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How to Start Investing In Crypto with Cardano?

by Olufisayo
investing in Cardano

When it comes to investing, one can never be too cautious. This is especially true in the cryptocurrency market. No doubt, there are several crypto coins you can buy. But without a good understanding of the crypto you are buying, you can lose a major part of your investment in a twinkle of an eye. But if you invest in a good coin you can turn over a profit in no time.

One of the new coins in the crypto market is ADA or Cardano. Over the past few months, Cardano has increased considerably compared to Bitcoin and Ethereum. Despite being a new crypto, it is a good investment no doubt, and while you read this article you will understand why.

Steps to follow when first investing in Cardano

Cryptocurrency is full of adventure, and by adventure, we mean learning new and exciting things.  If you are new to the world of cryptocurrency and want to invest in crypto, then this article is for you. In this section, we highlighted five steps to follow, which include all you need to get started.

Step 1: Do your research

The first thing you need to do is your research. Don’t take anyone’s word for it alone, you need to be sure of what you are doing. Yes, we get that everyone is saying Cardano is a great coin, but then again, research about it yourself to find out why everyone is saying it is a great coin.

By doing so, you will know the upside and downside of the coin. Because many times, people tend to talk about the upside of things and neglect the downside. And perhaps the downside might be a deal-breaker for you. So, before you invest a nickel in any coin, research to be sure the coin is right for you.

Step 2: Open a storage wallet

If you are sure after your research that Cardano is the right coin for you, then what’s next is to open an investment account. Note, that your investment account is where you will be storing your cryptocurrency. You need secure cryptocurrency storage to ensure you don’t lose your asset due to hacking or lack of institutional backing.

Unlike some exchanges, Bitvavo.com is a reputable exchange that provides you with a hosted wallet where you can easily store your Cardano. With Bitvavo hosted wallet, you don’t have to worry about an online hack as the private keys are stored in a separate and offline device.

Step 3: Fund your wallet

Now that you already own a secure storage wallet, what is next is funding the account. Let´s say you already own a wallet, funding it would be effortless. Wallets offer users the flexibility to make use of different payment methods to buy Cardano.

You can buy Cardano with credit or debit cards, as well as exchange other cryptocurrencies for Cardano. When funding your account, it is advisable as a beginner to start small. Given Cardano’s short history, and yet highly unpredictable behavior, it is wise to keep your initial investment small, then observe its behavior then decide if you are comfortable increasing it or not.

Step 4: Invest what you can afford to lose

Very importantly, do not invest more than you can afford to lose. The crypto market is very volatile as such, the price can rise as much as it can fall. While investing, most people only consider how much they stand to gain when it rises.

It is also very important to consider how much you stand to lose in case it falls. Advisably, if taking financial risks makes you nervous, then you should think twice before investing in crypto. But if you are a risk-taker, then you can invest a portion you are comfortable losing in case things go south.

Step 5: Decide when to buy and sell

Lastly, you need to have a strategy. Since the cryptocurrency market is highly volatile, you can use it to your advantage if you are a short-term investor. As a short-term investor, you can sell when the price rises to intend to repurchase it when the price is lower. The price difference between when you sold it and when you purchase it will be the profit margin.

To sum things up, anyone can invest in cryptocurrency. All you need is the will to understand the cryptocurrency market and funds, and you are good to go. You don’t need to worry about where to store, buy, or sell cryptocurrencies like Cardano.

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