Updated: Jan 20
Before We start this topic, you need to be aware that cryptocurrencies are high risk investments. New investors need to do a lot of research before investing into cryptocurrencies.
Cryptocurrencies are highly volatile and prices fluctuates based on speculation. It's difficult to find out what price is the best price to buy as it doesn't have any transparency.
Now lets find out how to get started.
1. Sign Up with a reputed Cryptocurrency Exchange.
The best Crypto exchange in Australia is Coin Spot in my opinion only. Please check Which one is the best one in your own country. Binance is the good one in USA if I am not wrong. It's better to sign up with the exchange which has a good reputation and good long stable history. Once you sign up you will have to transfer funds into your Crypto exchange account.
2. Choosing a right cryptocurrency.
I would highly recommend you to buy cryptocurrencies only from top 5 or top 3, specially newbies should buy the best ones only. There are thousands of cryptocurrencies listed and make sure you do not buy the bad ones. I believe currently 99.90% Crypto currencies are bad investments. I would suggest you to invest in Bitcoin, Ethereum, XRP, Litecoin(Maybe). The easiest way to find out which coin is good by checking long term 24 hour volume. So if the coin has lower than $100 million worth of 24hr volume then I wouldn't invest in it, also the good 24hrs volume has to be constant for years not just for days or weeks. If you get confused then go for those top 3 or top 5. This is not a financial advice.
3. Choosing the right price to buy.
Finding the best price to buy Cryptocurrencies is very difficult as Cryptocurrency doesn't have transparency. As an example If you buy a good stock it should have a good transparency, which means total amount of assets, cash on hand, income or earnings, revenue, debt and you can compare them with the market cap to get an idea of a fair value of that particular stock. I was finding good price by analyzing Chart, however it is still speculation and gambling. I bought bitcoins when price went down to about $4k-$5k USD after crashing from $20k USD and sold them when the price went up to $12k USD. If you remember Bitcoin went to $20k USD and then crashed later, so you need to remember that kind of events when choosing the price of cryptocurrency. Right now Bitcoin price is rising so this may be a bad time to to buy, in my opinion only and not a financial advice.
4. Buying and storing your cryptocurrencies.
Once you buy cryptocurrency from the exchange, never ever keep your cryptocurrencies in the exchange account. Unfortunately there are too many dishonest people in cryptocurrency sector. In the past many exchanges claimed that their exchanges got hacked and account holders lost their money, so as soon as you receive your coins, transfer them straight away into your blockchain mobile or desktop wallet. Before transferring your coins to a bitcoin address make sure you save the private key of that address in somewhere secure place like on few printed papers, take screen shots or store somewhere where you can't lose them and no one can find them.
Also before transferring a huge amount first try sending the small amount like $1-$5, once you confirm that you have received them into your mobile or desktop wallet then transfer the rest into your wallet, if the amount is big then try keeping them into 3-4 different addresses. Normally when you create a blockchain wallet you receive "seeds" which is a combination of 12 random words, you also need to secure them in somewhere safe, in case if you lose your phone or computer then you can recover back your coins through that 12 words seeds.
NOTE: This is not a financial advice. Please take your own advice on your investment decisions.
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