Since cryptocurrency investing is still a relatively new field, many people may find it overwhelming to navigate the intricacies of the industry. But as the cryptocurrency sector makes a significant comeback in 2024, more people—including those who were previously dubious—are becoming interested in it. Many people now take digital assets more seriously as a component of an investing portfolio, which is indicative of a change in how people view them.

It’s critical to approach cryptocurrency investments carefully and strategically in light of this expanding trend. Because of the market’s volatility and particular difficulties, meticulous planning is necessary to reduce risks and optimize possible rewards. Here are some essential guidelines to follow before making a bitcoin investment to get you started.

1. Learn the fundamentals of cryptocurrency

Gaining a basic grasp of the fundamental ideas underlying this digital economy is essential before making any bitcoin investments. For example, an important place to start is by understanding that Bitcoin is the first and most well-known cryptocurrency. The process of creating Bitcoin, known as mining, entails resolving challenging mathematical puzzles in order to verify and protect transactions on a decentralized digital network. Understanding blockchain technology, which forms the foundation of the majority of cryptocurrencies, is equally crucial. It will be easier to see why cryptocurrencies like Bitcoin and Ether are regarded as revolutionary if you understand how blockchain operates.

These fundamentals provide a starting point for more securely navigating the cryptocurrency market and making wise investing choices.

2. Read the news and stay informed

As the world of cryptocurrencies changes at a never-before-seen rate, authorities’ approaches to crypto legislation are also changing dramatically. Once pervasive, mistrust regarding cryptocurrencies is progressively waning as digital assets are more incorporated into traditional banking and business. Because regulatory changes can have a significant impact on the market, this increased acceptance emphasizes how important it is to be informed.

At the same time, hundreds of new cryptocurrencies have been created as a result of the cryptocurrency industry’s explosive growth. But not all of these have strong bases; a lot of them are overhyped and unsustainable in the long run. Avoiding potential problems requires being able to distinguish between ideas that are motivated by speculation and those that are truly creative and sustainable. You may arm yourself with the knowledge required to make wise investing decisions by closely monitoring market movements, regulatory changes, and new trends.

3. Select the appropriate cryptocurrency wallet

Unlike conventional investments like cash, bank accounts, or tangible assets like jewelry, which can be kept in familiar and tactile ways, cryptocurrency is not. Rather, cryptocurrency necessitates a special kind of storage: a cryptocurrency wallet. These wallets are electronic devices made especially to safely store and handle your cryptocurrency.

A critical first step in your investing adventure is figuring out what kind of cryptocurrency wallet is best for you. There are many different types of cryptocurrency wallets, and each one has unique features and security levels. When selecting a cryptocurrency wallet, you must take into account a number of factors that impact its security and compatibility, such as whether you want it to be hot or cold, custodial or non-custodial.

4. Choose the best cryptocurrency buying platform

As cryptocurrencies gain popularity, many platforms increasingly advertise that they allow users to purchase Bitcoin and other cryptocurrencies. These platforms aren’t all authentic, though. Unwanted emails, texts, or haphazard posts on social media are common ways for scams to appear, enticing gullible people with claims of simple cryptocurrency purchases or assured refunds.

It’s crucial to be cautious and do extensive research before investing your money in any site. A substantial financial loss could arise from falling for a fraudulent platform, as not all of them are trustworthy or safe. In the US, reputable cryptocurrency exchanges like Coinbase (COIN) and Kraken are regarded as trustworthy choices for cryptocurrency holding, trading, and purchases.

5. Crypto can be purchased for $10

The idea that you need to buy all of Bitcoin or any other cryptocurrency to get started is a widespread fallacy among those who are new to the world of cryptocurrencies. This is just untrue. Cryptocurrencies are accessible to investors with different budgets since they are easily divisible, allowing you to purchase fractions of a currency. Bitcoin can be purchased for as little as $50. Fractional purchases are also possible with numerous other cryptocurrencies, some of which start at just $10.

