Since the first cryptocurrency was created in 2009, cryptocurrencies have evolved into one of the most talked about asset classes. This is because of its speculative and intrinsic value. The industry has since moved from the peer-to-peer that doesn't require a third party like the banks to use to a more sophisticated asset hub packed with different use cases ranging from AI, banking and finance, virtual reality etc. For this reason, Cryptocurrencies have since qualified as digital-based assets that are worth investing in.
Investing in cryptocurrencies comes with its own risks because they are incredibly volatile and the industry possesses a great number of bad actors, but if you want to trade this asset class, this volatility can present opportunities for profit.
Before we guide you on how to buy your first crypto, here are some tips on how to get started investing in cryptocurrencies as well as some major risks to be aware of.
Understand What You are Investing in
It is important that you know exactly what you're investing in since you are investing your hard-earned money. Do extensive research on any cryptocurrency you intend to invest in, as there are literally thousands of them, each of which operates differently, and more are being produced daily.
Many cryptocurrencies have no backing whatsoever, neither in terms of physical assets nor monetary flow. Investment in crypto without a use case as an investor, you will solely rely on someone else paying more for the coin than you did. In other words, many crypto assets depend on the market turning more positive and bullish for you to earn.
Manage your risk.
Risk management is important when trading any asset on a short-term basis, but it can be particularly important when dealing with volatile assets like cryptocurrencies. Therefore, as a more inexperienced trader, you'll need to comprehend the best ways to manage risk and create a procedure that aids in loss mitigation. Additionally, the method can differ from person to person:
The simplest form of risk management for a long-term investor may be to never sell, regardless of price. The investor can maintain the position thanks to their long-term outlook.
However, a short-term trader may control risk by establishing rigorous guidelines for when to sell, such as after a 10% decline in investment. The trader then sticks to the rules properly such that it becomes a norm for him/her
Risk management is crucial, but doing so will cost you emotionally. Although selling a losing position hurts, doing so can prevent further losses that are more severe. This is why it is important to have a solid risk management system in place before embarking on your crypto trading journey.
Always keep in mind that the past is the past.
Many novice traders make the mistake of projecting previous results to the future. Yes, Bitcoin was once worth pennies, but it now has a considerably higher value. However, the important thing is, "Will that growth continue, even if it's not at quite that spectacular rate, into the future?"
Investors don't consider an asset's past performance; they instead focus on the future. What will drive upcoming returns? Investors in cryptocurrencies now require future gains, not those from yesterday.
Don't fall into the trap of believing that the price of Bitcoin, Ethereum, or XRP would increase by 50–100 times as much as it did during the last cycle. Assets get harder and harder to push as more and more money enters the market.
Don’t invest more than you can afford to lose
Finally, it’s important to avoid putting the money that you need into speculative assets. If you can’t afford to lose it – all of it – you can’t afford to put it into risky assets such as cryptocurrency, or other speculative assets, for that matter.
The most important part of this is the word “afford”. This has nothing to do with the amount of money you invest, but is actually about “impact”. What would be the impact on you, if your investment were to lose value?
Every investment you make comes with the possibility of not providing you with the returns you expect. The higher the returns you expect, the more risk you generally take to get those returns. While taking less risk lowers your returns, it increases your chance of continuing to trade for a long time as long as you have a strong trading strategy.
How to Buy Cryptocurrency from VIBRA
Buying cryptocurrency is not much of a great task as we have made our platform easy for both seasoned professionals and newbies. Here's how you can easily buy crypto on VIBRA if you are a newbie:
Step 1: Create a VIBRA Account.
To buy or own Bitcoin and any other cryptocurrency you need a VIBRA account.
Download the VIBRA app here for Android devices and here for iPhone users and sign up within 2 minutes!
Step 2: Use Your Local Currency to Buy USDT on VIBRA P2P.
Once your sign-up process is completed, log in to the VIBRA app. Follow the steps below;
We are using Ghana Cedis to illustrate the process
Click the P2P icon on the home page. Ensure your preferred currency on VIBRA is your local currency (you can change it from the dropdown on the right).
Step 3: Buy From Your Preferred Merchant
On the P2P platform, there is a list of merchants who are ready to trade crypto for your Fiat at any time. (P.S. All merchants on VIBRA are well scrutinized and verified)
Choose the ad that meets your required quantity(limit) and exchange rate(price).
Click the "BUY" button.
Fill in the amount you want to pay or the quantity of USDT you want to purchase.
Click “BUY NOW” to initiate the process.
Step 4: Buy Your Crypto Swiftly And Securely
The merchant's information will appear, including preferred payment method, e.g. MOMO, bank transfer, etc.
Read the merchant's terms and conditions and copy the payment details.
You are required to make payment and confirm within the seller's stipulated time.
Step 5: Pay The Merchant
Now go to your MOMO, bank account or Mpesa (depending on the seller's preferred payment method). Send the exact payment to the account number the merchant has provided.
Please ensure you are paying to the correct account by making sure the account name provided by the merchant matches the one shown.
Step 6: Confirm Successful Payment
Return to the VIBRA App and click “I HAVE PAID”. This will notify the seller that you have transferred the money to the specified account.
The seller will verify your payment and confirm on the VIBRA app.
You will receive your cryptocurrency instantly in your VIBRA account once the merchant confirms that your payment was successful.
Note: A merchant cannot hold on to the cryptocurrency after payment is confirmed because it is held in escrow by VIBRA.
Step 7: Trade USDT to Bitcoin
Go to the Trade tab on VIBRA and exchange your USDT for BTC instantly.
Congratulations! You just bought Bitcoin.
With VIBRA, You Are In Charge!