Hong Kong’s Crypto Regulation Framework: How Hong Kong is Regulating
How to invest in Cryptocurrency in 2023?
It is said the best time to invest was 10 years ago, the next best time is today! With 2022 coming to a close and 2023 on the horizon, there is hope for new possibilities, ventures, and opportunities.
With investment opportunities arising in cryptocurrency, we will try to figure out what are the optimum ways to invest in crypto.
In the following article, we will learn about why, how, and from where to buy cryptocurrencies in the coming year.
Why invest in Cryptocurrency?
Before knowing how, it’s crucial to know the whys. This past year, with recovery from a pandemic, the world in recession, and the market in a bearish nature, almost all cryptocurrencies have seen a dip in their graph.
Last year has been great for crypto in terms of its growing popularity and education amongst the public but the overall trend hasn’t been in favor with tokens falling in value.
Then why even consider buying cryptocurrency?
For the base reason; the market never stays the same, it always changes. Volatility is one of the key features of all investment sectors be it stocks, real estate, and even crypto. If the smart and right decisions are made, the same volatility can be used to your advantage.
Projection and price prediction of leading cryptocurrencies show a steady growth rate and even growth “leaps” in several cases.
Say, for example: Ethereum Price Prediction for 2030 suggest it could reach 9334USD.
Cryptocurrencies are bound to make a comeback in the coming years and by the end of 2023, all major cryptos show growth in their price predictions. Cryptocurrency is the future and the world is realizing its capabilities and possibilities, and the trend is only going to move further ahead.
Cryptocurrency is an ecosystem that relies on demand and supply, and the growing number of investors will provide a further boost to it. So, for any investor out there who is prepared to take a ride on the roller coaster of volatility; growth and returns are boded.
Before Buying any CRYPTO, what should you know?
Once you have made up your mind to enter into the arena of crypto investments, the next dilemma is to decide which cryptocurrenciess to buy.
Now of course if you are an experienced or intermediate-level investor or trader, you know all the tricks; but for beginners, here are some tips-
Crypto is a demand and supply industry that is highly dependent on its market capitalization. Market capitalization for cryptos is the total valuation of all its available cryptocurrencies. So, if the crypto has a higher market cap it ensures more stability to its prices. But more stability doesn’t always assure high returns, but stable returns, yes.
While the changing market can affect practically any crypto, tokens with high market cap and resultant popularity end up performing comparatively better and also become at times the determinants of the trend of the whole market. E.g., the way Bitcoin and Ethereum have become crypto giants and they are often looked up to as indicators for the entire market.
You can find any crypto’s market cap on any exchange platform or app they are listed on or through a simple google search. However, there are two sites I like the most: Coinmarketcap.com and Coingecko.com
Also, you should look into marketcap before buying any coin, and not its price. Market cap will give you a fair idea whether the token is costly or cheap.
Many a times, new investors think DOGE at $0.074 is cheaper than LTC at $65. However, it we look at their marketcap, we will see, Doge has a higher marketcap, and hence more costly than Litecoin.
Unlike stocks, where you could read Annual statements, you do not have that option with cryptocurrencies. Here, all companies involved in cryptocurrencies issue a whitepaper in which they lay out their plans, goals, targets, tie-ups, and any particular information they want to put forth for their investors and even for the general public knowledge.
Now the important matter at hand is to go through a crypto organization’s whitepaper and understand how certain elements stated will affect the organization and resultantly the crypto’s future price.
To break it down to an easier concept, the more a crypto organization meets its said goals and the more it diversifies and establishes itself as a stable token, the investor and public confidence also rises. The whitepaper can be accessed through the official website of the crypto.
Instead of blindly investing in any cryptocurrency, without knowing anything about the project can lead to wrong investment. Although whitepaper can be technical at times, but it is your best source to learn about the project in depth and decide if the idea worth investing.
Most of the cryptocurrency prices from what I have seen move in 4 year cycle. Hence, it is important to study the price history of cryptocurrencies in detail before investing. Remember, I am not talking about shitcoins!
It’s necessary to know and remember that a flourishing price history or dip does not indicate, assure or contradict the future price possibility.
While it can be referred to note how crypto reacted to certain external factors, that again must be approached with caution, logic and if possible; experience.
For example, if we look at Bitcoin’s past price history, we can see BTC price was highest in last quarter of 2013, 2017 and again in 2021. So, with this data we can say, you should refrain from investing during November-December 2025.
