How To Invest In Cryptocurrencies (Beginners’ Guides)

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How To Invest In Cryptocurrencies (Beginners' Guides)
How To Invest In Cryptocurrencies (Beginners' Guides)

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This is the 21st century and the world has gone digital. So if you are not among those who make money online, then you are missing out. One of the numerous ways one can make money online is via trading and investing in cryptocurrencies.

In case you have not also noticed, the world is moving at a fast pace regarding the use of cryptocurrency and you might just be the only one not aligned with the crypto trend.

I am a cryptocurrency investor and enthusiast and have been in the game for over four (4) years to date. I have made a great fortune from cryptocurrencies and this goes on. This article on “How to invest in cryptocurrencies (beginners Guide)” was borne out of my wealth of expertise in the crypto world.

For a whole lot of people, the word ‘Bitcoin’ or ‘Cryptocurrency’ may not be a new one. Many are aware or have heard testimonies from those who have made enormous wealth just by trading or investing in cryptocurrencies, but they don’t just know how to go about it.

Most folks are just confused about how to invest in cryptocurrencies and make money from them. It is okay if you don’t have prior knowledge on how to invest in cryptocurrencies, this article is actually for you.

The main purpose here is to provide useful information to my readers, as well as provide a guide on how to start investing in cryptocurrencies, to make very good money from time to time. So stay glued and read to the end.

Trading and investing in cryptocurrencies would require one to register an account with a good and reputable Exchange. A Cryptocurrency Exchange is a digital exchange or business platform that allows its customers to trade or invest in cryptocurrencies (trade cryptocurrencies for other financial assets like fiat money or other cryptocurrencies.)

There are so many exchanges where one can trade and invest in cryptocurrencies. The likes of Binance, Coinbase Pro, Kraken, Kucoin, Huobi Global, Luno, Paxful, Bitfinex, Gate.io, Poloniex, Bittrex, OKEx, … In fact, as of when this article was written, there are over 300 Cryptocurrency exchanges in the world.

Learn More>> https://coinmarketcap.com/rankings/exchanges/

Prospective traders or investors of cryptocurrencies are advised to be careful when choosing an Exchange. Internet is full of scams today and people lose money on daily basis. It is good to seek the guidance of a mentor or recommendations from those who are already in the system, before settling for a particular one.

THIS ARTICLE IS ON CRYPTOCURRENCIES INVESTING IN BINANCE EXCHANGE.

Binance Homepage
Binance Homepage

Binance is not just the most traded exchange in the whole world It is the most reliable of all the cryptocurrency exchanges mentioned above, Binance remains number one, and the best of all and is recommended for anyone serious about trading or investing in cryptocurrencies.

What do you need to know about Binance Exchange?

Binance Exchange was founded in 2017. An exchange that strongly focuses on the trading of altcoins (Altcoin refer to those cryptocurrencies that were launched after Bitcoin; i.e. cryptocurrencies that are not bitcoin).

Binance Exchange is used by a million traders and participants worldwide for trading/exchanging and investing in various cryptocurrencies; offers trading in over 500 cryptocurrencies and virtual tokens, more than 100 different trading pairs between different cryptocurrencies, and between fiats and cryptocurrencies.

Today Binance has grown to become the most popular and reliable exchange to trade or invest in cryptocurrencies.

Binance is the easiest exchange to get started with if you want to begin your journey on cryptocurrency investing and trading.

Another good thing about Binance Exchange is that the interface is very easy to use. Apart from the Desktop version, it also has a mobile app that enables you to trade using your mobile phones.

Binance

How safe is Binance Exchange

Binance Exchange is a safe and very secure platform to buy or sell cryptocurrencies quickly and their trade fees are extremely low. Little wonder most traders in the whole world trade on Binance Exchange.

Binance Exchange dominates the world’s exchange space; a significant volume of daily crypto trading takes place in Binance.

