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How to Invest in Cryptocurrency - A Step by Step Guide

Learn how to invest in a cryptocurrency with this step-by-step guide.
Token Metrics Team
8 minutes
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If you are wondering how to invest in the cryptocurrency space, this is the perfect place to be.

As the world of cryptocurrency continues to expand, it is important to understand what to consider before investing in cryptocurrency. This guide will provide you with a comprehensive overview of the most important things to consider before investing in cryptocurrency, including what to look for in a potential investment, alternative ways to buy a crypto, how to keep your cryptocurrency secure, and tips for investing responsibly.

Introduction to Cryptocurrency Investing

Cryptocurrency investing can be an exciting and potentially profitable venture. But it's important to understand the risks associated with investing in cryptocurrency and the steps you should take before investing your hard-earned money. Cryptocurrency investing is a relatively new concept and the market is constantly evolving. It's important to do your research and understand the potential risks and rewards before jumping in.

In order to make an educated decision about whether or not cryptocurrency investing is right for you, you need to understand the basics of cryptocurrency investing. A cryptocurrency is a form of digital currency that is not controlled by any central authority, such as a government or bank. Instead, it is created and maintained by a decentralized network of computers that use cryptography to secure transactions. Cryptocurrency is typically exchanged for goods and services, or for other forms of currency.

There are a few key differences between cryptocurrency and traditional currencies. For one, cryptocurrency is not backed by any physical asset, such as gold or a government-issued currency. Additionally, cryptocurrency is not regulated by any government or financial institution. This means that the value of cryptocurrencies can be highly volatile and unpredictable, which can make investing in them a risky endeavor.

What to Consider Before Investing in Cryptocurrency

Before investing in cryptocurrency, it is important to understand the risks associated with it. Cryptocurrency is not backed by any physical asset, so its value is highly volatile and unpredictable. This means that investments can quickly lose value, and there is no guarantee that you will get your money back. Additionally, cryptocurrency is not regulated by any government or financial institution, so it can be difficult to know who to trust and who to avoid.

When considering whether or not to invest in cryptocurrency, it's important to understand the different types of cryptocurrencies available. There are thousands of different cryptocurrencies on the market, each with its own set of characteristics and features. It's important to research each type of cryptocurrency and determine which one might be the best fit for your investment goals.

You should also consider the cost of investing in cryptocurrency. Cryptocurrency is a global market, so the cost of investing in it can vary significantly from one country to the next. Additionally, different exchanges may charge different fees for trading. It's important to research the fees associated with each exchange to ensure you are getting the best deal.

Finally, it's important to understand the potential tax implications of investing in cryptocurrency. Many countries have different regulations regarding the taxation of cryptocurrency investments, so it is important to understand the rules in your area before investing.

Alternative Ways to Buy Cryptocurrency

When it comes to investing in cryptocurrency, there are a few different ways to go about it. The most popular way to purchase cryptocurrency is through an online exchange. These exchanges are typically easy to use and offer a variety of different cryptocurrencies. Additionally, some exchanges offer lower fees than others, so it's important to shop around for the best deal.

Another option for investing in cryptocurrency is to purchase it directly from an individual. This can be done through a peer-to-peer platform, such as LocalBitcoins. This allows you to purchase cryptocurrency directly from another individual, without having to go through an exchange. However, this method can be riskier than using an exchange, as there is no guarantee that the person you are purchasing from is legitimate.

Finally, there are some platforms that allow you to purchase cryptocurrency with a credit or debit card. This is typically the easiest and most convenient way to purchase cryptocurrency, but it also has some drawbacks. Credit and debit card purchases typically come with higher fees than other methods, and the transactions can be reversed if the seller does not deliver the cryptocurrency as promised.

The 5-Step Process of Crypto Investing

Follow this 5-step process to make first cryptocurrency investment.

Step #1 Choose a Broker or Crypto Exchange

If you are new to crypto, you can start off by choosing a broker or a crypto exchange. Although both serve the same purpose, there is a tiny difference between them.

Cryptocurrency Exchange is a third-party company that can help you invest in crypto with a convenience fee. Both buyers and sellers can actively trade cryptocurrencies using the platform. Having said that, make sure to learn enough about the standard crypto trading platforms before investing.

Step #2: Create and Authenticate Your Account

Once you are set with the platform, now you have to simply create an account and then authenticate yourself to start hassle free trading. 

Step #3: Link Your Bank Account to Your Crypto Account 

Now that you have verified your account, it is time to add your bank account or use a debit card to ensure cash deposit to invest in crypto. 

