Crypto in 2022 — How to invest?

crypto

How to invest in crypto in 2022 in a smart way? Cryptocurrency has never been easier to buy and invest in.  If you do choose to invest in crypto, be sure to self-educate on the risks, best practices and keep an eye on the industry!

Your first step when investing in crypto is to research and find out the projects you are interested in. The next step is to decide if you want to invest and trade on a centralized place like Coinbase, Binance or do if want to engage with decentralized apps, such as staking, liquidity mining, yield farming, etc. Luckily, crypto has been around long enough that the biggest exchanges have become quite robust and user-friendly. But there’s more to investing than just buying your chosen cryptocurrency. As an experienced investor, you probably have many questions about crypto, including what you need to know before investing, how to buy it, and how to safely store (and protect) your investments.

How to select a cryptocurrency?

There are many options for cryptocurrency investors, though there are none that are likely to be right for everyone. Before you buy, ask yourself what your goals are for this investment. Are you hoping it will increase in value? Or are you interested in carrying out transactions using cryptocurrency? Are you interested in using the underlying technology via decentralized apps? These may help you make your decision. 

 

Keeping crypto safe

Once you’ve decided to buy crypto and determined which cryptocurrencies you want to invest in, your next decision will be how you want to store it.

This is an important choice. Some crypto assets require a private key, which proves ownership of cryptocurrencies and is necessary for carrying out transactions. If you lose your private keys, you’ve lost your cryptocurrency. If someone gets your private keys, they can dispense with your cryptocurrencies however they want. The private key comes into play when people interact with decentralized apps through their non-custodial wallets.

If you interact with a centralized exchange, there is no private key since it is centralized and the company holds your key. Crypto owners use digital wallets to store their holdings safely. There are multiple options to consider when it comes to digital wallets.

Maintain Your Investment

Your final step is to maintain your investment. Here’s what you should do:

  • Add your crypto to your main investing dashboard so you can monitor its performance over time.
  • Check headlines regularly to monitor regulatory scrutiny of your chosen exchange.
  • Monitor which governments are banning crypto.
  • Continue to self-educate on new cryptos and blockchain implementation.
  • Consider also joining a crypto community via your preferred social media platform, or even consider attending in-person crypto conferences or meetups.

 

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