How to Invest in Cryptocurrency in 2023?

Are you looking forward to building your investment portfolio in 2023? Well, cryptocurrency provides one of the most appealing investment options. It has an annual growth rate of over 12.8% in the global market.

Thus, if you do it right, you stand a significant chance of diversifying your portfolio and becoming filthy rich. The main point to consider is the best way to invest in crypto assets. Below we provide a simple guide that will teach you how to invest in cryptocurrency in 2023.

Simple steps for investing in cryptocurrency in 2023

One of the best ways to invest in cryptocurrency in 2023 is by directly buying the assets. It is through buying that you can begin your trading journey. Furthermore, crypto payment and trading platforms such as MoonPay provides a perfect space where you can make your investment.

The platform allows you to purchase various cryptocurrencies, such as Solana, in the most convenient way possible. Also, it provides you with a wide range of payment methods. You can choose Apple Pay, bank transfer, credit card, debit card, and many more. Here is a quick overview of how you can buy Solana with a credit card at MoonPay:

• Visit the MoonPay web page
• Then go to the buy Solana (SOL)
• Key in the amount in fiat currency or SOL you want to buy
• Enter your Solana wallet address
• Verify your basic information and email
• From there, you can proceed to purchase Solana with a credit card

As you can see from the above steps, investing in cryptocurrency is relatively straightforward. The top things to note include the following:

• The type of crypto you wish to purchase
• The payment method
• The best platform to use
• How much to spend

Top things to do when investing in cryptocurrency

Crypto investing is not as easy as many presume. If you go in unprepared or blind, you may not receive the desired results. Thus, the best way to succeed in cryptocurrency investment in 2023 is to note the following:

• Do your research

In the market, you will find several self-proclaimed financial gurus and experts. The self-proclaimed experts may sell you information but have no interest in whether you fail or succeed. Thus, when investing your money, make sure to trust no one.

Conduct your research when deciding on a potential investment in cryptocurrency. Furthermore, the transparency found in the blockchain world can be beneficial. It can help you source any information that is ideal for determining the best investment.

• Be ready for market volatility

Crypto is a high-return and high-risk investment and rides in a world of price swings by design. The cryptocurrency markets have no regular trading regulatory regimes and are very speculative. Thus, trading is often at an unpredictable rate.

If you wish to succeed, understand and analyze market drivers and the underlying technology. Also, ensure you are comfortable with the volatility before entering the market.

• Always consider timing

Timing in cryptocurrency investment is very vital. Most individuals use emotions when making investments, which can lead to a loss of value due to poor timing. One of the crucial feelings to avoid is the fear of missing out.

The fear can drive you to make investments that will not yield much. Make sure to resist the feeling and find a solid project with real promise. You can also consider trading flat.

• Never invest what you cannot lose

In the digital marketplace, you can make a lot of money. However, it would help if you were extremely cautious, or you could lose it all. If you are beginning your cryptocurrency journey, invest only in the amount you can comfortably lose.

The market can be very turbulent, and few have beginner’s luck. Furthermore, there are many things you need to consider when trading. Thus, managing risks should be among your top priorities.

• Consider diversification

In most cases, projects provide modest gains though there are chances of half-tokens gaining hundreds of dollars. The safest approach when investing in crypto is to diversify your portfolio. You can choose to invest in popular sectors such as gaming, NFTs, or Defi.

The more you diversify, the better. Diversification will help you minimize losses and bear the volatile market conditions.

The pros of investing in cryptocurrencies

The cryptocurrency world has a lot to offer individuals. Furthermore, its usage is becoming more widespread around the globe. Here are the top pros of investing in crypto:

• It involves a transparent system

All crypto transactions occur in a public blockchain ledger. It means anyone can access the transaction data and view how much cryptocurrency is available in a wallet. The transparency available is incredibly beneficial as it reduces the cases of fraudulent transactions.

