Since I’ve been dealing with cryptocurrencies since 2013 and since in this blog I write about how to make money online and crypto, I thought why not write an article on how to invest in cryptocurrencies safely in 2022.
Photo by Andre Taissin on Unsplash
This guide is a “newbies” guide, so if you are kind of a veteran in the space, you will not find much value in it.
So, let’s begin.
How to invest in cryptocurrencies safely in 2022
The cryptocurrency space (at the moment at least) is like the wild west. If you’re in the wrong place at the wrong time, you’re screwed.
Promises that you’ll get filthy rich overnight, messages from strangers wanting to help you, software living on your computer waiting for the right moment to activate and steal your wallet passwords…
You are lucky if you don’t get shot (as they say in the wild west)…
But cryptocurrencies are here to stay and have their place in the “new economy” they [people behind the curtains] are preparing for us.
That’s why it’s good to know how to invest in cryptocurrencies safely and not “cry” afterwards.
This article is divided into two parts:
Α) To those who do NOT have cryptocurrencies and want to buy/invest safely.
Β) To those who DO have cryptocurrencies and want to invest them safely.
If you are one of those who HAVE cryptocurrencies, you can “skip” the first part.
Wallets
The first thing you’ll need is a wallet. There are a lot of wallets out there. But which one should you choose?
Before I suggest which one to choose, you need to understand the difference between a custodian and a non-custodian wallet.
custodian = guardian.
So: There are wallets where you are the custodian of your cryptocurrency, and there are wallets where you are NOT the custodian of your cryptocurrency.
For example, if you have your cryptocurrencies in, say, Binance (which is the most known) or any other exchange, then you are NOT the guardian of your cryptocurrencies.
The guardian is Binance.
It’s like banks today. It’s your money, but the guardian is the bank. The bank takes care of it. The bank is responsible for its safety. The bank repels hackers and threats.
In wallets like Exodus or Metamask — you are the guardian. That is, you are solely responsible for the safekeeping and protection of your money.
No one else.
If you lose your passwords or forget them, you’re screwed. If you do something stupid and they get stolen, no one can help you.
By now, you’re probably thinking: “Why don’t I put them in an exchange that’s safe and secure and have peace of mind?”
Good thinking but… Remember what happened in Cyprus in 2013? The banks and government took the money out of the people’s bank accounts at will to bailout their shit.
The same thing happened in many cases in the cryptocurrency world where unsuspecting crypto holders had their cryptos “sitting” in “non-custodian wallets” and were getting their dividends.
But one day, they get an email telling them that they can’t withdraw their money because the company that provided them with the wallet went bankrupt or simply ran away with it.
Case in point, QuadrigaCX — Canada’s largest exchange, which simply took all users’ cryptocurrency and ran away.
Also the recent example of Celsius, Vault, and Hodlnaut who went bankrupt and were forced to cease crypto analytics.
The email I had received from Hodlnaut which tells me that I cannot withdraw my cryptocurrency. Fortunately, I didn’t have any cryptocurrencies with them at that time.
Not to mention that custodian wallets can freeze your assets at any time just because you are from a certain country.
Like they did to the Russians… If you were a Russian citizen, they would freeze your cryptocurrency… So did Binance (not to all Russian accounts) and a bunch of other smaller exchanges.
Trudeau in Canada who asked custodian wallet companies to confiscate/freeze the cryptocurrencies of the truckers who were protesting.
So, if the government fu**s you up and you want to protest about it, then… It can easily grab your crypto or freeze your account.
So, what wallets should you have?
The answer is that you should have a non-custodian wallet (you will be the custodian) where you will have the bulk of your cryptocurrency and an account (and subsequent wallet) in an exchange (e.g. Binance, Kucoin, etc.) where you will trade, sell and buy.
For secure (non-custodian) wallets, I recommend using Exodus and/or Metamask and for an exchange, use Binance.
Exodus
Exodus is very user-friendly and supports many cryptocurrencies, including the well-known Bitcoin, Ethereum, Cardano, Polkadot, USDT, ATOM, and about 200 or so others.
Screenshot from the Exodus Wallet website
Also, some of them let you do staking and grow your cryptocurrency passively without leaving your wallet.
It’s available for PC and in-app and is one of the first cryptocurrency wallets to be created.
Exodus lets you buy cryptocurrencies directly from your wallet. This makes the investment process much easier as you don’t have to buy cryptocurrencies from an exchange and then send them to your wallet.
Personally, I have been using it since 2013, and although I have tried other wallets from time to time, this one is the best.
Metamask
Metamask is a wallet that “lives” in your browser — i.e. Google Chrome, Firefox, Brave, or any other web browser you use to surf the internet.
