Despite the continuing battle temporarily paralyzing the crypto sector, 2022 has been a fantastic year for cryptocurrencies.

This year, along with classic cryptocurrencies such as Ethereum and Bitcoin, has seen a surge of meme coins and altcoins.

Purchasing bitcoin has never been more uncomplicated. You sign up for an exchange, press "purchase," and you're a legitimate crypto investor.

But investing entails more than simply purchasing your preferred coin.

As an inexperienced investor, you've definitely got many questions regarding cryptocurrency, such as what you should know before investing, acquiring it, and keeping (and safeguarding) your money correctly.

This blog will discuss everything you need to know as a novice cryptocurrency investor in 2022.

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What Is The Easiest And Safest Way To Buy Cryptocurrency

Cryptocurrency for beginners is not hard if you get the proper guidance. The first way to go about it is learning how to purchase cryptocurrency safely, and that entails three key steps:

  1. Determine Where You Will Buy It

There are several secure methods to purchase bitcoin, but the most accessible alternative for newcomers is likely to be a centralized exchange.

These exchanges often trade cryptocurrency at market rates and profit from fees for different parts of their services. Find the best exchange of 2022 for the purchase of crypto.

  1. Choose Your Payment Method

While dozens of cryptocurrencies are traded globally, the most prevalent alternatives are generally purchasable using fiat currencies like the U.S. dollar.

If you are a first-timer, you will almost certainly have to spend ordinary money to purchase cryptocurrencies.

If you're a more seasoned investor, you can consider exchanging part of your current crypto assets for yet another sort of cryptocurrency, such as Bitcoin for Ethereum.

Keep in mind that exchange costs differ based on what you're purchasing and how you're purchasing it, so pay close attention to these factors.

  1. Choose A Cryptocurrency

When you buy, consider your objectives for this purchase. Do you expect it to appreciate in value? Will this cryptocurrency blow up eventually? Do you want to conduct transactions with cryptocurrency?

Bitcoin investors have several possibilities, but none are generally suitable for all. These may assist you in making your decision:

  • The first and most valued cryptocurrency is Bitcoin
  • Stablecoins are a type of cryptocurrency whose value is intended to be steady in comparison to real-world assets such as the U.S. dollar
  • Litecoin is a Bitcoin fork designed to make payments simpler
  • Dogecoin started as a joke but has now evolved to become one of the most expensive cryptocurrencies
  • Ethereum is widely used to carry out more complicated financial transactions than Bitcoin
  • Cardano is a rival to Ethereum that is headed by one of its co-founders
  • Solana is yet another Ethereum rival that focuses on efficiency and expense
Bitcoin, Ethereum, Dash coin, and motherboard
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What Is The Most Profitable Crypto To Invest In?

The appeal of cryptocurrency continues to grow, with more 'everyday investors' – many of whom are total beginners – reaping the benefits and reaping the profits.

Although Bitcoin may have announced the beginning of disruptive, decentralized finance in 2009, dozens of other cryptocurrencies have emerged since then.

Each has its own price, availability, demand, transaction speed, fees, and underlying technology.

We realize that wading through complicated language might be daunting; we also acknowledge that we cannot advise our consumers on which cryptocurrency to invest in.

However, we can keep things as easy as possible by selecting the finest cryptocurrencies based on market capitalization (the combined value including all coins currently in circulation) and their long-term growth potential.

Here's a quick rundown of a few cryptocurrencies that are currently popular among our new and casual investors:

Bitcoin (BTC)

Bitcoin, the first and most well-known cryptocurrency, is now a leading name (and market cap leader) since Satoshi Nakamoto launched it anonymously in 2009.Although Bitcoin is undoubtedly the most accessible cryptocurrency and the one with the most liquidity, it is notoriously volatile, which might deter new investors.

Bitcoin is founded on a blockchain, also known as a distributed ledger, which registers transactions over a network of multiple computers.

Contributions to ledgers need to be validated by completing a cryptographic challenge called the 'proof of work' process, ensuring that bitcoin remains secure and safe.

Bitcoin Cash (BCH) (BCH)

Bitcoin Cash was developed in 2017 due to a bitcoin 'fork' by engineers looking to increase its efficiency and scalability.

Its larger block size allows transactions to be completed faster on the network (61 transactions per second compared to bitcoin's average of 7 per second), resulting in substantially cheaper transaction fees for customers.

Bitcoin Cash is more scalable than bitcoin, which means that more users can conduct transactions and payments simultaneously. The transaction expenses are also significantly cheaper.

On the other hand, Bitcoin Cash suffers from being in bitcoin's shadow. It has lesser liquidity, value, and adoption rates than its elder crypto sister.

Ethereum (ETH)

Ethereum, the second-biggest cryptocurrency by market value, has expanded exponentially since its debut in 2015.Ethereum's objective is to establish a global internet where anybody can build apps safely and anonymously.

It is best known for creating smart contracts and boasting transaction rates quicker than Bitcoin. Several worldwide corporations back Ethereum, and a significant upgrade is now ongoing.

