2 Trade aims to become the top-tier social trading and analytics platform for crypto investors.
Once the platform is launched, it can be a valuable tool for those wondering how to get into cryptocurrency - providing beginners with useful tools and valuable insights. Given the features of this platform, the price of D2T tokens could potentially increase over the years. If that happens, early investors will be in the best position to reap notable returns.
|Presale Started||October 19|
|Purchase Methods||ETH, USDT, Transak|
|Min Investment||1,000 D2T|
RobotEra - Metaverse Token With NFT Games
Over the last couple of years, the crypto space has witnessed an explosion of metaverse projects. The latest platform in town is RobotEra, a project that aims to create a virtual world in the metaverse. In many ways, RobotEra is similar to Decentraland and Sandbox.
However, RobotEra is also unique in its own way. In RobotEra, the player is represented by a virtual robot. Players can build structures in their virtual lands, manage resources and collaborate with others to get ahead in the game.
To make things more interesting, RobotEra has also developed a backstory for its game. The virtual world of RobotEra is split into seven continents and even has a central city.
Moreover, RobotEra intends to provide connectivity with multiple metaverses, thus creating a shared multiverse. Players can do virtually anything they want in their lands and host any events. All in-game assets will be available as NFTs, and players will be able to trade them on marketplaces.
As with all other crypto projects, RobotEra also has a native digital token named TARO. It has many use cases with the RobotEra ecosystem and can be used to buy in-game assets. TARO tokens can also be used for staking to generate passive income.
RobotEra also allows its players to earn additional income by hosting virtual events on their lands, participating in events, and by managing real estate. All things considered, RobotEra indeed has the potential to become one of the best metaverse coins of 2023.
As of writing, Investors can buy RobotEra via presale - which is in its first stage. The presale is set to take place in three stages. Based on the utility of this token, some crypto analysts believe that RobotEra could gain 20x more value by 2023.
|Presale Started||November 2022|
|Purchase Methods||ETH, USDT|
|Min Investment||1,000 TARO|
All in all, presales like Dash 2 Trade and RobotEra can be a great way to get started in the crypto space without having to risk large amounts of money.
2. Get Educated About the Crypto Market
Crypto presales are undeniably one of the less-expensive ways to gain exposure to the blockchain space. However, before moving forward, investors should also ensure that there is a firm understanding of the ins and outs of this market.
To get started, investors should familiarize themselves with the most popular cryptocurrency terms. When navigating the crypto space, investors will come across many new terms - such as HODL, wallets, NFTs, meme tokens, and exchanges - all of which might have a different meaning elsewhere.
It is also crucial for investors to have a clear idea about cryptocurrency regulations in their country. Although cryptocurrencies are largely unregulated, some countries have policies that limit the trading of digital assets.
Similarly, countries across the world also have distinct rules regarding crypto tax. Some nations require their residents to pay taxes on the profits generated from cryptocurrency investments. As such, investors should be clear about what their duties are and how they can protect themselves before risking money on a volatile asset class like crypto.
3. Develop a Strategy
Once investors have a basic understanding of what digital assets are, it is time to consider how to get rich off crypto. After all, this is the overarching reason for learning to invest in cryptocurrencies.
In this regard, investors can take on two different approaches:
- Long-term investing - In this strategy, investors will buy a cryptocurrency and hold the tokens for years at a time. This method is popularly known as 'HODL' or 'buy and hold'. Crypto HODLers believe that the value of the cryptocurrency will appreciate over the long term due to their use cases or potential for growth.
- Short-term Trading - On the other hand, crypto traders are much more active in this space. In this strategy, traders speculate on the future price of a cryptocurrency and open positions accordingly to make a profit. The main difference is that traders open and close positions in the short run.
For instance, an investor might speculate that the price of Bitcoin will increase by the end of the day. So, they might open a trade to buy Bitcoin and close it in a few hours if and when the price of BTC coins increases. As is evident, the profit with short-term crypto trades can be marginal.
However, crypto traders open and close multiple positions so that their profits add up over time. Moreover, crypto traders are not always after digital assets with growth potential. Instead, they are looking to profit from the short-term volatility of cryptocurrencies.
There are many strategies in the realm of crypto trading - while some professionals keep their positions open for a few hours, others close them within a matter of minutes. In addition to this, traders can also use derivatives such as CFDs to go short - to profit from the falling prices of digital assets.
Traders generally rely on technical indicators and other crypto tools to arrive at their decisions. Needless to say, crypto trading is not entirely suited for complete beginners, as it requires some expertise. Over time, investors can decide on a strategy best suited for themselves based on their risk appetite and financial standing.
Regardless, it is always necessary to be clear about the proposed strategy before buying crypto. This will help to find answers to important questions such as which digital assets to buy and how much to invest in cryptocurrency.
4. Learn How to Store Cryptocurrency Safely
Before proceeding to buy digital assets, investors and traders should also think about how to store cryptocurrencies safely.
For those unaware, cryptocurrencies are stored in digital wallets.
Let's explore how crypto wallets work.
- A crypto wallet has two components - a public and a private key.
