how to invest in cryptocurrency in 2022

Cryptocurrency trading is the process of buying one cryptocurrency with another. It’s also possible to trade currencies with fiat money (cash),

How to invest in cryptocurrency

I congratulate you for finding my post when I was unsure that the topic interested you at all. This is the first step into the journey that is the world of Cryptocurrency. Despite the market crash in the last few weeks, I am HODL-ing and DCA-ing into the dips to average out my positions in crypto.

With this beginner's guide to investing in cryptocurrencies, I hope that you're able to begin doing so and benefit as I have.

Step. 1

The important thing is to have an emergency fund to handle difficult times; what those funds consist of is for you to decide. Are you trying to figure out how much money will be involved in the next six months (e.g., grocery bills, traveling, having fun)? Or is it something that will come to an end, such as your employment with an already set budget for the duration? Although this may be tedious to you, it's not without risk. That's why prudence should be exercised first and caution exercised not to imitate something you're not educated in. Many people can tell you about someone who invested a thousand dollars and became a millionaire, but you won't hear much about people who've been left with nothing to show for their thousand-dollar investment.


Don't get in over your head; start out with small steps and investments. Buying Bitcoin and Ethereum for passive investments are solid starting points. This is also called dollar-cost averaging, and because the crypto market can be so volatile, either averaging up or down in dollar amounts may be better. One might start out by investing around $50-$100 a month here. You can also diversify your portfolio with other investments like ETFs, bonds, and the like. You can add more as you become more financially secure. There is some flexibility there depending on one's situation in life (I have house renovation expenses coming up).


Once you have the investments for your passive portfolio, you can try to expand into other areas of investing. To do so, it is crucial to first get those points laid out, so you do not crash and burn. Do so at first sparingly, putting only a maximum of 10% of what you are willing to risk into active investing. Consider looking into crypto investments, new coins, and platforms that generate returns on crypto. To prevent poor investment performance, diversify your holdings. Explore CELI and distributed investment platforms like Hodlnaut, Nexo, Celsius, Anchor Protocol, and YouHodler Avalanche. Owning a master node by staking 32 ETH. And there are plenty of other high-risk options, like leverage trading in crypto. These are not the safest methods but are worthwhile if you're looking for more risky alternatives. For this plan, I'm going to save up for six months. Once I have, I'll put 5k in crypto investments with let's say, an interest-earning platform. Then I'll just watch as it earns interest while doing what it does! It doesn't matter if I lose it all because I already built a base in the first two steps!


In fact, this is the pinnacle of your investment, and it will likely take a long time before you can reach anything like it again. As a result, you should invest in higher-risk investments, like Defi Protocols. That last point is an extremely expensive, though effective, tool. A liquidation pool will potentially earn more than 100% in rates. Please be warned that a risk called impromptu loss can happen to your assets, which you'll want to divide accordingly: 1-5% is a great allocation. To name a few, protocols such as pancakes, pancake bunny, and apeswap may be of interest to you.

To summarize, it is important to understand that I am not a financial advisor and I am merely telling you how I manage my crypto investments. It is important to do your own research (DYOR) and be wary of Defi protocols because it can be confusing to understand terms, fees, and the steps involved.

Cryptocurrency has exploded into the digital market, and it’s here to stay. That’s why it’s important to familiarize yourself with this emerging trend as early as possible. Luckily, there are plenty of ways to get your feet wet with cryptocurrency without risking any real money—and this guide will explain exactly how you can do that and then walk you through the process of trading cryptocurrency to help you build your portfolio and get started investing in this booming market that shows no signs of slowing down any time soon.

What is trading?

Trading, in its most basic sense, is when you buy one cryptocurrency with another. For example, you might purchase Bitcoin with Ethereum. Once you’ve purchased a certain amount of a cryptocurrency like Bitcoin or Ether, you’re able to transfer it from your online wallet (where your money will be stored for trading) into an offline cold storage wallet that only you can access.

How to trade cryptocurrency?

Cryptocurrency trading is the process of buying one cryptocurrency with another. It’s also possible to trade currencies with fiat money (cash), but that requires a different kind of platform. The first step to learning how to trade cryptocurrency is to choose a platform that’s right for you. Most platforms follow the same basic model, with minor differences depending on region, features, and user-friendliness. Once you’ve decided on a platform, there are two main ways to trade cryptocurrency: Traditional cryptocurrency exchanges allow users to trade using various fiat currencies (such as USD) or cryptocurrencies such as Bitcoin or Ethereum.

What is crypto mining?

Crypto mining is a process in which computing power is used to solve complex mathematical problems, which are a result of encryption within transactions on cryptocurrency networks. The network uses these problems as proof of work that validates each transaction. As a reward for solving these problems, crypto miners are given transaction fees and newly minted currency. This is also how new currency is added into circulation.