Binance

How to make money in Crypto Trading and Investing in  Binance Exchange

In this article, I’ll introduce to you the different options and products available for you to make money as a cryptocurrency investor or trader on the Binance platform.

For you to understand this write-up, you need to quickly sign up for a Binance account first. Click below to sign up fast. This will help you to make quick references and fully grab what investing in Cryptocurrencies is all about. Also, you don’t have to start trading; it is just for you to have a full grasp of the Binance Interface

Account signup on Binance Exchange or any other cryptocurrencies Exchanges is FREE. Please note this!

Steps To Get Started

  1. Go to https://www.binance.com
  2. On the home page top menu, click >> register.
  3. You will be redirected to a form page you would be required to enter a valid email address and create a password. Password Hint: Ensure you use a strong password made up of a combination of uppercase, lowercase, numbers and special characters
How to signup on binance
Binance signup
  1. In the space for Referral ID, ensure you have my ID 25660385 (Optional)
  2. Check Box to Agree to Binance Terms of Use
  3. Click Register.
  4. An email will be sent to you, Click on Verify Email to complete your registration

On successful registration, it is recommended that you enable a 2FA (two-factor authentication) on your account. This is a security feature that adds a second layer of protection to your account.

When using 2FA, a user enters his password and a second code which is generated by a Google Authenticator app, or that which is sent to a mobile device as SMS.

Binance

How to buy Cryptocurrencies on Binance

Users can easily buy Bitcoin and other cryptocurrencies using a wide range of payment options, including bank transfer, credit or debit card, and cash. There’s a payment option for everyone on Binance.

Binance accepts a wide range of currencies and makes it easy for you to buy crypto using US Dollars, Euros, Pound Sterling, and other fiat currencies. You can also use a wide range of accepted stable coins such as Binance USD (BUSD), Coinbase USD Coin (USDC), PAXOS (PAX), Tether (USDT), and True USD to buy crypto.

Binance also works with verified and trusted partners to give you a secure and seamless crypto-buying experience.

Once you complete the purchase, Binance will deposit your new cryptocurrency directly to your Binance wallet. You can immediately commence trading or investing your purchased cryptocurrency on the many products and services on the Binance Platform.

Various ways to Trade or Invest in Cryptocurrencies on Binance Exchange

Find below some of the ways you can make money from Binance. Note there are a million ways you can earn from trading and investing in cryptocurrencies via the Binance platform, you will become familiar with most of them as you grow in the system. For now, all you need are the basics.

This article will dwell mainly on the fundamental approaches to trade, and investing in cryptocurrencies on the Binance exchange.

#1. HODLING

This simply means keeping your cryptocurrencies over a given period with the hope their financial value will appreciate. Binance wallet is a safe and simple way to manage your cryptocurrency assets.

For example, those who bought Bitcoin years ago got it less than $7000. Today, the value of Bitcoin has appreciated to above $50,000. Apart from Bitcoin, there are many other cryptocurrencies with a very good prospect that can still be hodl.

Coin Marketcap, www.coinmarketcap.com will give you a ranking of the various cryptocurrencies available. You can buy some of these, especially those on the top ranks, keep them for some years.

Please do read the info about any particular cryptocurrency and make proper findings before settling for it.

Choice Of Cryptocurrencies To Hodl

Newbies are often poised with the challenge of making choices of the particular cryptocurrency to invest in.

Note: not all cryptocurrencies are good for hodling. Some are just ideal for the short term, some for the long term, while others could just be mid-term hodling.

If you chose long term cryptocurrency investing, consider these key factors:

  • Is the cryptocurrency designed to solve a given problem? Check the problem statement and see if it has a peculiar problem it was designed to address.
  • What solution(s) is the coin trying to proffer?

Refer back to www.coinmarketcap.com for detailed info about any cryptocurrency.

