Cryptocurrency isn’t something new or even a flash in the pan anymore; however, getting your head around can still be complex. For investors with a high-risk tolerance, if you haven’t already made the jump, adding crypto to your portfolio can be a risk worth taking.

But what if you know little or next to nothing about crypto trading and what it means, never mind how to avoid common crypto scams and mistakes?

There is indubitably a steep learning curve when it comes to investing in crypto, and these can help you get started.

Find a Reputable Exchange

You can’t just buy crypto like you would buy stocks or real estate. You need to be able to find an exchange through which to purchase your currency. There will be different factors to consider when choosing your exchange, like fees, minimum investment amounts, trading volumes, etc, so doing your homework and thoroughly researching before parting with money is vital. The top exchanges you can look at include Gemini and Coinbase.

However, suppose you choose more than one exchange, more than one currency, or want to use your investments to make purchases down the line? In that case, you need a Crypto Management Platform to help you keep track of your investments and know precisely what is going on in one place.

Storage

Crypto storage and wallets are places where your digital currency is kept safe. It’s not always like a bank, where you can see your investments grow under the bank’s supervision. You need to have a place to store your currency so it’s safe and accessible.

While many new investors prefer to keep their crypto investments on the platform they’re investing in, a reputable platform will have robust security measures to protect your investments; you can look at storing your investments in a wallet, specifically a hot or cold wallet. A hot wallet is a wallet held on the internet you can access a bit, like your cloud storage for photos, while a cold wallet is a physical option for storing your investments, like a USB drive.

Investment Budget

It’s important to remember that you don’t need to allocate a massive chunk of your portfolio to crypto; experts suggest around 2% is plenty. But you do need to set limits on how much you will spend and when. This can help you avoid losing vast sums of money if things go wrong. Initially, you want to start with a sum smaller than you’re comfortable with until you get a feel for how things work. Then, you can increase your maximum budget.

Decide on your Currency

While there’s no harm in investing in multiple types of cryptocurrency once you’re more experienced, you should choose just one type to invest in until you become familiar with how things work.

There are currently over 13,000 cryptocurrencies you can invest in; however, only around 9,000 are active, which is still a lot of choice. The most common are Bitcoin, Ethereum, and Tether USDt. Pick one, stick with it until you become more confident, and then branch out if you wish.