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If you have heard of Bitcoins, BitCrystals, Maidsafecoins, Dash, Ethereum etc, you should probably know about Cryptocurrency. Well, Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Cryptocurrency is also seen as the money of the future. So, I will be showing you 4 easy steps to start investing in crytocurrency.
Investing in cryptocurrency could be quite intimidating for a newcomer, especially if you’re Nigerian because a few months to years back, it was difficult for a Nigerian to get accepted into some major cryptocurrency exchanges but that is changing now.
Apart from the stigma, you wouldn’t be lucky to find someone who would guide you all the way and steer you away from scammers. To save you from the headache I had to endure, I’ll be outlining 4 easy steps to go from newbie to cryptocurrency investor.
Step 1. Choosing a wallet
A wallet, is where your cryptocurrency will be stored and each currency requires a different wallet. You have 2 main options when picking a wallet; online or offline (client). Both have their own associated risks.
With an online wallet, you’re trusting someone else to secure your money.
It’s possible for the person to get hacked or simply vanish, resulting in you losing all or part of your coins. With an offline wallet, if your device gets lost and you haven’t backed up your private / secure keys then you’re in a fix.
For newbies (starting with little amounts), I usually recommend an online wallet.
Step 2. Choosing an entry coin
There are many coins in the market, but you need to buy one (entry coin) which you can then exchange for other coins.
Bitcoin is of course the most preferred entry coin because its very easy to exchange for other coins. You could also choose Dogecoin. The next thing (once you get a wallet) would be to buy some of the entry coin.
Step 3. Choosing a portfolio
Now that you have some coins, its time to choose your portfolio. Your portfolio are the coins you wish to invest in. There are so many scam coins (pump and dump schemes), so you would want to invest in coins that enjoy active development and solve a very important problem.
Google the coin and filter your search to the last week or month to know what’s happening with it. If you just want to make a profit regardless of what kind of coin it is then buy cheap and sell once you hit your goal (monitor the price charts daily). Its very easy to make and lose money in cryptocurrency, so don’t get greedy.
Step 4. Choosing an exit strategy
If you wish to invest without an exit strategy, then you’re setting yourself up to lose money. You should clearly identify coin exchanges that can help you exchange your exit coin (usually Bitcoin) for your local currency.
If you use a Domiciliary account, then it would be exchanged that support international wire transfer. It’s as simple as that.
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