- The public key is used to create wallet addresses that can be viewed by everyone. A public key is made of numbers and letters and can be shared with others in order to receive cryptocurrencies in the wallet. Public keys are automatically created when setting up a crypto wallet.
- The private key, on the contrary, is not publicly viewable. Investors will need to have this private key in order to send cryptocurrencies from their wallets. In other words, the private key essentially serves as the password.
On top of this, new crypto wallets also generate a seed phrase during the initial setup. This seed phrase is used to recover the crypto in the wallet in case the password is lost.
Without the recovery phrase, users of the wallet won't be able to access their cryptocurrencies if they lose the password.
This is why it is always necessary to keep the private key of the wallet safe. Moreover, the safety of the cryptocurrencies will also be determined by the type of digital wallet chosen.
When thinking of how to get a crypto wallet, investors have two options.
Software wallets come in the form of applications that can be downloaded to a device, such as a laptop, tablet, or phone. This type of wallet comes in both custodial and non-custodial varieties. For instance, custodial wallets are those that come integrated with exchanges and brokers.
With custodial storage, the provider will have access to the cryptocurrencies stored in the wallet to carry out transactions on the user's behalf. However, entrusting a third-party crypto exchange for the purpose of storage might not be the wisest of ideas - considering the recent collapse of FTX.
Instead, non-custodial wallets are the safest option. Non-custodial wallets are those that hand over full control to the user. This means that the user is the only person that has access to the wallet and subsequently the crypto assets.
Hard wallets come in the form of small devices that can be connected to laptops and phones. Hard wallets might be the best option for investors who prefer to hold on to their assets for months or years at a time.
That being said, hard wallets can be cumbersome when it comes to convenience. Not only will users need to keep their passwords safe, but they will also need to have access to the device every time they wish to carry out a crypto transaction.
Put simply, the best crypto wallet will ultimately depend on the strategy of the investor. For instance, someone who carries out a lot of trades might prefer to use a software wallet. On the other hand, hard wallets might be best suited for those who take on a long-term 'buy and hold' strategy.
5. Choose an Exchange or Broker
Now that we have covered the basics, let us move on to the process of how to get cryptocurrency. Perhaps the most common way of buying digital assets is to go via a crypto exchange. Investors should opt for online brokers that are regulated, which offers a more secure environment.
For instance, eToro is one of the top crypto brokers available today. This broker is regulated by the SEC in the US, FCA in the UK, CySEC in Cyprus, and ASIC in Australia. The platform was launched in 2007 and has since grown as one of the most credible brokers that facilitates crypto trading.
Apart from being regulated, eToro also supports social trading and allows users to store their cryptocurrencies on the platform. Investors can buy crypto with credit/debit cards, e-wallets, or via a bank transfer.
There are many other crypto exchanges that cater to both investors and traders - so research is crucial.
When choosing an exchange or broker, investors should consider the following:
- The types of cryptocurrencies supported
- Regulatory status and security
- Types of payment methods accepted
- Customer service
To learn more, refer to our guide on how to choose a cryptocurrency exchange.
After buying cryptocurrencies, investors can choose to leave their digital assets with the exchange or move them to a private digital wallet. Once again, the best option will depend on the strategy of the investor.
However, if using an exchange that doesn't hold a tier-one regulatory license, the coins should be withdrawn as soon as the purchase is made. Once again, this is why we prefer eToro - as it is heavily regulated.
Your capital is at risk. Crypto asset investments are highly volatile and speculative.
6. Diversify Investments
As with any investment, cryptocurrencies also carry an inherent level of risk meaning it's important to have the right allocation of crypto in your portfolio. Moreover, this asset class is particularly volatile - and a single event can lead to the broader crypto market losing a considerable amount of value in the span of a day.
Therefore, when learning how to get into cryptocurrency, investors should also understand the best ways to mitigate the risk.
Diversification is one of the core concepts of investing. In simple terms, this strategy involves spreading investments into different cryptocurrencies. Instead of buying a single cryptocurrency, investors will allocate certain percentages to multiple digital assets.
By taking this approach, investors can limit the risk and reduce exposure to volatility. To make things even better, it would also be smart to diversify into asset classes other than just crypto. This ensures that investors avoid losing everything at once, even if one asset goes down in value.
When diversifying, It might be best to pick a number of well-established digital assets, along with some of the best emerging cryptocurrencies - such as Dash 2 Trade. Investors should also explore utility tokens with different use cases, which can further reduce exposure to a single market.
7. Invest With Dollar-Cost Averaging
Dollar-cost averaging is another popular strategy that can help take better control over crypto investments.
- For instance, let's say an investor is wondering how to get started with cryptocurrency but is not sure when to buy a digital asset or what amount to invest.
- In dollar-cost averaging, the investor will allocate a fixed amount of money at regular intervals to the same asset.
- This way, investors don't have to worry about getting the 'timing' right.
- Instead, it takes away the emotion from the decision-making process and reduces the risk while still offering an opportunity to profit from market swings.
When choosing an investment strategy, it is essential for investors to do their own research to make the best possible judgment. Always remember that the value of cryptocurrencies can increase or decrease within a short time, so investors should be prepared to lose their stake.