Step #4: Place Your Cryptocurrency Order

Yes! You are almost there. You just need to take one more step of placing your cryptocurrency order to start your trade. You can enter the ticker symbols, such as BTC for Bitcoin, and invest as you please. 

Step #5: Choose Your Storage Method

Since cryptocurrency exchanges are not regulated or secured widely, it is essential that you choose an appropriate storage method to avoid the risk of theft or hacking. It is best to store cryptocurrencies offline or in a cold wallet like Ledger.

How to Keep Your Cryptocurrency Secure?

Once you have purchased your cryptocurrency, it is important to take steps to keep it secure. The first step is to create a secure wallet to store your cryptocurrency. There are a variety of different wallets available, so you should research each one and determine which one is best for your needs.

Once you have chosen a wallet, it is important to create a strong password and keep it safe. This password should be unique and difficult to guess. Additionally, you should enable two-factor authentication whenever possible. This will require a second form of verification, such as a code sent to your phone, before you can access your wallet.

It is also important to keep your wallet backed up. Many wallets offer the ability to export your funds to a secure backup. This will ensure that you can recover your funds if something were to happen to your wallet. You should also keep your wallet updated with the latest security patches to help ensure that your funds are safe.

Tips for Investing Responsibly

Cryptocurrency investing can be an exciting and potentially lucrative venture, but it's important to invest responsibly. Before investing, it's important to understand the risks associated with cryptocurrency investing, such as the potential for highly volatile prices. Additionally, it's important to understand the tax implications of investing in cryptocurrency and ensure that you are following all applicable laws.

It's also important to diversify your investments. Rather than investing all your money into a single cryptocurrency, it's wise to spread your investments across a variety of different coins and tokens. This will help to reduce your risk and ensure that you are diversifying your portfolio.

Finally, it's important to invest only what you can afford to lose. The cryptocurrency market is highly unpredictable, so there is always the potential for losses. It's important to remember that investing in cryptocurrency is a long-term process and that short-term gains should not be your primary focus.

As an investor, you need an acute understanding of what could be the potential cryptocurrencies that make you good fortune. And for that, you need to dig deeper into analyzing hundreds of coins to know and understand the best investments to make. 

We help with that. Token Metrics is an AI-based crypto-research platform that can save you hours of research and bring you accurate data to make an informed decision. 

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Conclusion

Cryptocurrency investing can be an exciting and potentially profitable venture, but it's important to understand the risks and rewards before investing your hard-earned money. This guide has provided you with a comprehensive overview of the most important things to consider before investing in cryptocurrency, including what to look for in a potential investment, alternative ways to buy cryptocurrency, how to keep your cryptocurrency secure, and tips for investing responsibly. With the right knowledge and strategies, you can invest in cryptocurrency with confidence and reap the rewards of a successful investment.

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Recent Posts

Research

API Endpoint Essentials: Design, Security & Tips

Token Metrics Team
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APIs power modern software by exposing discrete access points called endpoints. Whether you re integrating a third-party data feed, building a microservice architecture, or wiring a WebSocket stream, understanding what an api endpoint is and how to design, secure, and monitor one is essential for robust systems.

What is an API endpoint and how it works

An api endpoint is a network-accessible URL or address that accepts requests and returns responses according to a protocol (usually HTTP/HTTPS or WebSocket). Conceptually, an endpoint maps a client intent to a server capability: retrieve a resource, submit data, or subscribe to updates. In a RESTful API, endpoints often follow noun-based paths (e.g., /users/123) combined with HTTP verbs (GET, POST, PUT, DELETE) to indicate the operation.

Key technical elements of an endpoint include:

  • URI pattern (path and optional query parameters)
  • Supported methods (verbs) and expected payloads
  • Authentication and authorization requirements
  • Response format and status codes
  • Rate limiting and throttling rules

Endpoints can be public (open to third parties) or private (internal to a service mesh). For crypto-focused data integrations, api endpoints may also expose streaming interfaces (WebSockets) or webhook callbacks for asynchronous events. For example, Token Metrics is an example of an analytics provider that exposes APIs for research workflows.

Types of endpoints and common protocols

Different application needs favor different endpoint types and protocols:

  • REST endpoints (HTTP/HTTPS): Simple, stateless, and cache-friendly, ideal for resource CRUD operations and broad compatibility.
  • GraphQL endpoints: A single endpoint that accepts queries allowing clients to request exactly the fields they need; reduces overfetching but requires careful schema design and complexity control.
  • WebSocket endpoints: Bidirectional, low-latency channels for streaming updates (market data, notifications). Useful when real-time throughput matters.
  • Webhook endpoints: Server-to-server callbacks where your service exposes a publicly accessible endpoint to receive event notifications from another system.

