Beginner's Guide to Investing in Cryptocurrency in 2021

Last updated: 2020.12.27

The year 2020 has been a very challenging year for everyone on the planet because of the global effects of the COVID 19 pandemic. But there is hope that things will finally turn out for the better next year.
Investing your money is surely a good move to make in 2021 and one of the best ways to do this is investing in crypto currency. According to many experts on digital currency, 2021 is going to be a good year to invest in cryptocurrency. You should take advantage of this insider tip and begin looking at your investment options.
For many first time investors, navigating the cryptocurrency landscape can be a bit daunting. To help you start your journey, here are some things you need to remember to ensure your foray into cryptocurrency investments will be relatively painless.

Choose your trading platform

You’d think that learning how to invest in cryptocurrency or choosing which investing in cryptocurrency are the only things you need to worry about. But the rise of cryptocurrencies has also meant the establishment of many different trading platforms and it can get quite overwhelming.
So what should you remember when choosing a cryptocurrency trading platform? First, choose a platform that has a good reputation among traders. Usually, the most popular platforms are the safest choices (they’re popular for a reason) and using one that has built a good reputation will allow you to just focus on how to invest in cryptocurrency and not expending energy just wrestling with an unfamiliar, obscure platform.
You should also choose a platform that offers different types of cryptocurrencies. This will help you as a trader when you’re still trying to choose which cryptocurrency to buy. As mentioned, many of the popular platforms carry many of the popular cryptocurrencies and even some of the new, emerging ones.

Make reasonable trades

You’ve already chosen a trading platform, you’ve learned how to invest in cryptocurrency, and you’ve chosen which cryptocurrency to buy and invest in. Now it’s time to trade.
This is where many mistakes happen and you should learn from the people who’ve learned the hard way. Only trade when you have a good reason to do it – have a clear purpose for doing your trade.
Are you planning to do day trading? Or are you planning to scalp? Don’t trade just because of a whim. Have clarity and have a general objective for what you’re doing. Better do it slow but with purpose than to rush your decisions and then incur losses.

Learn to manage risk

Many traders think that learning how to invest in cryptocurrency or choosing the winning cryptocurrency to buy means they’ve learned everything. But the third thing you need to learn and probably be immersed the most in, is to learn how to manage risks.
Trading in cryptocurrencies is fraught with high risks. It’s so easy to lose your head over the prospect of a potential big profit only for that to disappear and end up with you incurring huge losses.
Temper your greed, as they say. The wise traders don’t rush into something that many thing will generate huge profits, because they know that it also contains huge risks. Slow and steady is the way to go.

The best cryptocurrency to buy in 2021

Many of you will probably still be wondering what is the best cryptocurrency to buy in 2021. Here are some that we would recommend.
Bitcoin
Many traders learned how to invest in cryptocurrency through Bitcoin mainly because it is the most popular cryptocurrency and one of the most widely traded in the world. Going into 2021, it is still one of the safest choices.
Ethereum
One of the most liquid cryptocurrencies in the market right now, Ethereum is actually second to Bitcoin in the most popular cryptocurrencies in the market. If you’re going to learn how to invest in cryptocurrency, you can’t go wrong with Ethereum, especially since it has a very loyal team and community that supports it.
Litecoin
One investing in cryptocurrency is Litecoin. It is very liquid and has a large market cap. Not only that, it has a block reward of 12.5 LTC, which is one of the highest block rewards among cryptocurrencies.
Yuan Pay
One cryptocurrency worth considering for 2021 is Yuan Pay. It may not be as popular as the others mentioned above but it has its own unique benefits that make it worth considering as a good choice when learning how to invest in cryptocurrency.
Yuan Pay is the first government-approved cryptocurrency in the world, which means its potential for growth can be bigger than even bitcoin.