#2. TRADING ON BINANCE EXCHANGE

This simply involves buying a given cryptocurrency when it dips, and selling when the price appreciates…simply put as Buy Low; Sell High. So many factors such as market force and other fundamentals can make the price worth of a given cryptocurrency either rise or fall, in a given time.

A smart trader or investor of cryptocurrencies will be smart enough to follow the market trends to know the ideal time to buy or sell his cryptos.

Binance exchange supports 3 types of trade orders:

  • Limit order,
  • Market order, and
  • Stop limit orders.

A Limit order will be executed only at the limit price the trader sets or something better is reached. A market order is executed immediately, this is however done at the best market price available. Stop limit order will be executed at a specified price only if a given stop price has been reached

Trading is one of the major ways people make money on Binance. Over 70% of users of Binance Exchange are mainly those who trade cryptocurrencies for fiats or other cryptocurrencies.

Cryptocurrency investing and trading is done 247 on every exchange. The market is open every day, meaning if you know what you are doing, you will be making money from time to time.

Cryptocurrencies investing or trading has made a lot of millionaires, the same way it has made a lot of people lose much money. It is recommended you trade or invests in cryptocurrencies with the funds you can afford to lose. Cryptocurrency trading and investing is extremely risky.

Cryptos are very volatile. When you buy at the wrong time and/or sell at the wrong time, you will likely lose money. You should seek some form of knowledge about trading or investing in cryptocurrencies before you engage yourself…This is why this article is for you.

More so, a lot of people get their emotions involved when trading and investing in cryptocurrencies. This is completely wrong. Emotions can propel you to make disastrous moves and sell off at a very wrong time. Those who can’t handle their emotions during trading may have to consider automating their trades or using a Crypto Trading Bot in all trades.

When you trade or invest in cryptocurrencies, you simply do so because you believe in cryptos. No point in being scared of volatility; prices will drop and rise from time to time. You need a great deal of patience when prices drop, you don’t sell at that moment, hodl until prices bounce back and put you in profits.

Before you buy any coin…

Before you buy any cryptocurrency, try and equip yourself with adequate information about the particular coin. This is why you need the site www.coinmarketcap.com. Simply search for the cryptocurrency, click on it and get all detailed information about the coins.

Also, go to the main website and read the WHITE PAPER of the cryptocurrency. The white paper is a pdf guide of the coin project. It tells you what the coin is all about, the utility it provides and the value to humanity.

Investing in cryptocurrency that doesn’t solve any real-world problem doesn’t worth it, you might lose your money.

My Winning Trading Strategy

The general principle is that you attempt to buy at lower prices, and sell when prices appreciate.

I choose coins that have a very good market cap; in billions of dollars and above. I also consider the volume in circulation too. When much volume is in circulation or trade, this implies the coin will be very liquid.

I also look out for big dips; so I make sure a coin dips by more than 10% over a higher time frame. I sell off ones I have more than 10% gain and keep the profits in a stable coin like USDT, and this accumulates over time. I take the profit out of the Binance platform when it reaches a given threshold.

I buy as many coins as possible when opportunities present themselves. I also sell whenever the opportunity presents itself.

What you have read here is to the best of my knowledge. You have to make your proper research or findings before Investing. You may visit the Binance site below to learn more:

https://www.binance.com

#3. BINANCE EARN

Binance earn can be likened to a cryptocurrencies savings account. The major difference between this and your normal Savings Account (in your local banks) is that crypto savings will give you much better interest from your holdings

Investing-in-cryptocurrencies via Binance earn
Binance earn

You might not be interested in cryptocurrencies trading, but still want to increase your holdings…then this section of the article is for you.

Binance platform offers users a one-stop investment solution and provides robust opportunities and appealing options for investors of cryptocurrencies to earn real good money or earn passive income from your cryptocurrencies holdings.

Binance earn offers a complete package of financial products that can enable you to earn more income through your holding.

There are various ways you can stake your coins and earn in Binance. Simply go to ‘Finance’ in the header menu, from the dropdown menu, you get a list of options to explore.