Choosing a protocol depends on consistency requirements, latency tolerance, and client diversity. Hybrid architectures often combine REST for configuration and GraphQL/WebSocket for dynamic data.

Design best practices for robust API endpoints

Good endpoint design improves developer experience and system resilience. Follow these practical practices:

  1. Clear and consistent naming: Use predictable URI patterns and resource-oriented paths. Avoid action-based endpoints like /getUserData in favor of /users/{id}.
  2. Versioning: Expose versioned endpoints (e.g., /v1/users) to avoid breaking changes for consumers.
  3. Input validation: Validate payloads early and return explicit error codes and messages to guide client correction.
  4. Pagination and filtering: For list-heavy endpoints, require pagination tokens or limits to protect backend resources.
  5. Documentation and examples: Provide schema samples, curl examples, and expected response bodies to accelerate integration.

API schema tools (OpenAPI/Swagger, AsyncAPI) let you define endpoints, types, and contracts programmatically, enabling automated client generation, testing, and mock servers during development.

Security, rate limits, and monitoring

Endpoints are primary attack surfaces. Security and observability are critical:

  • Authentication & Authorization: Prefer token-based schemes (OAuth2, JWT) with granular scopes. Enforce least privilege for each endpoint.
  • Transport security: Enforce TLS, HSTS, and secure ciphers to protect data in transit.
  • Rate limiting & quotas: Apply per-key and per-IP limits to mitigate abuse and preserve quality of service.
  • Input sanitization: Prevent injection attacks by whitelisting allowed fields and escaping inputs.
  • Observability: Emit structured logs, traces, and metrics per endpoint. Monitor latency percentiles, error rates, and traffic patterns to detect regressions early.

Operational tooling such as API gateways, service meshes, and managed API platforms provide built-in policy enforcement for security and rate limiting, reducing custom code complexity.

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What is the difference between an api endpoint and an API?

An API is the overall contract and set of capabilities a service exposes; an api endpoint is a specific network address (URI) where one of those capabilities is accessible. Think of the API as the menu and endpoints as the individual dishes.

How should I secure a public api endpoint?

Use HTTPS only, require authenticated tokens with appropriate scopes, implement rate limits and IP reputation checks, and validate all input. Employ monitoring to detect anomalous traffic patterns and rotate credentials periodically.

When should I version my endpoints?

Introduce explicit versioning when you plan to make breaking changes to request/response formats or behavior. Semantic versioning in the path (e.g., /v1/) is common and avoids forcing clients to adapt unexpectedly.

What are effective rate-limiting strategies?

Combine per-key quotas, sliding-window or token-bucket algorithms, and burst allowances. Communicate limits via response headers and provide clear error codes and retry-after values so clients can back off gracefully.

Which metrics should I monitor for endpoints?

Track request rate (RPS), error rate (4xx/5xx), latency percentiles (p50, p95, p99), and active connections for streaming endpoints. Correlate with upstream/downstream service metrics to identify root causes.

When is GraphQL preferable to REST for endpoints?

Choose GraphQL when clients require flexible field selection and you want to reduce overfetching. Prefer REST for simple resource CRUD patterns and when caching intermediaries are important. Consider team familiarity and tooling ecosystem as well.

Disclaimer

The information in this article is technical and educational in nature. It is not financial, legal, or investment advice. Implementations should be validated in your environment and reviewed for security and compliance obligations specific to your organization.

Research

Understanding REST APIs: A Practical Guide

Token Metrics Team
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Modern web and mobile apps exchange data constantly. At the center of that exchange is the REST API — a widely adopted architectural style that standardizes how clients and servers communicate over HTTP. Whether you are a developer, product manager, or researcher, understanding what a REST API is and how it works is essential for designing scalable systems and integrating services efficiently.

What is a REST API? Core principles

A REST API (Representational State Transfer Application Programming Interface) is a style for designing networked applications. It defines a set of constraints that, when followed, enable predictable, scalable, and loosely coupled interactions between clients (browsers, mobile apps, services) and servers. REST is not a protocol or standard; it is a set of architectural principles introduced by Roy Fielding in 2000.

Key principles include:

  • Statelessness: Each request from the client contains all information needed; the server does not store client session state between requests.
  • Resource orientation: Everything is modeled as a resource (users, orders, posts), each identified by a URI (Uniform Resource Identifier).
  • Uniform interface: A standard set of operations (typically HTTP methods) operate on resources in predictable ways.
  • Client-server separation: Clients and servers can evolve independently as long as the interface contract is maintained.
  • Cacheability: Responses can be labeled cacheable or non-cacheable to improve performance and scalability.