One of the factors contributing to the popularity of cryptocurrencies is their adaptability. By lowering the entry barrier, it allows people to invest based on their financial situation rather than feeling pressured to buy an entire coin. A perfectly acceptable and sensible way to get into the market is to purchase a percentage of a cryptocurrency, regardless of your beginning capital or portfolio diversification goals.

6. You don’t have to buy Bitcoin or cryptocurrency to invest in it

Investing in cryptocurrencies has grown in popularity as a way to create income and secure long-term financial stability. However, outright purchasing and selling isn’t always necessary to make money with cryptocurrency. It’s important to note that there are other ways to have exposure to this dynamic asset class without the hassles of direct ownership, such as crypto ETFs, options, crypto stocks, etc., for people who are worried about holding or directly owning Bitcoin.

7. Only make investments you can afford to lose

Cryptocurrency is still a very volatile asset class in spite of its novel features and special status as a financial instrument. Investing only money you can afford to lose is a basic rule. Should the worst happen, like a market meltdown or an unanticipated change in regulations, you should be ready to lose all of your money. Generally speaking, you shouldn’t put more than 5% of your entire financial portfolio into cryptocurrency. This strategy reduces risk to your overall financial well-being while enabling you to take advantage of any growth.

8. Don’t fall for any arbitrary cryptocurrency

There are already over 10,000 distinct cryptocurrencies on the market, which has expanded rapidly. These cryptocurrencies are not all created equal, though. Many of them lack substance and are largely motivated by speculation, but some have solid foundations and real-world applications.

For example, cryptocurrencies known as memecoins, which are usually made as jokes or based on online trends, frequently see fast price increases driven by investor concentration and social media buzz. These coins are infamously volatile and can fall just as soon as they climb, leaving latecomers with a sizable loss, even if they may provide momentary enthusiasm.

The safest course of action for novices is to concentrate on well-known, significant cryptocurrencies with track histories and practical uses. Cryptocurrencies with strong ecosystems, active developer communities, and widespread recognition include Bitcoin, Ether, and Solana. These assets are regarded as the cornerstone of the cryptocurrency ecosystem and are less vulnerable to severe volatility than smaller, speculative tokens.

9. Learn how to handle FUD and FOMO

The market for cryptocurrencies is notoriously volatile, which can cause investors to experience strong emotional reactions. Many people suffer from FOMO, or the fear of missing out, when prices rise, which causes them to rashly buy into the buzz. On the other hand, FUD—fear, uncertainty, and doubt—can arise during market downturns, leading to panic and hasty selling choices.

It’s critical to understand that effective investment involves taking a long-term, strategic strategy rather than emotionally responding to transient market fluctuations. In order to avoid overextending oneself by buying a plethora of cryptocurrencies during a bull run, discipline is essential. Likewise, avoid the temptation to sell out of fear when the market has a significant decline.

10. Additionally, there are always some exceptions

The cryptocurrency space is always changing, taking new paths as it develops and adjusts. There are exceptions to the rule that most cryptocurrencies, especially memecoins, are mostly driven by trends, speculation, and pump-and-dump operations. Consider Dogecoin. Despite being a joke at first, it surprised everyone by ranking among the top 10 cryptocurrencies by market capitalization because of its vibrant community and expanding usefulness.

Likewise, cryptocurrency trading platforms and exchanges are a vital component of the ecosystem. It is usually advised to trade on reputable cryptocurrency platforms because they provide more functionality and dependability. This does not, however, automatically imply that your money will be secure.

FTX, which was formerly regarded as a top cryptocurrency exchange, is among the most striking examples of this. Millions of users trusted FTX, and its founder, Sam Bankman-Fried, was praised as a crypto genius. However, it was eventually discovered that the business had engaged in extensive fraud, which led to one of the worst financial scandals in history. The demise of FTX was a sobering reminder that even platforms that appear to be trustworthy can go down, highlighting the significance of careful research and prudent investing.