8. Gain Exposure to Cryptocurrency Indirectly
If investing in a cryptocurrency directly does not feel like the right choice, there are also other ways to gain exposure to the blockchain industry - such as:
- Invest in companies connected to blockchain - One way is to buy stocks in companies that operate in the crypto space. This allows investors to benefit from regulatory oversight and evade the risk associated with storing crypto. There are several companies that are publicly listed that fall under this category - such as Coinbase, PayPal, or Square.
- Invest in Blockchain ETFs - Crypto ETFs are another emerging asset class that is gaining popularity among investors. It allows investors to gain exposure to multiple digital assets via one investment - while providing the benefit of diversification. While some blockchain ETFs track crypto futures, others invest in companies.
We have a guide on the best crypto ETFs that will explain how exchange-traded funds work. As with any investment, crypto stocks and ETFs also carry risk.
Investors should always evaluate their goals and financial situation before staking money on any crypto-related asset.
9. Boost Crypto Investments With Staking
Crypto staking is a concept that is particularly appealing to long-term investors. In simple terms, instead of having the digital assets sitting idle in digital wallets, investors can deposit them into a staking platform and earn interest in return.
Here is an example of how crypto staking works:
- Suppose that an investor has $1,000 worth of arguably the best staking coin - Ethereum
- They can deposit Ethereum into a crypto staking platform that yields 10% APY
- Over the course of a year, $1,000 worth of Ethereum would yield $100 in rewards - which has been earned passively.
There are many crypto staking platforms that support such interest-earning accounts. However, the yield offered and the terms of staking will vary from one platform to another. Moreover, not every cryptocurrency can be staked.
Nevertheless, crypto staking and interest accounts are a simple way for investors to generate passive income on their digital assets.
10. Use Leverage Carefully
Leveraging refers to the process of borrowing money from a broker or exchange to fund an investment.
So, if a broker offers leverage of 1:10, investors need to put up only $10 but will be able to buy $100 worth of cryptocurrencies.
Leveraging is usually used by traders in order to boost profits. While the concept might sound appealing, it also comes with additional risks. For instance, if the trade does not go as speculated, the losses will also be multiplied - which can be catastrophic.
Due to the high risk involved, leveraging is not supported by all crypt exchanges and brokers. Moreover, it is also best for beginners to avoid leveraging their positions until they have a good grasp of the crypto markets.
How to Get into Crypto Mining
When researching how to get into cryptocurrency, investors are likely to come across the concept of mining. In simple terms, mining is the process through which cryptocurrency transactions are validated. In doing so, new cryptocurrencies are minted.
There was a time when crypto mining was lucrative, Anyone who had access to a powerful computer and technical expertise could mine crypto. However, today, a search for how to get into crypto mining will reveal that a home PC is not sufficient anymore.
Instead, crypto miners will have to invest in expensive hardware, pay high energy fees, and consider the cost of maintenance. In addition to this, miners should also be technically proficient.
The alternative is to take on a passive approach via the best Bitcoin mining sites. These platforms handle the mining part on behalf of their investors and provide users with returns. However, the returns will be minimal, and investors might need to wait a long time to earn enough cryptocurrency to make it worthwhile.
Given this, crypto mining might not be the most beneficial strategy. Rather, investors might want to consider crypto presales that come with higher upside potential. As we discussed above, presales are the easiest way to get access to the best future cryptocurrency projects at a discounted price.
Cryptocurrencies have emerged as a sizable force in finance. As our guide has discussed, there are many ways for investors to get into crypto and improve their chances of making profits.
One of the best ways to enter the crypto market is by investing in cryptocurrencies that have low entry prices but high potential to grow. In this regard, investors might want to consider participating in crypto presales.
Dash 2 Trade and RobotEra are two notable projects that are running their presales as of writing. These projects are innovative and have the scope to grow tremendously in the future.
How can a beginner start in cryptocurrency?
When thinking about how to get into cryptocurrency, the first step is to learn about digital assets. It is important for beginners to know about how cryptocurrencies work and the different ways to profit from them. Once ready, investors can proceed to buy cryptocurrency via an online broker or exchange.
What is the easiest way to get into crypto?
For most investors, the easiest way to get into cryptocurrency is by buying digital assets via a broker or exchange. Then, investors can wait until the value of the cryptocurrency increases to sell their digital assets for a profit. Of course, there is no guarantee that the price of the selected cryptocurrencies will rise.
How do I start investing in cryptocurrency?
To get started with cryptocurrency, investors should first have a digital wallet. Next, they should set up an account with a crypto exchange or a broker. Once the registration process is complete, investors can buy cryptocurrency using fiat money. After completing the purchase, move the cryptocurrencies to a secure digital wallet for safekeeping.
Can you get rich on cryptocurrency?
While some investors have profited greatly from cryptocurrencies, consider that many have lost money. Beginners will need to find the best cryptocurrencies to buy and get the timing right. That being said, when considering how to get started in cryptocurrency, investors should also educate themselves about the high risk and volatility associated with this market.