How REST APIs work: HTTP methods, status codes, and endpoints

A REST API organizes functionality around resources and uses standard HTTP verbs to manipulate them. Common conventions are:

  • GET — retrieve a resource or list of resources.
  • POST — create a new resource under a collection.
  • PUT — replace an existing resource or create if absent (idempotent).
  • PATCH — apply partial updates to a resource.
  • DELETE — remove a resource.

Responses use HTTP status codes to indicate result state (200 OK, 201 Created, 204 No Content, 400 Bad Request, 401 Unauthorized, 404 Not Found, 500 Internal Server Error). Payloads are typically JSON but can be XML or other formats. Endpoints are structured hierarchically, for example: /api/users to list users, /api/users/123 to operate on user with ID 123.

Design patterns and best practices for reliable APIs

Designing a robust REST API involves more than choosing verbs and URIs. Adopt patterns that make APIs understandable, maintainable, and secure:

  • Consistent naming: Use plural resource names (/products, /orders), and keep endpoints predictable.
  • Versioning: Expose versions (e.g., /v1/) to avoid breaking clients when changing the contract.
  • Pagination and filtering: For large collections, support parameters for page size, cursors, and search filters to avoid large responses.
  • Error handling: Return structured error responses with codes and human-readable messages to help client debugging.
  • Rate limiting and throttling: Protect backends by limiting request rates and providing informative headers.
  • Security: Use TLS, authenticate requests (OAuth, API keys), and apply authorization checks per resource.

Following these practices improves interoperability and reduces operational risk.

Use cases, tools, and how to test REST APIs

REST APIs are used across web services, microservices, mobile backends, IoT devices, and third-party integrations. Developers commonly use tools and practices to build and validate APIs:

  • API specifications: OpenAPI (formerly Swagger) describes endpoints, parameters, responses, and can be used to generate client/server code and documentation.
  • Testing tools: Postman, curl, and automated test frameworks (JUnit, pytest) validate behavior, performance, and regression checks.
  • Monitoring and observability: Logs, distributed tracing, and metrics (latency, error rates) help identify issues in production.
  • Client SDKs and code generation: Generate typed clients for multiple languages to reduce integration friction.

AI-driven platforms and analytics can speed research and debugging by surfacing usage patterns, anomalies, and integration opportunities. For example, Token Metrics can be used to analyze API-driven data feeds and incorporate on-chain signals into application decision layers without manual data wrangling.

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FAQ: What is REST API — common questions

What is the difference between REST and RESTful?

"REST" refers to the architectural constraints described by Roy Fielding; "RESTful" is a colloquial adjective meaning an API that follows REST principles. Not all APIs labeled RESTful implement every REST constraint strictly.

How does REST compare to SOAP and GraphQL?

SOAP is a protocol with rigid standards and built-in operations (often used in enterprise systems). GraphQL exposes a single endpoint and lets clients request precise data shapes. REST uses multiple endpoints and standard HTTP verbs. Each approach has trade-offs in flexibility, caching, and tooling.

When should I version my REST API?

Version your API before making breaking changes to request/response formats or behavior that existing clients depend on. Common strategies include URI versioning (e.g., /v1/) or header-based versioning.

Are REST APIs secure by default?

No. Security must be designed in: use HTTPS/TLS, authenticate requests, validate input, apply authorization checks, and limit rate to reduce abuse. Treat REST APIs like any other public interface that requires protection.

How do I test and document a REST API effectively?

Use API specifications (OpenAPI) to auto-generate docs and client stubs. Combine manual testing tools like Postman with automated integration and contract tests in CI pipelines to ensure consistent behavior across releases.

Can REST APIs handle streaming or real-time data?

REST is request/response oriented and not ideal for continuous real-time streams. For streaming, consider WebSockets, Server-Sent Events (SSE), or specialized protocols; REST can still be used for control operations and fallbacks.

Disclaimer: This article is educational and technical in nature. It does not provide investment or legal advice. The information is intended to explain REST API concepts and best practices, not to recommend specific products or actions.

Research

FastAPI: Build High-Performance Python APIs

Token Metrics Team
4

FastAPI has become a go-to framework for teams that need production-ready, high-performance APIs in Python. It combines modern Python features, automatic type validation via pydantic, and ASGI-based async support to deliver low-latency endpoints. This post breaks down pragmatic patterns for building, testing, and scaling FastAPI services, with concrete guidance on performance tuning, deployment choices, and observability so you can design robust APIs for real-world workloads.

