Crypto assets are money existing and functioning in digital form only – you cannot touch them or put them into a pocket – crypto coins are stored in digital wallets that have passwords, so you are the only one who can reach them. Still, crypto is the same money with a similar application:
- many online stores accept crypto as a payment method;
- booking and travel firms;
- airplane tickets;
- crypto is also used to reward players in blockchain games;
- Some restaurants and coffee houses accept digital coins.
However, the main application for crypto assets is trading and investment. In this article, we will offer you a cryptocurrency guide on making money with crypto and making your first steps toward success in this field.
What is Crypto, and What Does It Depend On?
The crypto market made a leap from the first year of its emergence to today’s time. In 2021, the total market capitalization exceeded $2.9 trillion. The year 2022 turned out to be a challenging period for the crypto industry, not even mentioning the overall situation in the world. So many investors left the market, trying to save their funds in more reliable places. The fact is the crypto market is never stable. Such huge fluctuations are pretty normal for it.
The reasons for market trends changes:
- People’s readiness to invest amid the present situation in the economy
- Local regulator’s restrictions
- Media coverage concerning this or that crypto project
- Inflation in the world
- Technical characteristics of every specific crypto project
- Supply of coins and demand for them.
The main driver for the market is the relationship between supply and demand – just like in traditional markets. If a crypto project creates something highly technological and valuable, its asset has real use cases, so people want to buy and hold it, reducing its supply and increasing demand. In such a way, asset prices grow. And vice versa, if a project has nothing behind it and acts to create hype, its asset will drop sooner or later without any technological filling and real application cases. With all that said, it is recommended to purchase cryptocurrency that has real use cases and valuable technology at the core.
In this regard, we would like to list the most promising crypto projects for investments in 2023:
For many investors, the market’s downtrend is the perfect time to collect promising crypto coins because they know when the trend changes, prices will go up, bringing them good incomes.
Why Buy Cryptocurrency?
People buy digital assets for two purposes:
- Investments. Mega and large-cap crypto assets are perfect for long-term investments. For example, you buy Bitcoin today when its price is low ($22) and hold it for many months until the next bull market comes and takes the BTC rate to the moon. It is the easiest way to make money with crypto, however, it also requires the ability to analyze the market and react to them in time.
- Trading. It does not necessarily mean buying assets at low prices and selling them at high prices, however, this option is also working. Trading means making money from crypto price changes, and it does not matter whether the rate moves up or down. Different tools allow one to earn on the dropping market, and we will talk about it later.
Where to Buy and Sell Cryptocurrency?
Let’s talk about how to purchase cryptocurrency. There are some options:
- You may address a crypto broker, and one will buy crypto for you and take a commission.
- You may use a p2p or decentralized crypto platform and buy crypto online directly.
- You can use a cryptomate if there is some in the place you live.
- Or you may use a centralized exchange.
The latest option is the most common among beginner and advanced traders. Here are some reasons why people prefer a centralized exchange:
- High level of client protection and safe transactions. Centralized exchanges are focused on the fund’s safety and share the responsibility for investment with their clients. If any problems arise, exchanges help clients to solve them. Regulated platforms regularly pass certification and audit to prove the high level of their services and compliance with the laws in this field.
- Wide selection of trading tools and financial instruments. Regulated platforms allow users to borrow funds for margin and futures trading, offer unlimited withdrawals, and support fiat currencies for trading.
- Monitoring of transactions. It allows them to catch illegal actions and block users that commit them. Such actions protect exchanges from hackers and criminals.
- A variety of traded pairs of high quality. Regulated platforms do not list unknown or scam crypto projects. Before allowing listing, they evaluate every project and check its compliance.
- Support for customers. Clients can address customer support and ask for assistance at any time.
- Discounts and quizzes – large companies always come up with interesting competitions for their communities to raise interest and make people interact.
Guide to Cryptocurrency Purchasing
Let’s see how it works on the WhiteBIT exchange. It is the largest crypto investment platform registered in Europe. WhiteBIT has an official license allowing it to work in the markets. Over 2 million active users are fixed on the platform.
WhiteBIT allows a limited list of functions for users who want to skip registration, for example, you can trade in the spot market or use p2p exchange for quick transactions. In this case, your withdrawals will be limited.
If you want to have all the possible trading options in front of you (futures, margin, leverage, etc.), you should first pass verification. It usually takes a couple of days to check a user. If you are a Ukrainian and have a Diya app, the process of registration and verification takes much less time.
So once you register, you may add your crypto wallet or use a bank card to deposit funds to your new account. Suppose you have dollars and want to invest in SOL crypto. For that purpose, you may use the WhiteBIT converter. It allows to exchange of fiat-crypto pairs quickly and at a real-time price. Pick the fiat currency you want to give and crypto coins you would like to get. Then enter how much money you want to spend. The calculator will display the relevant price for one SOL coin in the equivalent of your currency. Below, you will see the size of the commission to pay. In a couple of clicks, SOL coins will arrive in your account. You may next trade them or hold them long-term. It is also possible to put SOL coins in crypto lending, allowing the exchange to use them for its purposes and give you additional SOL coins in return as a form of reward. WhiteBIT is now working on crypto staking programs which will be presented in a while.
Beginners Guide to Cryptocurrency Trading Tools
WhiteBIT, like any other large platform, offers a variety of trading instruments. One of the most complex is futures trading. It implies the user’s ability to predict the future value of crypto assets. This tool allows traders to earn money on the downward-moving market by opening short positions. That means selling crypto assets and then repurchasing them when their value gets lower. Futures contracts on WhiteBIT are available with X20 leverage, which means you can borrow X20 funds to open a much more profitable position in your trade. However, the higher the leverage ratio, the bigger the risk you take. Novice traders are recommended to use the smallest leverage. The advantage of WhiteBIT is the demo account option. You can try any tool or strategy using demo tokens created for training.
The main component of successful crypto investment is picking a promising asset, a suitable trading strategy, and a reliable platform. Before buying crypto, read the reviews on crypto platforms and find out the best suitable service for you, depending on what tools you like to use. WhiteBIT is a versatile platform offering the most simple and advanced trading instruments and allowing users to configure the interface according to their needs. If you are a beginner user, choose the basic interface, and if you want advanced tools, pick the advanced one.
Buying crypto assets on a regulated platform WhiteBIT is the safest option. The exchange holds 96% of users’ funds on cold wallets, and only 6% are always in circulation. On the WhiteBIT blog, you can find a lot of interesting articles and long reads about the crypto industry. Also, if you need to learn how to trade, you can use WhiteBIT manuals and practice them simultaneously with a demo trading account to polish your trading skills and find out all the gaps in your knowledge.
The platform offers its native crypto – WBT – which you may use to receive discounts on trading fees and access to additional products. Besides, WBT holders receive extra rewards in the affiliate program. Read more about the platform and its investment options on the WhiteBIT blog.