In this article, the most exclusive tools for investing in cryptocurrency that is based upon my experience as a crypto enthusiast(7+ years).
Starting investing in cryptocurrency comes with high opportunity but also with high risk. This cryptocurrency market isn’t for the faint-hearted and you should have a strong stomach before starting to invest in it. Maybe you already made your first steps into this new wonderland but got a little lost into terms like – tokens, altcoins, secure wallets, crypto exchanges and so on. If all these terms made your head spin, don’t worry this is quite normal!
Tools for Investing in Cryptocurrency
So how does a beginner(or noob) get a good start in this new exciting digital world? In this post, I will break down the important tools available for investing in cryptocurrency.
- Cryptocurrency wallets
- Cryptocurrency exchange
- Bitcoin debit card
- Technical analysis(Tradingview)
- Buy crypto instantly
- Social media
1. Cryptocurrency wallets
For starting and investing in cryptocurrency you have to own and store it somewhere. To do this you can use digital wallets to store your Bitcoin or Ethereum safely. Almost every single cryptocurrency token out there already delivers a cryptocurrency wallet so the options available are very large. Also, which of these available wallets is most suitable for you?
The answer is, it depends on your plans with cryptocurrency. If you are a ‘crypto believer’ and want to store it safely for a long period of time(> 1 year) a hardware wallet would meet your needs most.
On the other hand, if you want to own several cryptocurrencies and take profit now and then a software wallet would be more appropriate.
To store your cryptocurrency in a hardware wallet is the safest way to do to protect yourself from hackers or other bad actors.
Hardware wallets are special devices that securely store the secret key (private key) needed to authorize a transaction on the device itself. Moreover, a hardware wallet, unlike a software wallet on a computer, is not vulnerable to viruses and malware.
Buy a hardware wallet
For buying a hardware wallet, currently, there are two providers which have the most trusted reputation in this new industry. The companies are Trezor and Ledger Nano.
These are wallets that you can run on your local machine like a desktop PC or a mobile device. Software wallets can be divided into two categories :
- Hot wallets – These are wallets that have a live connection to the internet. This is very important if you want to have access to your cryptocurrencies 24 hours a day and from anywhere in the world.
- Cold storage wallets – These are wallets that don’t have access to the internet(offline wallets) and you can only access it by a specific device that runs the software. Additionally, your cryptocurrency will be stored on the local hard disk of this device.
My favorite software wallet is Electrum(Bitcoin only!) and you can download it here. If you are planning to buy several different cryptocurrencies than its better to use a multi-crypto wallet. Good examples of these are Exodus and Jaxx.
2. Cryptocurrency exchange
A cryptocurrency exchange is an online platform where investors can go to buy any form of cryptocurrency with for example USD or EURO. Investing in cryptocurrency brings you here where other traders are willing to buy and sell cryptocurrencies on a regular basis.
If you are planning to do this then the exchange will be in control of your wallets(private keys) and account balances. The advantage of this is that you can’t lose your private keys or cryptos. Also, the exchange will take care of your account and has your back when something bad occurs(mostly hacks).
My favorite trading platforms are Binance and Bitfinex and I use them both. In particular, both platforms are cryptocurrency trading platforms. Additionally, these platforms give users the possibility to buy and trade any form of cryptocurrency.
Investing in Cryptocurrency
- Binance – Binance originally targeted the Chinese market for trading cryptocurrencies. Due to policies by the Chinese government which are crypto unfriendly, Binance removed its headquarters to Malta in Europe. In 2017, they decided to scale up and target a global audience. Currently, Binance handles more than 2.6 billion! transactions within 24 hours and is one of the biggest trading platforms.
- Bitfinex – Bitfinex is also a very large trading platform which exists for a while now in the cryptocurrency market. Its headquarters are based in Hong Kong and mostly serious investors ($10 000 + accounts) using this exchange for trading.
3. Cryptocurrency debit card
Another important tool for investing cryptocurrency is a Bitcoin(crypto)debit card. Personally, I travel a lot and owning a debit card gives you the ultimate freedom experience. Moreover, with this card it allows you to have access to borderless money instantly in a very easy way.
This opportunity of being in control of your own digital money which is borderless gives me a lot of benefits when traveling. One of the main reasons is that you don’t have to deal with the local currency anymore, because you can use the VISA network which handles your transactions.
Why cryptocurrency debit card
Especially with cryptocurrency debit cards you can buy or sell crypto for fiat. However, the charged fees are cheaper than using regular fiat currency exchanges.
Wirex is one of the most popular cards among crypto travelers
To buy or sell crypto, you can do it from within their platform or App and they choose the exchanges with the lowest exchange rate. It doesn’t matter where you are located in the world, because their platform offers you to trade from anywhere. Therefore, the cryptocurrency debit card I use and recommend is Wirex.
Crypto back program
Unique in the service of Wirex is its ‘Cryptoback’ program. This service is one of my favorites because it gives you the ability to earn crypto while you buying something with crypto. Every transaction you make gives you 0.5% back in BTC. This can only be done when you are in the possession of a Wirex card and do an in-store purchase. The rewards are paid instantly and in Satoshis, the smallest unit of Bitcoin.
It’s also possible to exchange your crypto in traditional currencies. Currently, they offer 10 traditional currencies to be exchanged: EURO, USD(US Dollar), GBP(British pound), YPJ(Japanese Jen) and some others.
4. Technical analysis
If you are serious about investing in cryptocurrency and did signup on cryptocurrency exchange you’re ready to enter the world of the crypto traders. In my opinion, there are two types of traders: long-term trader(swing trader) and short-term traders(daily). It’s up to you to choose which best fits your character. Whether you choose to trade short-term or long-term you need some extra tools to make good buying decisions.
First, you need to know how to do technical analysis which is the study of price patterns. A good place to learn this is Investopedia. There are also several other important tools out there for using daily charts, but the most popular is Tradingview. You can start there with a free account and add(up to three) technical indicators in your charts.
5. Buy/sell Bitcoin or any Cryptocurrency instantly
For investors who don’t trust a cryptocurrency exchange, but still want to own Bitcoin or any other cryptocurrency this option suits it best. Currently, there are several online platforms out there that offer you to buy or sell your crypto anonymously and very quickly. There is just one downside: you have to pay more in fees compared to a regular online cryptocurrency exchange.
Investing in Crypto with Coinmama
These services of buying cryptocurrency instantly are quite old and in the early days(2013) this was a common way of getting your crypto quick. These services are still there and have even improved over time. Coinmama, for example, offers a way to sell your cryptocurrency for fiat(USD), in a very fast way(hours), and has been offering its service since 2013.
6. Information and resources
Nowadays social media is being used particularly by every human being under the age of 40. For starting being profitable in the cryptocurrency markets then it’s a must to have social media to get the most actual information about the markets.
Twitter is very popular and one of the most used tools, so it’s crucial to set up an account there. On a daily bases, a lot of information is being shared by professional traders/investors and it’s very easy to start following them. Here I will give you a list of my favorite Twitter accounts:
Of course, I’m also on Twitter and you can start following me by clicking the social media links below.
Also, for more technical information about the blockchain network like daily Bitcoin transactions or hash rates you can visit this website. Another important source of information comes from Coinmarketcap which lists all available cryptocurrency coins and their stats.
Starting investing in cryptocurrency could be a real bummer when you don’t know much about this market yet. Of course, there is a lot of information on the internet available, but this could also be a little bit overwhelming. I hope with this article, I have given you the most important tools for investing in cryptocurrency so you can be profitable in the end.
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