Overview: Why FastAPI and where it fits

FastAPI is an ASGI framework that emphasizes developer experience and runtime speed. It generates OpenAPI docs automatically, enforces request/response typing, and integrates cleanly with async workflows. Compare FastAPI to traditional WSGI stacks (Flask, Django sync endpoints): FastAPI excels when concurrency and I/O-bound tasks dominate, and when you want built-in validation and schema-driven design.

Use-case scenarios where FastAPI shines:

  • Low-latency microservices handling concurrent I/O (databases, HTTP calls, queues).
  • AI/ML inference endpoints that require fast request routing and input validation.
  • Public APIs where OpenAPI/Swagger documentation and typed schemas reduce integration friction.

Async patterns and performance considerations

FastAPI leverages async/await to let a single worker handle many concurrent requests when operations are I/O-bound. Key principles:

  1. Avoid blocking calls inside async endpoints. Use async database drivers (e.g., asyncpg, databases) or wrap blocking operations in threadpools when necessary.
  2. Choose the right server. uvicorn (with or without Gunicorn) is common: uvicorn for development and Gunicorn+uvicorn workers for production. Consider Hypercorn for HTTP/2 or advanced ASGI features.
  3. Benchmark realistic scenarios. Use tools like wrk, k6, or hey to simulate traffic patterns similar to production. Measure p95/p99 latency, not just average response time.

Performance tuning checklist:

  • Enable HTTP keep-alive and proper worker counts (CPU cores × factor depending on blocking).
  • Cache expensive results (Redis, in-memory caches) and use conditional responses to reduce payloads.
  • Use streaming responses for large payloads to minimize memory spikes.

Design patterns: validation, dependency injection, and background tasks

FastAPI's dependency injection and pydantic models enable clear separation of concerns. Recommended practices:

  • Model-driven APIs: Define request and response schemas with pydantic. This enforces consistent validation and enables automatic docs.
  • Modular dependencies: Use dependency injection for DB sessions, auth, and feature flags to keep endpoints thin and testable.
  • Background processing: Use FastAPI BackgroundTasks or an external queue (Celery, RQ, or asyncio-based workers) for long-running jobs—avoid blocking the request lifecycle.

Scenario analysis: for CPU-bound workloads (e.g., heavy data processing), prefer external workers or serverless functions. For high-concurrency I/O-bound workloads, carefully tuned async endpoints perform best.

Deployment, scaling, and operational concerns

Deploying FastAPI requires choices around containers, orchestration, and observability:

  • Containerization: Create minimal Docker images (slim Python base, multi-stage builds) and expose an ASGI server like uvicorn with optimized worker settings.
  • Scaling: Horizontal scaling with Kubernetes or ECS works well. Use readiness/liveness probes and autoscaling based on p95 latency or CPU/memory metrics.
  • Security & rate limiting: Implement authentication at the edge (API gateway) and enforce rate limits (Redis-backed) to protect services. Validate inputs strictly with pydantic to avoid malformed requests.
  • Observability: Instrument metrics (Prometheus), distributed tracing (OpenTelemetry), and structured logs to diagnose latency spikes and error patterns.

CI/CD tips: include a test matrix for schema validation, contract tests against OpenAPI, and canary deploys for backward-incompatible changes.

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FAQ: What is FastAPI and how is it different?

FastAPI is a modern, ASGI-based Python framework focused on speed and developer productivity. It differs from traditional frameworks by using type hints for validation, supporting async endpoints natively, and automatically generating OpenAPI documentation.

FAQ: When should I use async endpoints versus sync?

Prefer async endpoints for I/O-bound operations like network calls or async DB drivers. If your code is CPU-bound, spawning background workers or using synchronous workers with more processes may be better to avoid blocking the event loop.

FAQ: How many workers or instances should I run?

There is no one-size-fits-all. Start with CPU core count as a baseline and adjust based on latency and throughput measurements. For async I/O-bound workloads, fewer workers with higher concurrency can be more efficient; for blocking workloads, increase worker count or externalize tasks.

FAQ: What are key security practices for FastAPI?

Enforce strong input validation with pydantic, use HTTPS, validate and sanitize user data, implement authentication and authorization (OAuth2, JWT), and apply rate limiting and request size limits at the gateway.

FAQ: How do I test FastAPI apps effectively?

Use TestClient from FastAPI for unit and integration tests, mock external dependencies, write contract tests against OpenAPI schemas, and include load tests in CI to catch performance regressions early.

Disclaimer

This article is for educational purposes only. It provides technical and operational guidance for building APIs with FastAPI and does not constitute professional or financial advice.

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