How to start investing in crypto? Before you can invest in crypto market, you’ll need: an investment plan, a secure cryptocurrency wallet, and an account on a digital asset exchange.
Crypto investing strategies: an investment plan
When it’s time to invest in crypto, consider two basic approaches:
- Long-term (buy & hold): You buy crypto and hold for months or years, aiming for appreciation over time.
- Short-term (active trading): You trade frequently, speculating on crypto-price movements and aiming for quicker gains (and potentially higher risk).
An investment plan outlines your goals and how you’ll try to achieve them. Such a plan helps you make more disciplined choices and improve your chances of generating a return. You might create your plan with the help of a financial advisor. They can help you:
- Review your current financial situation.
- Understand your risk tolerance.
- Select the cryptocurrencies you want to invest in.
- Establish the outcomes you expect and when you anticipate them to happen.
Crypto wallet
A crypto wallet is essential for storing the digital assets you purchase.
Wallets come in two broad categories: hot wallets (online) and cold wallets (offline). Cold wallets are more secure because they are not constantly connected to the internet, making them ideal for long-term storage. Hot wallets are more convenient and are good if you plan frequent access.
Examples:
Hot wallets (mobile/desktop/web): Trust Wallet, Exodus, MetaMask.
Cold wallets: hardware wallets such as Ledger, Trezor, SafePal; paper wallets.
You can find the best option for your needs in our lists of the best cold wallets and best hot wallets.
Where to invest in cryptocurrency: an account on a crypto exchange
To invest, you’ll need an account on a crypto exchange. Setting this up early is wise because verification on centralized exchanges may take several hours or even a day or more. Most exchanges require you to verify your identity after registering. Only then will you be able to buy or sell crypto.
How to buy crypto on an exchange
Assuming you’ve chosen a suitable exchange, created your account and completed verification, you can buy crypto assets by doing the following:
Securely store your crypto investment: once purchased, transferring the digital assets into a personal wallet you control is best. (See wallet section next.)
Log into your account: open the exchange website or a pp and log in.
Fund your account by depositing fiat currency or linking a debit/credit card: check the minimum deposit amount and any deposit fees.
Select the cryptocurrency you want to buy: pick the crypto assets you researched and decide how much you want to buy. Exchanges typically show how many coins or fractions you’ll receive. Note you can buy fractions of major coins (for example, 0.001 BTC instead of 1 BTC) depending on your capital.
Complete the transaction: the exchange will process your purchase and send the digital asset to your account wallet.