Screenshot from the Metamask website.
It is very simple to use, very popular, and very safe. Indicatively, according to this article, more than 30 million users worldwide have downloaded and used it.
Metamask is the easiest way to connect and interact with decentralized applications (Dapps).
Finally, it is also available as a mobile app.
In Metamask, you cannot store Bitcoin. You can only store cryptocurrencies from supported blockchains. Some of them are:
EthereumBinance Smart Chain.MaticFantomAvalanche
You can download Metamask here.
👉 If you’re going to invest in Bitcoin, Metamask is not for you. I think you should start using Metamask when you are able to “navigate” decentralized applications.
Binance
Binance is the most popular exchange in the world.
Screenshot from Binance’s website.
They also take safety very seriously, and I have the impression that this company is “too-big-to-fail.” That is, it is now so big that it is very (very difficult) for something to happen.
Of course, never say never.
Anyway, I think it’s unlikely that something will happen to Binance. I do NOT recommend having your cryptocurrencies there, though. You will only put money or cryptocurrencies in Binance when you want to buy a cryptocurrency you can’t find in Exodus or Metamask.
Next Steps
So your next steps are:
Download the Exodus wallet on your computer and mobile and create an account.Create an account on Binance and download it on your computer and mobile.[Optional] Install Metamask in your browser and create an account.
These are the first steps. When you are done with these, then you will move on to investing.
⚠️ WARNING: Be sure to download wallets and create accounts from the official websites — not from fake ones that mimic the real ones. Always check that the domain of the website is the correct one.
Which cryptocurrencies to buy?
This is a very long chapter to discuss. But before I tell you, I’m going to make a disclaimer.
I’m not an expert in cryptocurrencies, nor am I an expert in investing. These are just my opinions, and I’m just telling you what I do. I recommend that you get investment advice from someone who is an expert on the subject. If you get involved in cryptocurrencies, you could lose your money.
Now that we’ve made it clear that I’m not an expert and that if you lose your money, it’s not my fault, I’ll tell you that anyone you ask today will tell you about their “own” cryptocurrencies.
They’ll tell you about some Shiba Inu, some doggies, some kittens, some pets, and they all gonna tell you that these cryptos are to make you a millionaire, they’re going to the moon, and so on.
Every day dozens of new cryptocurrencies are popping up each one that it will become the dominant cryptocurrency for payments, that it will kill Ethereum etc.
But because I believe that reading this article signals that you are “new” to the space, I will suggest you invest and continue to invest every month in Bitcoin and Ethereum.
But why in Bitcoin and Ethereum?
Because they are not going anywhere. They are here to stay.
All the other cryptocurrencies may be here today, tomorrow, they may not.
Bitcoin and Ethereum — I believe — are here to stay, have nowhere to go and that in 10 years, their prices will multiply.
But again, I am NOT an expert, and what I say is only my opinions.
Along the way, when you get used to and feel more comfortable in the cryptocurrency space, you can STUDY and judge when to buy and when and if to sell a particular cryptocurrency.
For now though, its best to stick to the basics.
How to buy cryptocurrencies
Here’s a short step-by-step guide showing you how to buy Bitcoin from Exodus and how to buy Bitcoin from Binance.
How to buy cryptocurrencies from Exodus
1️⃣ After you download and install Exodus on your computer, log in to your Exodus Wallet and click on the dollar icon.
2️⃣ Choose your fiat currency, enter the amount you want to spend and press the button to continue.
3️⃣ You will automatically be redirected to the website of Ramp — Exodus Wallet partner for processing payments.
4️⃣ Enter your email and click the button to continue.
5️⃣ A password will be sent to the email you entered before. Write it in the boxes.
This is what the email you receive will look like
6️⃣ Once you’ve put it in, the app will automatically redirect you to the next page. Your Bitcoin address will automatically appear in the field. Then press the button to continue.
7️⃣ Choose the method you want to pay. You can choose to make a bank transfer with Revolut, pay with your card or make a bank transfer through your bank. If you choose the second or third option, make sure that your bank lets you transact with crypto companies.
👉 If you don’t have Revolut, click here to create one.
How to buy cryptocurrency with Binance
1️⃣ After you create an account, log in and go to “Buy Crypto”. Then click on the buy with card option.
2️⃣ Select the amount you want to invest and click on the button to continue.
3️⃣ Enter your card details and then press continue. Make sure your bank allows you to use your card with crypto companies. Otherwise use Revolut.
4️⃣ Agree to the terms and conditions by clicking on the littly box and then press the button to continue.
5️⃣ You have 10 seconds to press the confirm button to proceed with the purchase. If you don’t press it, simply the transaction will not take place.
