When starting a crypto journey, there are more than 11,000+ coins and tokens to choose from. And, every beginner has questions like how to safely invest, purchase or sell coins and tokens.
Here is a brief guide to get you started.
1. Start with the minimum
Just like starting any investment, allocate only the minimal percent of your income or savings to purchase the assets. Since the crypto market is too volatile, use only the amount of money that you are ready to lose, in a worst-case scenario. You can look into low-cost yet promising tokens that have huge potential to rise in the future like Xceltoken Plus, Matic, Basic Attention Token, and so on.
2. Select a cryptocurrency/project and stick with it
Almost all the beginner’s mistake is trading with no clue of what they are doing. You must learn to select a cryptocurrency with a stable ecosystem that suits your needs and holds them from the beginning. Get familiar with its use cases and make plans on using it for optimal benefit.
For example: If you are a travel enthusiast, buy Xceltoken Plus. You can easily book over 2.5 million hotels and 450+ around the globe using XLAB on https://www.xceltrip.com
3. Picking the Right Cryptocurrency Exchange
You can trade cryptocurrencies for other digital assets in cryptocurrency exchange.
It disrupts the involvement of intermediaries, making trade easy, low cost, and reliable. There are two types of exchange where you can trade or stake your assets. i.e. Centralized and Decentralized Exchange.
Centralized exchanges(CEX) are controlled and operated by a company, so it's more reliable. But they have control over your funds when you make transactions or trading. Whereas, Decentralized exchanges (DEX) offer peer-to-peer transactions with no intermediary through liquidity pools. Some examples are Uni swap, Pancake swap, and Xcelswap.
4. Choose a Cryptocurrency Wallet
You can store crypto assets in an outside wallet after withdrawing the coins from the crypto exchange. It acts as a vault that secures your key and limits unprecedented access to cryptocurrency on the blockchain.
There are different categories of wallets in which you can store your crypto assets
Online wallets are the least safe but the quickest to set up. Software wallets on the other hand are safer than online wallets. XcelPay Wallet is a decentralized cryptocurrency wallet that provides users with a safe and reliable place to store their cryptos on mobile and tablets. Users can easily download XcelPay Wallet on their device from the google play store or app store.
Users can also opt for Hardware wallets like Ledger and Trezor. These are portable devices users can plug into their computers via USB.
5. Payment method
Brokers or Crypto Exchange will help you create and verify accounts, deposit cash, place orders, and so on. Check the payment methods allowed to purchase cryptocurrency in your country. You can do it using a bank or credit card in most countries. Make sure that the methods you will follow are completely secure.