The WoW Style

If you are new to the world of cryptocurrencies — which is more than likely the case for most of you reading this article — figuring out how to get started can be a confusing, if not daunting, process. This is made worse by the sheer amount of jargon that exists within the crypto community, as well as difficulties in understanding what exactly cryptocurrencies are.

Thankfully, this doesn’t need to be the case. In fact, cryptocurrencies were established with the aim of democratizing the world of financial services and online payments. 

This aim is something the cryptocurrency sector has clearly taken to heart. Thanks to a significant amount of investment and development in the FinTech space, you can now invest in and trade the most popular assets on the cryptocurrency list at the click of a button, or the tap of a thumb depending on what device you are using!

But how exactly can you invest in crypto and can anyone get started?

What types of crypto investing are there?

Buying and selling cryptocurrencies directly is not the only way to purchase these digital assets. When it comes to investing in cryptos, you now have a number of different investment options to choose from, including:

• Buying cryptocurrency directly, such as Bitcoin or Ethereum. This is usually done via a cryptocurrency exchange, where cryptos are traded in real-time in line with the current market price, such as the price of Luna.
• Investing in crypto companies. Another way of investing in the crypto space is to invest in cryptocurrency companies. There are a wide range of ways to do this, including crypto mining companies, hardware makers, as well as online financial services companies who support and develop crypto infrastructure.
• Invest in crypto funds. Another way of gaining exposure to the crypto world is to invest in cryptocurrency investment funds. Rather than purchasing individual units of crypto, you instead invest money into a ‘fund’ which pools resources together to acquire different cryptocurrencies. This includes everything from exchange-traded funds, index funds, futures funds to investment trusts. These are a great option if you want someone with more expertise and industry knowledge to choose an investment strategy on your behalf.
• Become a miner or validator. Another way to acquire crypto, is to become an active part of the cryptocurrency networks themselves. Many different crypto networks, such as Ethereum and other major coins, will reward users for verifying and validating transactions that are made on the network. Doing this work gives you the opportunity to earn small units of crypto for your efforts and to contribute to the functioning of the network itself!

How can I invest in crypto?

If the first option sounds like it is best for you, you can invest directly in cryptocurrencies by using an online crypto exchange. This is essentially a platform where buyers and sellers are matched, which allows you to acquire units of your crypto of choice. But how exactly can you invest in crypto directly?

• Choose your exchange. To get started, choose from one of the many different exchanges currently in operation. There are a number to choose from these days, each of which has different costs associated with using them. Always choose a reputable exchange that provides you with a high level of customer protection! The crypto exchange market is big business these days, so you have many options to choose from.
• Create and fund your account. To get started, you will then need to create an account and add funds. To initiate a purchase, you will need to fund your exchange account with fiat currency. To do this, you will typically also need to provide personal information and to verify your identity. This is to prevent fraud and to comply with anti-money laundering regulations.
• Choose a crypto. Once your account is funded, you can then choose the crypto you want to invest in. This requires a significant amount of research, which involves not only learning about the project, but also watching the movement of the markets for the best time to buy in.
• Place and execute your order. With your crypto chosen, you can then place an order. This involves selecting the amount of crypto you want to acquire, as well as checking other details, such as the price of the specific crypto, for instance the SLP price.

Store your crypto. With your order executed, your crypto will then be sent to and stored in your account. You will then need to decide whether you want to leave it in the digital wallet attached to your account, or whether you want to put it in cold storage off the exchange. Cold storage is typically safer, although it is more difficult to access once it is in storage.