👉 I’ll tell this again. Make sure your bank allows you to transact with cryptocurrency companies. If not, then you better can get a Revolut to get out of it.
Where to invest your cryptocurrencies
Now, if you are familiar with the cryptocurrency space, already have cryptocurrencies, and are looking for a safe place to invest them, then I have two websites that I have been using for over 6 months.
These websites have not been collapsed by the recent “slaps” that the cryptocurrency market has taken (Celsius, Vault, Three Arrows Capital, Terra-Luna fiasco, etc).
I am referring to NEXO and MIDAS Investments.
Νexo
Screenshot from Nexo’s homepage
Nexo is a DeFi company that allows you to deposit your cryptocurrency and gives you interest on your deposits.
Nexo lends the value of the cryptocurrencies (not the cryptocurrencies) from all depositors to borrowers from whom it charges interest on the value of their loan.
With Nexo, you, too, can get a loan and use your cryptos as collateral.
The money you get in a loan, you can send it to another account or spend it through your Nexo Card or Nexo Virtual Card — which is compatible with Google pay.
I’ve been using Nexo for the last 2 years without any problems.
I won’t hide it, I coughed when the “trouble” with LUNA happened and took my cryptocurrencies out, but when the “storm” passed, I put them back in.
Click here to create an account with NEXO.
Midas.Investments
Screenshot from Midas Investments Website
Midas is an investment platform that generates high compounding returns for its clients by investing in various defi strategies (more on this below).
It is managed by a team of financial experts who, according to their website, “has over 20 years of investment experience and 30 years in product development”.
The CEO of the company is Iakov Levin. He’s not one of those CEOs who are anonymous or anything. His Linkedin profile is this, and this is his Twitter account.
The way they generate returns is through various Defi strategies, such as:
Borrowing and lendingDeFi yield lockersOffsetting token farmingConcentrated liquidity provider in Uniswap V3
Don’t get me wrong, but I don’t really understand how all these defi strategies work in order to explain them. As I mentioned before, I am not an expert nor am I competent to give investment advice.
But I am sure that a simple online search will give you the answers on how these defi strategies work.
And, in short, the Midas guys take your cryptocurrency, invest it in various products and DeFi strategies, make a shitload of money and return a nice percentage of their profits back to you — without you lifting a finger.I’ve been with the company for the last 8 months and I’m very happy with:
Their user-friendly platformTheir user-friendly user interface and their easy-to-use user interface.Their “doxed” CEO who doesn’t hide and is active on social networks.Your cryptocurrencies are NOT locked, and you can take them out at any time.The platform has great reviews on Trustpilot
So, to me, this is a win-win situation. I can deposit my Bitcoin, Ethereum, and other cryptocurrencies, earn high returns without much effort.
I even wrote a more detailed review for them a while ago. You might want to check it out.
Click here to create an account with Midas.Investments.
Tips to be even safer in the cryptocurrency space
✅ 12 words — Write them on 2–3 pieces of paper and put them in a different place. Tell your partner where it is so he/she knows in case something happens to you (if you trust him/her, of course).
✅ “Friends” who want to help you — Don’t reply to anyone you offer to help you online who you don’t know personally. Who probably wants to rip you off.
✅ Messages from strangers — Don’t reply to chicks who message you first. Unless you’re beautiful and they see you and go crazy. They definitely don’t have your best interests at heart.
✅ Don’t click on links in emails — Double check and make sure the email you get from Binance, Metamask, Exodus, or any other service you deal with is from them. There is a tactic called “phishing emails,” whose sole purpose is to install malware and keyloggers on your computer to steal your passwords.
✅ Find a good malware protection — Find a good malware protection for your computer and smartphone. For example, Avast, Panda antivirus ή Total AV.
✅ Don’t download software applications on your phone that you haven’t double-checked — As with “phishing emails,” there are applications that install little programs that target your passwords or anything you copy-paste.
✅ Be careful which Network you use — A cryptocurrency can support 5 different blockchains. If someone will send you, for example Tether (USDT), you need to agree and the blockchain network that will be used. Tether can be sent via Ethereum, Avalanche, Binance Chain, Tron etc. If you send someone 100 Euros worth of Tether via the Ethereum Blockchain, but the address the recipient gave you is on the Tron Blockchain, then the money is lost.
Final Words
There is so much more to learn to move comfortably in the world of cryptocurrencies.
At least now you know how to invest in cryptocurrencies safely in 2022. These are the first steps. Once you learn to do this comfortably, then you will start to understand more about the rules and what to look out for.
If you have any questions, leave them in the comments, and I’ll answer them as soon as possible. Also, if you have suggestions on how to make this article better, I’m interested in hearing them.
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