Ethereum has a fast network and widespread backing from powerful software and banking businesses.

Nevertheless, it is recognized for its forking problems, which may occur when there are differences over how it should be utilized. This can lead to insecurity, which deters some investors.

Cardano's (ADA)

Cardano, which builds on the technology pioneered by Bitcoin and Ethereum, has been dubbed "third-generation crypto" by some.It is rooted in academia and combines a scientific and mathematical approach to transaction verification.

Removing the problem-solving, competitive aspect of transaction authentication found in crypto platforms like Bitcoin provides a high level of security, speeds up transaction time, and reduces environmental impact and energy usage.

Cardano is regarded as one of the most ecologically friendly cryptocurrencies, with a solid team behind it. However, it is still in its early stages, and while it has some noble goals, the work scope is quite ambitious.

Litecoin (LTC)

Litecoin was introduced in 2011 as a speedier and more efficient counterpart of Bitcoin, thus the term "lite" – or, in the designer's words, "the silver to Bitcoin's gold."

It, like Bitcoin, has a 'proof of work' consensus process and has a coin limit (Bitcoin's is 21 million coins, while Litecoin's is 84 million), which means that if the cryptocurrencies hit their maximum, no more currency will be issued into the system.

Litecoin, as one of the market's earliest cryptos, has a lengthy history of ranking among the top 10 cryptocurrencies. It is well-known for its minimal transaction costs and fast processing rates.

Litecoin has a few branding concerns (not least grammar software indicating it is a mistake for bitcoin), and it has lost a lot of trust since its inventor sold his interests in 2017.

You can learn more about cryptocurrency and how to trade at Superprof. Our crypto experts teach you about this subject.

CryptocurrencyPrice and market capitalization over the previous quarter
Bitcoin$50,667.65 - $38,059.90
$954.31 billion - $735.15 billion
Bitcoin Cash$474.90 - $274.91
$9.09 billion - $5.40 billion
Ethereum$2,497.72 - $4,311.67
$526.77 billion - $308.90 billion
Cardano$0.80 - $1.29
$40.5 billion - $28.5 billion
Litecoin$151.75, minus $100.62
$10.27 billion - $7.46 billion
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How Do You Start Investing In Cryptocurrency As A Beginner?

There are several things to know before investing in cryptocurrency. However, the three most important things you should know are:

  1. Cryptocurrency Is Indeed A Turbulent, High-Risk Purchase

Cryptocurrencies are highly volatile. Bitcoin is an excellent example since it is not unusual for it to lose 30% one day and then explode to new highs the very next week.

Bitcoin may be performing very well compared to when it initially gained popularity, but the gains are neither consistent nor assured.

Anyone who acquired BTCUSD in late 2017 and sold it before October 2020 lost money.

If you decide to invest in cryptocurrency, we recommend starting with a modest amount of your portfolio.

  1. Cryptocurrency Is Taxable

Gains from cryptocurrency are taxed. In 2014, the IRS chose to begin taxing crypto earnings as capital gains, and since then, it has given at least 24,000 notices to the cryptocurrency world.

  1. The FDIC Does Not Insure Cryptocurrency Holdings

Your savings and checking accounts will be covered for up to $250,000 if your bank fails. However, you're out of luck if your crypto exchange goes bankrupt, is hacked, or just shutters down without warning.

A group of gold cryptocurrency coins on top of black stones
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How To Keep Cryptocurrency Secure

When it comes to digital wallets, you can check out several different options:

Noncustodial wallets: Due to the danger of hacking, leaving enormous amounts on crypto exchanges for way too long than required might be problematic.

If you're ready to start keeping your cryptocurrency, several choices are available. They are classified into two types: hot wallets and cold wallets.

Hot wallets include some online connectivity, making them more convenient to use but may subject you to certain security risks.

Cold wallets are offline, physical devices are inaccessible to anyone who does not have them on themselves.

On-platform storage: Some users choose to retain their bitcoin on the platform from where it was obtained. This has several benefits.

It delegated the complexity to a third party with relevant experience. You don't need to keep care of your private keys; everything is available when you log in.

The disadvantage is that if the provider suffers a security breach that you could not have prevented or if someone compromises your particular credentials, your bitcoin may be jeopardized.

People who anticipate they might wish to trade their crypto soon or who want to partake in exchanges' staking and rewards programs frequently employ on-platform storage.

How A Beginner Can Benefit From Cryptocurrency Courses Taught By Superprof's Experts

You should think about investing in cryptocurrency if:

  • You want to diversify your portfolio with very high-risk investments: If you've already determined your risk tolerance and are actively seeking to diversify your portfolio, crypto fits the bill
  • You trust in crypto's and blockchain's mission: Perhaps you believe in the good qualities of cryptocurrency and blockchain technology and see it as a type of ESG investing

Moreover, let nothing stop you from investing. Get your crypto training from our expert tutors at Superprof.

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