How to invest in cryptocurrency in Binance

There are options with a guaranteed principal after investing, and another option with a high yield, which provides you with more than an average gain, but risks the principal of the cryptocurrencies invested

Simply start by transferring the preferred amount of cryptocurrencies into any of the desired products below and start seeing your earnings reflect on your dashboard from the next day.

Image

1. GUARANTEED PRINCIPAL
investing-in-cryptocurrencies: Binance earn with guaranteed principal
Investing-in-cryptocurrencies. Binance earn with guaranteed principal
Savings
  • Flexible Savings

Flexible savings allows you to earn interest from the funds you deposited.

If you have some crypto funds in your spot wallet, you can deposit them into the flexible savings product and make them work for you pending when you need them.

Interests on flexible savings are sent directly to your wallet daily. Flexible Savings allows you to opt-out at any time. This is most suitable for short-term cryptocurrency investing. Your principal is guaranteed here, plus accrued interests.

Interests are calculated from the next day after you subscribe to the flexible savings product.

  • Locked Savings

The Locked savings in Binance is similar to the flexible savings product above; the only difference is that it offers a better return and you will get to lock your funds for a predetermined duration for the fund to accrue interests.

Here, the interest rate is much higher compared to the flexible savings option. In Locked savings, you can only opt-out or redeem your invested cryptocurrencies at the expiration of the fixed period.

This is a suitable choice for long-term cryptocurrencies investors or hodlers. So if you know you won’t be needing your crypto funds for a certain amount of time, you can deposit them in locked savings within this period; while you earn good interest on the fund.

  • Lending Activities

Lending Activities is a fixed term cryptocurrency investing option in Binance. This generally offers much higher returns than the fixed savings; generates high annualized interests, though not always available all the time.

They are special events that come up from time to time. Their supply is usually capped each time they pop up, this means you have to be quick to subscribe.

Here you have the option of choosing possible duration for the cryptocurrency investment and this is usually not a long time (in days)

To participate in any Binance special activities, you must be willing to check from time to time to know when any is available. To subscribe, you navigate to ‘Activity Tab’.  You also need to put an eye on announcements if you want to secure a slot.

Locked Staking

Locked staking has to do with putting up your cryptocurrencies as collateral to enable you to participate in a proof of stake blockchain.

Staking is when you give up your funds to a staking pool along with many other holders, the pool then uses it to participate in running the blockchain activities, and the pool will be rewarded with newly minted coins.

The pool thereafter, after taking their cut, hands over the newly minted coins to every user, depending on how much they have staked in the pool.

When you hold Proof of Stake (PoS) coins in your Binance spot wallet, you will earn staking rewards on your holdings; you earn greater rewards when they are locked for a predetermined period.

Here, you have a variety of duration to choose from, ranging from 7days to 90 days. This depends on the coins, however, and the blockchain. When you stake your coin, you won’t have access to use or trade or transfer them for the period chosen. When the staking period is over, you will get your cryptocurrencies back plus interest earned.

The whole process is all about holding funds in a cryptocurrency wallet to support operations of a blockchain network and getting rewarded for that. Interests on the invested cryptocurrencies can be redeemed in advance.

Crypto staking is a very good way to enable you to earn some cryptocurrencies from your holdings. This does not work with all cryptos, however, only those from blockchains that allow some form of proof of stake. To learn more about cryptocurrencies with the best staking rewards, GOTO >>(stakingrewards.com)

DEFi Staking

This involves providing financial services to users via smart contracts, to provide annualized earnings for cryptocurrency investors.

Decentralized Finance Staking supports but a few cryptocurrencies. Here. Binance invests your cryptocurrencies in projects on blockchain, essentially to make money from the projects as the case may be.

You also have the option to lock your staking or make it flexible.

LunchPool

This is a Token Lunch platform on Binance. It involves the funding of promising tokens by the user base of Binance. This process of funding is called an Initial exchange offering.

