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how to invest in cryptocurrency and earn money
Investing in cryptocurrency is a good way of earning some extra income. Anyone can learn how to invest in cryptocurrency and earn money, by the end of this article you’ll be able to start yourself, but you should keep in mind that this market is highly volatile and if you are not careful you can lose your money so you should always do your own research before investing.
What is cryptocurrency?
A cryptocurrency is a digital currency or virtual money designed to work as a medium of exchange that uses strong cryptography to secure financial transactions and it works on blockchain technology. There are thousands of cryptocurrencies available in market which you can buy from different exchanges. Bitcoin is the first and most recognizable cryptocurrency between them.
How to invest in Cryptocurrency?
For investing in cryptocurrency you need to open an account on a cryptocurrency exchange. There are several different exchanges to choose from, with the most popular being WazirX, BitBns, and Paxful . These exchanges allow you purchase currencies like Bitcoin and Ethereum with various payment methods like Paytm, PhonePe, Bhim etc
You can start with as low as 2000 Rs.
Here is a list of best cryptocurrency exchange in India.
Which Cryptocurrency you should invest in :
There are various cryptocurrencies in which you can invest. It is important to educate yourself about different cryptocurrencies by watching YouTube. Here is a video that explains different categories of cryptocurrencies and which one you should choose to invest.
Top 5 cryptocurrency to invest in according to me :-
- Bitcoin
- Ethereum
- BNB
- ADA
- DOT
You can buy these coins from WazirX
Note: Always do your own deep research before investing in any coin
How to store your cryptocurrency?
You should never keep your cryptocurrency on exchanges because exchanges are prone to hacks. You should store your cryptocurrency in a digital wallet. There are different types of wallets available on the internet. You can have either a software wallet or a hardware wallet. Software wallets are necessary to enable active trading, as they make accessing your currency much easier.
Hardware wallets are physical devices – they look a bit like USB drives – and they are more secure than software ones. You can use them for currency that you don’t expect needing frequent or easy access to. Think of a software wallet like a checking account, whereas the hardware wallet is more like your savings account.
Best bitcoin wallet for android
How to earn money from cryptocurrency?
There are various ways in which you can earn from cryptocurrency. The easiest method is to invest in cryptocurrency and leave your coins in a wallet for long term and after the price of the cryptocurrency increases you can send your coins back to exchange from wallet and sell them for profit.
Other methods to make money with cryptocurrency :-
- Trading
- Mining
- Staking
- Micro Tasks
- BTC Affiliate
Top 10 ways to make money with cryptocurrency
Some tips before you start investing in cryptocurrency
1.Carry out a deep study before you invest in any cryptocurrency.
You should understand and gain knowledge about the coins you want to invest in. Investing in cryptocurrency which you don’t know about can lead you to loss.
2.Don’t invest based on hype and noise.
You shouldn’t make decisions based on hype and noise — it’s risky. Just because people are saying it good that doesn’t mean it’ll always give you profit.The price might crash all of a sudden, leading to a terrible loss. Always study and do your research before investing because you need patience and the right knowledge to make worthwhile profits.
3.Understand the risk and invest what you’re willing to lose.
You should never invest in cryptocurrency by taking debt or by using money that is for some another important work. There is always risk involved in crypto market and you can lose all your money.
4.Proportioning your money on more than one coin.
Dividing your investment in different coins is better than investing all your money in one coin. This is a good strategy to reduce risk of loss as one of your coin can always overperform the second one.
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