How to get started in crypto investing

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Best choice of Crypto Exchange

How long is a piece of string? at this point due to sheer competition between exchanges we are seeing similar prices and spreads, it is not so much of which exchange is the best, it is more of a personal preference of the interface, customer support, payment methods, etc. I personally vouch for Kraken, as back in 2019 it seemed to be one that offered the most choices of coins and seemed to have a cool interface. Coinbase is also a good exchange, I've heard Binance is also a good option.

Account Verification and Deposit options

throughout the common and well-known exchanges, there is a common method of verification which is via :

  1. Passport
  2. Driving license
  3. Nation Identity card

a document of only 1 of these will be required prior to opening an account with an exchange.

The common payment methods are :

  1. Bank transfer
  2. Paypal

There may be other options with some exchanges (for example some exchanges may allow skrill)

The Investment Thesis

The logical and solid way to enter the crypto market is to establish a portfolio that consists of the main coins with altcoins in a systematic structure such as:

BTC: ETH : XRP: ALT

3: 2: 1:?

The ‘?’ on the part of altcoins depends on how volatile and diverse of portfolio one wants, there are many coin projects which are worth investing in over the long-term, especially due to the introduction of metaverse and NFTs, therefore it could be a good choice to increase altcoin investments. Altcoin allocation in a portfolio can be from 1 part to 4 or 5 parts. some of these coins include :

  • Solano
  • Stellar
  • Cardano
  • Monero
  • Polygon

and many more…

Investment Structure

The question remains, How much to enter and when? There are a few ways to go about this.

  1. Aggressive

This can be done by entering the market at the current price with the full amount)

2. Normal

Enter with dollar-cost averaging 2–3 positions, for example entering with half the position on bitcoin rn and have the other half for a limit order at $20,000.

3. Conservative

Enter with dollar-cost averaging of more than 3 positions, for example entering with 1/4th position size at the following 4 points :

a. Current Price

b. $20,000

c. $15,000

c. $10,000 (very safe play, a ‘just in case)

it does not have to be equal 1/4th split of a position, you may be heavier at the top levels and add small positions at the bottom levels or vice versa.

Disclaimer

This is not financial advice. There are risks associated with investing in securities. Investing in cryptos, stocks, bonds, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses.