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This article is in no case a financial advice. It is important to do your own research before starting investing.

Investing is a great opportunity to earn more money. You may however wonder how to start investing in Crypto? You should always keep in mind that you should only invest what you can comfortably afford to lose. Before investing, you should also think about the following things:

• In which type of project do you wish to invest
• How much do you wish to invest (at least to begin with)
• For how long you plan on holding your investment
• How frequently do you want to invest (or do transactions)
• What is your goal to achieve

With all that said, investing does take a lot of time as you need to do some research, but you also need to analyse the market and act accordingly. There are different ways of investing, whether you have lots of time to do so or a little less time.

Do some research

As we say a lot in crypto, DYOR! Which means ‘Do your own research’. In fact, doing research plays a big part in the whole thing. You must always be extremely careful on which exchange you trade on, where you connect your wallet to. But also, which coin you add to your wallet as scams can be anywhere. Apart from scams, not paying enough attention and copying just one wrong figure or letter from your wallet address and all your funds are gone. This is why when you invest, you want to make sure to do it in the best conditions. Have some quiet time for yourself, don’t be in a stressful environment or in a rush.

It is also a good idea to keep an eye to your investments, as crypto never sleeps. Tokens are in constant movement some of which are determined because of partnerships, major investors hopping in or out of projects, important events, politics, regulations, the news and so on. You also want to know where you put your money in and where your money goes to (some projects support charities, give back loyalties to their investors which is really interesting and so much more).

Doing research will also allow you to get to know the teams behind the projects you invest in. Lots of projects now display their team’s picture and name for trustworthiness. Thanks to their roadmap (business plan) displayed on their website, you’ll also know which direction the project wants to take. All of these details will help you choose your projects.

Create a wallet account

If you want to start organically and aren’t a 100% comfortable in the crypto space yet, starting with a Centralized (CeFi) wallet may be a good option to start with. There’s a multitude of choice for CeFi wallets, such as Coinbase, Metamask, Kraken, Gemini and others. As you may already know, CeFi wallets work closely with the traditional banking system. Therefore, you will be asked to complete some details such as your full name, email address, home address, phone number, provide a copy of your ID, proof of address etc. Once completed, you will gain access to your wallet, and you will then be able to add some funds to it.

You also have the option to set up a DeFi wallet, such as KuCoin, Metamask, OKX, 1Inch and others. Setting up an account for a DeFi wallet will be much quicker as you will have less details to provide.

Invest via Centralized Exchanges (Cex)

CeFi exchanges have an implemented wallet, thanks to that, you will be able to start investing directly from your CeFi wallet app. On a Cex you will have the possibility to do:

• Swapping (Exchanging a token for another)
• Trading bots (Automated system that will buy and sell your digital assets on your behalf)
• Buy and Sell crypto on ‘Limit’ (Programming your transaction, set a price at which you would like to buy or sell your crypto)
• P2P transactions (Buy and sell crypto to other individuals on the platform via a regulated system)
• And others

Investing through Decentralized Exchanges (Dex)

To invest via a Dex, you will need to set up a DeFi wallet as seen a little further above. Once set up, you will be able to choose a network to do your investments on, here are different examples of networks:

• Ethereum (ETH)
• Solana (SOL)
• Binance Smart Chain (BNB)
• Arbitrum (ARB)
• Fantom (FTM)
• Polkadot (MATIC)
• And others

Depending on the network and exchange that you will choose, you will have variable options for your investments:

• Swapping (Exchanging a token for another)
• Staking (Locking your tokens on a blockchain network to earn rewards)
• Liquidity pools (Depositing two different tokens in a pool to generate passive incomes)
• Yield Farming (Depositing a token in a liquidity pool on a protocol to earn higher returns)
• Lending (Depositing a token on a protocol for other investors to borrow which allows you to generate and earn passive incomes thanks to APR (Annual Percentage Rate))
• Borrowing (Borrowing funds from other investors thanks to a protocol – you will need to place some collateral funds and fees to pay per day)
• And others

Example of Dex

You will have the possibility to access the above options on Dex such as: (In brackets are the networks in which they are available)

• Pancakeswap (Binance Smart Chain, Ethereum, Polygon, zkSynk, Base and others)
• Curve (Arbitrum, Aurora, Avalanche, Base, Ethereum, Fantom, Polygon and others)
• Uniswap (Ethereum, Arbitrum, Optimism, Polygon, Base, Avalanche and others)
• Sushiswap (Aptos, Ethereum, Base, Polygon, Filecoin, Fantom and others)
• Tomb Finance (Fantom ecosystem only)
• And others

You now have an idea of how and where to start to look at for your first investments. Please do keep in mind that this piece is in no case a financial advice but solely for educative and informative purposes. Crypto is an ever-growing industry, so it is important to keep up with the latest updates.