TL;DR

Bitcoin may be one of the most popular coins to invest in, but it is not the only one. Altcoins provide a great alternative when buying crypto that can increase the diversity of your portfolio.

Your choice of crypto should also be taken into account when investing or trading, as well as the risk profile and type of analysis you wish to perform. You can choose fundamental or technical analysis, or even a mix of both. Taking everything into account, you will be ready to start investing or trading on Binance.

Introduction

Investing in Bitcoin and other cryptocurrencies is a great way to diversify investments, but there are high risks involved. So, before jumping in, it's important to understand some basic concepts and principles. There's something other than buying some crypto and then hoping for the best.

Quality investment decisions involve careful research and analysis. Ideally, you should have a strategy based on your risk profile and you should not invest more than you can afford to lose.

Bitcoin or altcoins?

For crypto beginners, Bitcoin is usually the first choice when it comes to investment. Bitcoin is a well-known blockchain project and the largest cryptocurrency by market capitalization.

However, there are thousands of different cryptocurrencies (altcoins) out there. Some altcoins have their own blockchain, while others use existing networks (such as Binance Smart Chain or Ethereum). Each project has a different proposal, each with its own potential risks and benefits.

You can decide to invest in BTC alone or several crypto assets. Some people still prefer BTC, while others choose to diversify their holdings with altcoins.

On the one hand, asset diversification eliminates the risk of investing in just one project. If you have multiple assets, you are less likely to lose a significant amount if one of them fails. On the other hand, investing in altcoins can be risky and unfortunately, there are a lot of scams out there. So, it's important to do your own research before taking the plunge.

With so many coins available, it's hard to know where to start. Read What Crypto to Buy Apart from Bitcoin? for more information about various types of cryptocurrencies.

Should I trade or invest?

The decision of what to buy should also be taken into account if you are investing or trading. The two can be confused with each other, but there are differences. Simply put, investing requires selecting assets you believe in and holding them for a longer period of time. These strategies involve a less active time commitment and usually involve lower risk.

Instead, trading aims to generate short- or medium-term profits through periodic buying and selling. Becoming a good trader takes a lot of time and practice. A trader must develop more complex strategies, dedicate more time to analyzing markets and trading platforms, and handle more risks. Traders should also consider the money spent on transaction and trading fees.

Remember that cryptocurrency markets sometimes give rise to greater volatility than traditional ones. Although traders need volatility to generate profits, high levels of volatility also introduce higher risks.

For beginners, investing is by far the easiest and safest option. Investors usually focus on years. So, short-term price changes are not that important. The decision to invest is based more on a coin's fundamentals (the solidity of the project and its likelihood of being successful in the long term).

Some people choose to invest and not worry about short-term fluctuations. Others choose to trade, often in an effort to maximize profits. Some people even do both at the same time. It all depends on strategy, profile and risk tolerance.

Again, the decision is in your hands. However, You cannot invest or trade with funds that are not willing to be accepted when lost.

That said, if you want to learn more about crypto day trading and swing trading, you can find more information in our Complete Guide to Cryptocurrency Trading for Beginners.

Fundamental vs. fundamental analysis technical analysis

Deciding on a good thing to invest in requires some analytical work. The type of analysis will depend primarily on investing or trading, but both fundamental and technical analysis can be useful.

As mentioned, medium and short term price changes are not that important when investing (or HODLing). In general, long-term investing is more concerned with the intrinsic value of a coin or project as it relates to fundamental analysis (FA).

Fundamental analysis includes assessing an asset's potential based on the project as a whole, including utility, team, whitepaper, development, marketing, management, long-term goals, and other factors.

In contrast, technical analysis (TA) considers volume data and previous price action to try and predict future price movements. This technique usually involves candlestick charts and TA indicators, such as moving averages and trend lines.

Bought first bitcoin on Binance

You can buy bitcoin and other altcoins easily on the Binance crypto exchange.

1. Create an account by visiting the Binance home page and clicking [Register] in the top right corner.

2. Next, you have to verify your Binance account. This KYC process helps you ensure that you are who you claim to be and meet our legal requirements.

3. The easiest method to buy some crypto is using a credit card or debit card with the Convert feature.

You can also transfer fiat currency from your bank account to purchase digital assets with the trading view. See the Binance Beginner's Guide for complete instructions for both methods.

Bought first altcoin on Binance

You can start diversifying your portfolio by buying altcoins like BNB which are utility tokens with many uses.

1. Log in to your Binance account, navigate to the [Buy Crypto] button, then click [Credit/Debit Card].

2. Next, you will be able to choose from a variety of cryptocurrencies. Make sure to choose the correct fiat currency as well. In this example, we will choose to buy BNB with EUR.

3. Fill in your card details to finalize the purchase then wait for the crypto to be credited to your account.

What to do with my cryptocurrency?

Buying, selling, and holding crypto are some of the strategies that can be used when investing or trading crypto. When it comes to long-term holdings, you can choose to keep your cryptocurrency in your Binance account or transfer it to an external cryptocurrency wallet.

If you choose to store your crypto in a Binance account, you may consider exploring the options provided by Binance Earn. You can think of it as a savings account that allows you to generate passive income while owning crypto.

Closing

It takes some time to learn how to invest or trade cryptocurrencies. Increasing knowledge is a great way to reduce overall investment risk, thereby providing better quality decisions. It is easy to panic sell assets based on emotions, but the chances of this are lower if you learn about investing and trading. For more, read The Psychology of Market Cycles.