Education

On-ramps to Investing in Cryptocurrencies

With cryptocurrencies hitting the mainstream, you might know a few people that bought a coin or two, and they’re telling you it’s going to the Moon. But investing in cryptocurrencies is not just picking a coin or token that’s trending.

Cryptocurrency is an emerging technology with a market full of volatility, but it has incredible potential. The volatility is enough to make any investor nervous. However, the opportunity to build long-term wealth with this innovative financial instrument is too great to ignore.

As a new investor, you’ll need to know how to invest in cryptocurrencies. How they work, the applications of crypto, and research which crypto is right for your investing goals.

In this article, we’ll go through the essential steps for you to start.

What Are Cryptocurrencies and How Can They Be Used?

Cryptocurrencies are digital currencies secured and maintained by blockchain technology. This new technology makes them impossible to counterfeit and prevents double-spend and manipulation.

Tokens allow you to perform actions on a blockchain network. You can trade tokens for its products or services, such as creating smart contracts on Ethereum.

Also, crypto wealth management platforms, exchanges, and wallets can help send money to anyone. There are differences between crypto wealth management platforms and crypto banking, so do your research to make sure you use one that will help you earn interest in your stablecoins, easily trade, or borrow with 0% interest.

Additionally, cryptocurrency can help to foster financial inclusion and step in where other traditional methods have struggled to help underserved communities.

How to Understand Which Cryptocurrency is Right for You

If this is your first attempt at investing in crypto, the first thing you want to do is research — just like you’re doing right now. And, don’t feel like you’re alone in trying to get a grasp on the market. A recent study found that 69% of investors still don’t have a strong knowledge of crypto, according to an Abra customer survey. 

Nowadays, we live in a world where we have all the information at our fingertips. You can use that to your advantage. Here are some steps you can look into while researching cryptocurrencies:

  • Crypto Dedicated Websites: You can use websites dedicated to tracking various cryptocurrencies. There you’ll find prices, historical data, market cap, analysis, and much more. Examples of popular sites and apps include Abra, CoinMarketCap, and CoinGecko.
  • Whitepapers: Whitepapers represent the vision the creator has for their cryptocurrency. It can mention their project’s use, the mission, how it works, and much more. Reading a whitepaper is a must when it comes to investing in cryptocurrencies. You can find any whitepaper by searching the coin and whitepaper. (For example, the Bitcoin whitepaper).
  • Dedicated websites: Every cryptocurrency has its dedicated website. You can find the project whitepaper, roadmap, team, and more on those sites. For instance, Abra’s blog and Money Talks show are dedicated to educating the crypto community about the benefits of digital currencies.
  • Social media: Although Twitter or Reddit aren’t financial sources, it’s a good idea to use them and search around their followers and community. Sometimes you can find important information about the projects from the news and the community’s input following the project.

Where to Invest in Cryptocurrencies

Once you’ve researched the digital assets you want to invest in, the next step is to find dedicated spaces where you can buy them safely. 

The most common way to buy crypto is with exchanges or crypto wealth management platforms, like Abra. Try to find an exchange with good rates, prices, and benefits. If you want to learn more, watch the latest episode of Money Talks discussed crypto on-ramps.

When you open an account on an exchange or wallet, you can fund it with fiat currency (U.S. dollar, euro, etc). You can safely and securely fund your account by connecting your bank account or a credit card to the exchange or platform. Afterward, look for the coin or token, choose the amount, and start buying crypto.

You can also use a crypto ATM.  Using an ATM locator website, you find a cryptocurrency ATM near you. It’s simple to use, but it might carry additional fees. 

How to Manage Your Crypto Investment Portfolio

To be a good investor, you need to manage your investment portfolio and assets correctly. Track and manage your assets by their performance and price. 

At Abra, you’ll find a user-friendly app where you can easily buy and trade crypto with a few steps. You can also earn CPRX for taking actions in the app, such as referring a friend. 

You can earn $25 in CPRX for referring a friend to use our app. Users may log in to their Abra app to get a personalized referral link. When a friend uses the link to download and fund their account with $15 and holds the balance for at least one month, both the user and the friend will get a $25 reward paid in CPRX.

Referral rewards are paid out twice a week. Several investors are excited for the future of cryptocurrency, and we have just scratched the surface of crypto’s applications.

 It’s time to put what you learn to use. Download the Abra app and begin your crypto journey today.

 

Download the Abra app (Android, iOS) and begin trading or earning interest on cryptocurrency today!

Watch our video series: introductions to cryptocurrencies, Money Talks, and more!

Abra supports 117 cryptocurrencies and counting.