Here, users get to lock up their funds in the Liquidity pool to fund the mining project of a Token and get a share of the new token when they are being launched on Binance.

Binance Lunchpool is also a flexible term product. For those that would want to participate in Binance lunch pool cryptocurrency investing, you are staking some of your cryptocurrencies to enable you to participate in the mining or minting of new coins on Binance. Here, you can only use BNB, BTC or BUSD to stake.

This cryptocurrencies investment option is a great way to earn some passive income as you earn new tokens just by locking your funds for a certain period; you can redeem them at any point during the event.

BNB Vault

This will involve the combination of Flexible savings, BNB Defi Staking, and Lunchpool, to give the best returns to cryptocurrency investors.

In this cryptocurrency investing, your cryptocurrencies are spread over different risk investing categories to get a higher income yield.

You can only participate in this with BNB (Binance Coin). It is also a flexible product and you can ‘unstake’ your cryptocurrency at any time.

After you have staked your coin, you will receive BNB Vault assets and your interest will start accruing from the next day, and will be distributed to your account every day.

This Cryptocurrencies Investment option allows you to redeem your funds at any given time. Either of these two methods is involved: fast redemption which allows you to get your funds the same day you put up the request; but lose your interest for the day, and standard redemption where you are entitled to the interest of the day, but you fund released to you the next day.

Eth 2.0 Staking

Here, users are allowed to stake their Ethereum to support the Ethereum network and earn rewards thereafter.

You can read about this yourself on Binance. Just know that when you stake your coin here, you may not redeem it for more than 2 years.

Ethereum wants people to stake their coins for the switch over to Ethereum 2.0.

2. HIGH YIELD

Liquid Swap

Another Cryptocurrency investment option on the Binance platform is Liquid Swap, which has to do with providing liquidity to Binance with your cryptocurrencies to increase their liquidity pool and earn good interests in returns.

With the Swap market, you can trade cryptocurrencies within the private liquidity pool of Binance. This option is used mostly by institutional traders who trade large volumes and may not want to do so via the open market.

Here, you don’t add a single coin; coins are added in pairs. Eg BUSD/USDT. GBP/USDT, BUSD/DAI…most of which are stable coins pairs.

Why not deposit your funds today and become a market maker, who knows, you returns might be greater than those of any other Binance earn products.

Dual Investment

This allows you to deposit your cryptocurrency, and your earning will be based on two assets.

This high yield cryptocurrency investment option in Binance doesn’t guarantee the principal invested. It is non-principal protected, however, guarantees a good return from the invested principal. The rate of returns is fixed, the risk associated with this depends on the volatility of the market.

It is more of a bet. The returns you get here depends on the outcome of your bet at the expiry date.

Dual Investment product is like Future trading; it is more of betting. Not advised for newbies.

Lots More…

There are still more under the High Yield Binance Earn…the author decided however to stop here. Binance provides numerous ways through which one can trade or invest in cryptocurrencies.

The ones ideal for beginners are Hodling, Trading and the Binance earn options with the Guaranteed principal.

REGISTER NOW WITH BINANCE AND START YOUR CRYPTOCURRENCY INVESTMENT NOW.

https://www.binance.com/en/register?ref=25660385

Use the above referral link to sign up on Binance and get a 5% discount on your trading fees each time you trade. I may also earn a small commission from Binance if you sign up using it.

HOUBI GLOBAL

Houbi Global is also another Cryptocurrency Exchange similar to Binance. You can use the referral link below to register on the exchange and get discounts from all your trading fees:

https://www.huobi.com/en-us/topic/invited/?invite_code=9wumc

DISCLAIMER! THIS ARTICLE IS FOR INFORMATION PURPOSES AND NOT A FINANCIAL ADVICE. TRADE AND INVEST IN CRYPTOCURRENCIES WITH THE MONEY YOU CAN AFFORD TO LOSE.

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