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Investing in cryptocurrency – what you need to know

To invest in cryptocurrencies, you'll need to open an account with a reputable cryptocurrency exchange, purchase your desired cryptocurrency using a debit card, credit card, or bank transfer, and then store your cryptocurrency in a digital wallet for safekeeping. Read on to find out how to invest safely in cryptocurrencies.

How to invest in cryptocurrency?

Congratulations, you done your due diligence and educated yourself in the ways of Crypto. Now you are actively looking for a way to physically invest in cryptocurrencies and need a guide as to how to do it. Well, you have come to the right place!

Investing in cryptocurrency involves several steps, and here's a general outline of what you'll need to do.

Choose a cryptocurrency exchange

A cryptocurrency exchange is a platform that allows you to buy, sell, and store cryptocurrencies. There are many exchanges to choose from, and some popular options include Binance, Coinbase, Kraken, and Gemini, but which to choose…

Choosing the right cryptocurrency exchange is important to ensure that you have a safe and reliable platform to trade cryptocurrencies. Here are some factors to consider when choosing a cryptocurrency exchange:

  • Reputation and security:

Look for an exchange with a good reputation and a strong security record. You can check reviews and ratings from other users and look into the exchange's security measures such as two-factor authentication and cold storage of funds.

  • Supported cryptocurrencies:

Different exchanges support different cryptocurrencies, so make sure the exchange you choose supports the specific cryptocurrencies you're interested in trading.

  • Fees and trading options:

Exchanges may charge different fees for buying and selling cryptocurrencies, so compare the fees across different exchanges. Additionally, consider the exchange's trading options such as limit orders, market orders, and margin trading. Some exchanges are charging nothing to trade particular cryptocurrencies in a bid to increase the volumes on their exchange. Zero commission rates are always something to consider but make sure you understand the terms and conditions for example if the zero commission is for a limited period and if so, when will it will end and then how much it will cost to trade with that exchange.

  • User interface:

Choose an exchange with a user-friendly interface and easy-to-use trading tools. The exchange should also have responsive customer support to assist you in case of any issues.

  • Payment options and processing times:

Check the payment options available on the exchange and consider the processing times for deposits and withdrawals.

  • Regulations and compliance:

Some exchanges may be subject to different regulations and compliance requirements depending on the country they operate in. Make sure the exchange is compliant with applicable laws and regulations in your country.

Overall, consider your specific needs and preferences when choosing a cryptocurrency exchange and research each option thoroughly before making a decision.

Create an account

Once you've chosen an exchange, you'll need to create an account by providing your personal information, such as your name, email address, and phone number.

Verify your identity: Most exchanges require you to verify your identity before you can start trading. This usually involves uploading a copy of your government-issued ID and a selfie.

Add funds to your account

You can fund your account with a bank transfer, credit card, or debit card. The fees and processing times vary depending on the exchange and payment method. Only fund your account with money that you can afford

Buy cryptocurrency

Once your account is funded, you can buy the cryptocurrency of your choice. You'll need to decide how much you want to invest and which cryptocurrency you want to buy (for example, BTC/USD or ETH/EUR). Neomony offers simple but effective solutions to customers (for many institutional level services its free to users) simple solutions that can give you an edge. Please read this blog to find out more.

Store your cryptocurrency

After you buy cryptocurrency, you'll need to store and manage it in a digital wallet. It is important to keep your cryptocurrencies safe, so it is crucial to choose the right type of wallet. There are two main types of wallets: hard wallets (also known as hardware wallets) and soft wallets (also known as software wallets). Some exchanges offer built-in wallets, but you can also use a hardware wallet or a software wallet.

Hard wallets are physical devices that store your cryptocurrency offline. They are called "hard" because they are tangible and can be held in your hand. They are designed to be extremely secure and are typically small, USB-like devices that are easy to carry around. Hard wallets store your private keys (the code that allows you to access your cryptocurrencies) on the device itself, which means that they are not connected to the internet and are therefore less susceptible to hacking attempts. Examples of hard wallets include Ledger and Trezor.

Soft wallets, on the other hand, are software programs that are installed on your computer or mobile device. They store your private keys on your device and connect to the internet to send and receive cryptocurrencies. Soft wallets are more convenient than hard wallets because you can easily access your cryptocurrencies from your computer or mobile device. However, they are also more vulnerable to hacking attempts and malware attacks. Examples of soft wallets include MyEtherWallet and Exodus.

In general, hard wallets are considered to be the most secure way to store cryptocurrencies, while soft wallets are more convenient but less secure. It's up to you to decide which type of wallet is best for your needs and preferences. At Neomony we never have access to your cryptocurrency. We offer services that you alone use. The good people at Neomony are here to help but will never control anything in your wallet.

Monitor your investments

Cryptocurrency prices can be volatile, so it's important to monitor your investments regularly. You can use tools like price charts and alerts to keep track of your investments. At Neomony your account will have access to dashboards that will simply display your cryptocurrency investments in a way that is easy to understand.

Putting currency back into your bank account

At some point you are going to want to spend some of your cryptocurrency. If you sell your cryptocurrency for fiat currency (such as US dollars or euros) , you can withdraw the fiat currency to your bank account. This typically involves placing a sell order on the exchange and waiting for it to be filled by a buyer. At Neomony this process has been set up in an easy-to-follow way.

Finally, you can withdraw the fiat currency to your bank account. This usually involves entering your bank account information on the exchange and initiating a withdrawal. It may take several business days for the funds to appear in your bank account, depending on the exchange and your bank's processing times.

With Neomony and our team of experts by your side, take your trading performance to the next level today ! Join the Neomony platform and uncover the most effective trading strategies on the market !

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