Binance
With all the craze about cryptocurrency, it is hard to ignore the new investment hype. Binance is quickly becoming one of the most popular Cryptocurrency trading platforms. Digital assets are making inroads to shake up investment circles in 2021. The rise of Dogecoin (DOGE) and Ethereum (ETH) has enticed new investors to enter the cryptocurrency market.
I have wanted to enter the crypto market since 2017. The main driver is the potential of a future digital currency boom. However, I have been very hesitant to invest due to my lack of knowledge in the digital currency sector. The advice given by many experienced traders is to avoid investing in something you do not fully understand. Therefore, I decided to do some research about investing in Cryptocurrency in a safe and secure manner. This article will detail my introduction to cryptocurrency. Furthermore, I will share the knowledge gained from investing in a digital future.
1. Sign up with the Binance Trading Platform
I have since invested with Binance as is it a widely popular and secure trading platform. Moreover, Binance offers many different cryptocurrency options within Australia. After seamlessly transferring and depositing funds between accounts I instantly felt more secure with Binance. In contrast, Swyftx notified me that I had not met the minimum deposit amount when transferring across funds. Given Swyftx’s transfer limitations and clunky user interface, I decided to pursue Binance as my Cryptocurrency trading platform. I have summarised the pros and cons investing in Binance below:
Pros
- Trade over 180 cryptocurrencies including Binance futures
- Instant Aud deposit via PayID
- Zero Fee deposit via PayID/Osko
- Compatible with multiple devices
- Lowest trading fees
- 24/7 multi-platform customer service
- Binance Launchpad and Decentralised finance features
Cons
- Cannot deposit funds via traditional methods debit/credit card, Paypal
- Learning curve for new users to invest in different options
- Lack of phone/direct customer support
Set up Binance Identity Verification
Once I had set up my account I went through the verification process. A relatively easy and secure method to check my identity. I am glad an identity check is the first step when creating a profile. This should be a requirement when opening any new account that transfers funds between bank accounts. Once I had my identity verified I decided on the specific digital currencies to invest in. The search function in Binance easily allowed me to view the top most popular Cryptocurrencies. From there I could research and compare the digital assets within the market place.
Timing the bottom of the market is not a strategy that I have pursued. Particularly given the recent rises in price over the previous months. I did however decide to split my initial investment between two digital coins Ethereum (ETH) and Ripple (XRP). I chose these coins as I had been wanting to invest in long-term digital assets. Ripple was chosen given the speed at which users can transact transferring funds internationally. Ethereum (ETH) was selected as an alternative to Bitcoin. Although not the market leader it may offer some growth potential over the coming years. There is a real risk that these coins could lose the majority of their value. However, this is also an inherent risk carried when investing no matter the platform. Therefore, I decided to only invest a small amount in each coin. This would enable me to diversify the downside risk of the digital investment.
Investing in the Digital Currencies
Given the new age of investing, I was quietly hoping the process to invest would be relatively quick and easy. To my surprise, it was exactly that! For instance, an almost instantaneous transfer of funds was done through the Pay ID. The Pay ID allowed me to deposit my AUD funds straight from my bank account into the Binance account at no cost. From there, I navigated to the Buy Crypto drop-down menu and searched for Ethereum (ETH). A list of digital currencies appeared with options to purchase the coins. After inputting the amount I wanted to spend in AUD the transaction was confirmed. Once complete, Ethereum was my first Cryptocurrency purchase! I repeated the same method to acquire a portion of Ripple (XRP) cryptocurrency. Now I had successfully acquired two different classes of cryptocurrency within my digital wallet linked to my Binance account.
Cryptocurrency as a future investment
I am excited that I have made my first purchase in Cryptocurrency. High volatility and risk are involved with this type of investment. However, in my opinion, I believe investors should be open and willing to try to seek out new investments if it aligns with their investing strategy. Given the recent performance of growth tech shares, I have been prompted to look at other markets for growth. This has led me to ultimately make a purchase in cryptocurrency.
The small amount invested shows that I am not rushing out to invest 100% of my savings in Cryptocurrency. I have been cautious with the process of investing in Cryptocurrency. However, I am glad to finally be joining the tens of thousands of investors taking up new investments in 2021. I will still be using the same approach to buy and hold long-term growth assets. If you too want to enter the world of Cryptocurrency I have included a referral link to sign up with Binance here. For disclosure, I would receive a small commission if you choose to sign-up with this link. With any investment, make sure you do your research before making an investment decision. For more information about Cryptocurrency, I have included a link to my blog on How to Invest in the Best Cryptocurrency in 2021.