As the cryptocurrency market expands, it is critical for investors to maintain vigilance and acknowledge that there can always be some unusual circumstances.

Zopper, an insurtech firm, announced in a note today that it has raised $25 million in a new round of funding led by Elevation Capital and Dharana Capital.

Dharana Capital has supported companies like NoBroker and Urban Company, while Elevation Capital is an active investor in the Indian fintech ecosystem.

The financing also included Blume Ventures, an existing investor. Other investors in Zopper include Creaegis, Bessemer Venture Partners, and ICICI Venture. To date, the business has raised a total of $96 million in equity investment.

The business from Noida will utilize the money to improve its insurance distribution network and expand its digital technology infrastructure. Additionally, the funds will improve Zopper’s device and appliance protection businesses’ post-sales and maintenance capabilities and speed up the expansion of the company’s current bancassurance products. The method used to sell insurance products through banking channels is known as the bancassurance model.

Banks and other businesses can use Zopper’s technology stack to package and market insurance products to their clients.

The company claimed in a statement that it presently has over 2,500 ecosystem actors and 40 insurance providers as partners.

At the moment, Zopper offers customized insurance solutions for consumers in India by integrating them into the ecosystem’s current digital channels.

“We are here to transform and automate the insurance distribution model in India, effectively, strategically and keeping customers in mind. We are mission-focused as a team. If we get this right, it will be transformational for the ecosystem and the country,” stated Mayank Gupta, Zopper’s chief operating officer.

As the e-commerce behemoth competes with Big Tech rivals to profit from generative artificial intelligence technology, Amazon.com (AMZN.O.) opened a new tab and invested an additional $4 billion in OpenAI opponent Anthropic.

Amazon’s stake in the company famed for its GenAI chatbot Claude has doubled, but it is still a minority investor, the business announced on Friday. Like Amazon’s prior $4 billion investment, it is made in installments, starting at $1.3 billion and taking the form of convertible notes.

According to sources who asked not to be named in order to discuss private topics, Anthropic is also in discussions with other investors in order to raise more money with Amazon’s support.

Amazon, which has steadily become Anthropic’s main cloud partner, is in intense competition with Alphabet’s Google (GOOGL.O) and Microsoft (MSFT.O) to provide AI-powered tools for its cloud clients. As a major distributor of its most recent models, AWS is generating a substantial amount of revenue for Anthropic.

“The investment in Anthropic is essential for Amazon to stay in a leadership position in AI,” Gil Luria, an analyst at D.A. Davidson, stated.

The increased investment by the e-commerce giant in Anthropic highlights the billions of dollars that have been invested in AI startups in the past year as investors seek to profit from the technology’s surge in popularity following the release of OpenAI’s ChatGPT in late 2022.

Last month, Microsoft-backed OpenAI collected $6.6 billion from investors, potentially valuing the company at $157 billion and solidifying its place among the world’s most valuable private enterprises.

Anthropic intends to use Amazon’s Trainium and Inferentia chips to train and implement its core models. Securing expensive AI chips is a big concern for startups since the rigorous process of training AI models demands powerful processors.

“It (partnership) also allows Amazon to promote its AI services such as leveraging its AI chips for training and inferencing, which Anthropic is using,” Luria stated.

Amazon is one of the many so-called hyperscaler clients of Nvidia (NVDA.O), which opens a new tab and presently controls the market for AI chips.

However, through its Annapurna Labs branch, which Anthropic stated it was “working closely with” to help create CPUs, Amazon has been striving to develop its own chips. Additionally, Amazon has been working on developing its own AI model, code-named “Olympus,” which it has not yet made public.

Anthropic, which was co-founded by brothers Dario and Daniela Amodei, former executives at OpenAI, said last year that it had obtained a $500 million investment from Alphabet, which pledged to contribute an additional $1.5 billion over time.

The startup’s operations also make advantage of Alphabet’s Google Cloud capabilities.