• Many cryptocurrency tokens are available

There are more than a thousand cryptocurrency projects available. Thus, you can choose to invest in one that will meet your financial goals. For instance, if you have a high tolerance for risk, you can select less established crypto projects.

• High risk and high expected rewards

One common thing in all cryptocurrencies available in the market today is their price volatility. The price swings are because of the forces of demand and supply and can result in hefty returns for you. 

For instance, in 2021, Ethereum prices doubled from July to December, meaning investors had an excellent payday. Thus, investing in cryptocurrency is a very high risk, but if you have the right timing, you can get incredible rewards.

• Major global corporations are adopting cryptocurrency use

One of the signs that cryptocurrency is here to stay is its adoption by the most dominant companies in the world. You can find companies such as Starbucks, Tesla, and Overstock allowing you to spend cryptocurrency on their services and products.

• Secure blockchain technology

The infrastructure surrounding cryptocurrencies is one of the main reasons for their growing popularity. That is blockchain technology. No one can erase any entry in the blockchain. In addition, no hacker can hack into an entire chain. It means that any information available is very secure from any form of compromise.

• Ease of access

Cryptocurrency is accessible to anyone. You only need an internet connection, a smartphone, or a computer to begin your investment process. In addition, all investing processes are relatively fast compared to setting up a bank account.

The top cryptocurrencies to invest in

In the market today, you can choose to invest in thousands of cryptocurrencies. However, the process of selecting the best can be challenging and cumbersome. If you are a beginner, here are some solid projects you can consider in 2023:

Solana (SOL)

In the last few months, the popularity of Solana has been growing tremendously. The astronomical rise is attracting many investors as they discover its incredible functionality and high usability. In addition, cryptocurrency offers an excellent long-term investment solution.

BNB

BNB is one of the best cryptocurrencies to invest in 2023, and it is among the largest in the world. Furthermore, Binance is responsible for issuing it and ranks among the top five for market capitalization. 

Bitcoin

If you are entering the cryptocurrency market for the first time, Bitcoin is the best option for you. It has a large trading volume and market capitalization. Bitcoin is also one of the least volatile cryptocurrencies.

Ethereum

Ethereum has grown tremendously since its launch. It currently ranks as the second-largest cryptocurrency in terms of market capitalization. The cryptocurrency has applications such as smart contracts, making it popular among program developers. Thus, a viable investment in 2023.

Investing in cryptocurrency

Investing in cryptocurrency is a risky business as the prices are often volatile. However, the potential high rewards of crypto investment make it incredibly attractive long-term. One main benefit of crypto investment is that the investing processes are relatively straightforward, and anyone can do it. You only need to research the best cryptocurrency that meets your financial goal.

FAQS on investing in cryptocurrencies

What is the best cryptocurrency to invest in the global market?

The thousands of cryptocurrencies available in the market can make the process of choosing the best investment project challenging. If you are starting your crypto investment journey, stick with the most established projects. You can consider BNB, Solana, Bitcoin, or Ethereum. Also, you can consider conducting independent research to gain as much knowledge as possible.

Is investing in cryptocurrency profitable?

Cryptocurrency provides one of the best ways you can expand your portfolio. The crypto market is growing in popularity, and many major companies are adopting it. Thus, indicating its significant potential. If you invest at the right time, there is a high chance of reaping amazing results. However, make sure to note the associated risks of price volatility.

What are the top risks of investing in cryptocurrency?

Despite the many benefits of cryptocurrency investments, there are also risks. For instance, the market is very speculative. It means the focus is often on short-term prices instead of long-term value. The speculative nature also increases the chances of price volatility.

Author bio: Cosmas Mwirigi

Cosmas alias Cosii-Riggz is a technology enthusiast and SAAS writer who helps clients understand products by explaining services for businesses. 

He has been featured on websites such as PV Magazine and Bitcoin Kenya. He likes traveling to new places and exploring what’s new on the internet.