Price predictions for cryptocurrency can be accessed from various sources, hence, the first approach should be to ensure that the source itself is a valid one to predict future prices for cryptocurrency.
For that, you can surf through their old price predictions or research their prediction methods or algorithm to ensure maximum accuracy.
But again, the prediction must also be approached with a certain caution in a volatile market.
Figure out the fad
Often it’s seen that certain cryptos become popular extremely fast on and through social media fads and initially bank in 1000%s of hike in their price, but as the fad burns out the tokens crash hard and rarely recover. There might be exceptions like Dogecoin but it’s better to avoid falling for such temporary trends and exhausting your funds.
Keep in mind the following pointer before finalizing to buy crypto, other than those, buying established crypto is always a better idea for the sake of stability and consistent growth. Make sure you diversify your portfolio and assess the token with a sense of practicality.
Factors to help you choose the right Crypto Exchange Platform
Today there are over 4000 cryptocurrency options to buy from, and all of their trade through exchange platforms. These exchange platforms act as brokers who connect you to the crypto token you wish to buy.
Here are a few points to consider while deciding what crypto exchange platform to use;
Proof of Reserve
Just like banks, even crypto companies use their investors’ money to further invest, trade in, and diversify their interests. In such a scenario, though it doesn’t affect small withdrawals when the withdrawal amounts are huge or there’s a huge number of individuals withdrawing their investments; the company falls short on liquidating funds. Thus the investors’ funds get blocked up.
And in some cases, you may end up losing your crypto assets, as the crypto exchange may block you from withdrawing, and may also file for bankruptcy. We all saw how Celsius, FTX, Voyager, Blockfi all shut their withdrawals and the investors lost their deposits.
To avoid such a situation make sure the crypto you are going to buy is handled by a company that transparently states its Proof of Reserve.
Trading, Deposit and Withdrawal charge
Usually all crypto exchange platforms or applications charge a withdrawal charge when you take out your invested amount or tokens from their platform. Look for platforms where withdrawal charges are very less or nil. Crypto deposit charges should be nil. Also, some platforms do not charge any trading fee as well.
Maker and taker charges
These are the charges that will be applied when you buy any cryptocurrency from these exchanges.
Sometimes exchange platforms do not show or specify their charges but levy hidden charges from the users, so make sure you check if there are any unspecified, hidden charges.
There are allegations of hidden charges made by a lot of investors against Coinswitch.
Interface and ease of use
The user interface of the platform or the application is an important and vital necessity. Ease of use of the platform will help you in avoiding any future struggles or confusion with your investing journey.
Top exchange platforms to buy your cryptocurrencies from in 2023
Virtually accepted as one of, if not, the best crypto exchange platforms and applications to function today. Binance offers a streamlined and easy-to-use trading experience.
Operation from 2017, Binance today is extremely popular and trusted among investors. Binance has faced multiple attacks by hackers but it has always been successful to return investor funds and provide their proof of reserve.
Read: Binance FUD: Should you worry?
KuCoin is another leading exchange platform with more than 700 crypto tokens up for trading on their platform.
With a valuation of 10 billion dollars, KuCoin is growing in popularity and stability. They also have faced a couple of attacks by hackers but have been able to establish a proof of reserve.
Read: Kucoin Review
Coinbase interface prioritizes user security, by blocking out suspicious accounts. It was founded in 2012 to ensure that people from across the globe could trade in bitcoin and today has grown into one of the leading exchange platforms. Coinbase is one of the mostly used cryptocurrency exchanges in the US.
CoinDCX, India’s most valued crypto institution, is one of the platforms that let you buy or sell crypto in rupees. CoinDCX charges 0.1% of your total transaction amount on almost all the transactions you make, as a trading fee.
Read CoinDCX Review
Another exchange platform that lets you trade in rupees is WazirX. It prioritizes its user safety and security features. Even though WazirX does not allow the withdrawal of funds from their platform, it is still possible to transfer to international exchanges and storage and wallets.
Read WazirX review
Kraken was one of the first crypto exchanges to have been listed on the Bloomberg terminal. You can buy from Kraken all major first-world countries’ currencies, including Euro, Dollars, Yen, and so on.
Read Kraken review
Bittrex claims to be the world’s most secured and regulated digital assets exchange that made its entry into the market in 2014. Bittrex, founded by three cyber security engineers, have managed to make user security and safety their USP.
So that was some of the best exchange platform options that you can go on and start trading or investing on. Make sure to read the necessary terms and conditions before you start trading and choose a platform and coin that suits you and your goals.