Things to Know Before Investing in Cryptocurrency
Are you interested in purchasing Bitcoin? Or perhaps, you seek how to buy Bitcoin Cash, Bitcoin Gold, Ethereum, Dogecoin, and other altcoins. Is the desire in place but the expertise lacking? You need not go elsewhere; our article will answer all of your burning questions.
We know that you’re probably seeking to diversify your portfolio and invest in cryptocurrency. Even if you missed out on investing in Bitcoin in its early years before it spiked to the mid 60ks, it’s currently hovering in. You can still make a lot of money via investing in altcoins.
At this point, you should be seeking serious expert advice and opinion if you’re equally serious about your investment returns. It is all too easy to be lured by scammers or invest in the wrong tokens if you are poorly educated on the subject.
Luckily, our article takes all of this into consideration. Read on and learn about six expert tips for cryptocurrency investing.
Top Six Crypto Investment Tips
So you have a crypto wallet and an account on a crypto exchange platform. You have your capital sitting safely in your account and are pondering on the best option for you in the cryptocurrency market.
Your mind flits between Bitcoin, Bitcoin Cash, Dogecoin, and Safemoon, analyzing the pros and cons of each. Well, here is all you have to do:
1. Consider the Timing
One main feature of cryptocurrency is volatility. Whether you’re seeking to buy Bitcoin Cash or start with some obscure coin, you must consider the timing.
The volatility of digital assets is almost legendary, and the wild fluctuations of the cryptocurrency market can be demoralizing for those who are not experienced enough. The best time to purchase an altcoin is when the price is low; hence the popular phrase buy the dip.
2. Beware of Scammers
It is common to find ads on social media or concentrated speculation involving the potentials of some obscure cryptocurrency token. Even if it isn’t about strange tokens, it could be speculation over the predicted rise of Bitcoin or popular altcoins.
Exit scams and Ponzi schemes are real! You should beware of them and do adequate, thorough research before putting your money on any coin.
3. Don’t Invest Your Life Savings
A lot of people have gone bankrupt from investing money meant for important things on cryptocurrency. Inherently, crypto investment is a risk, as there is no real guarantee of the rise or spike of any coin. Everything is pure speculation.
In the face of this, some clear events may or may not indicate the direction where crypto will fall. Speculation is a huge factor. Nevertheless, it would be unwise to place critical funds in crypto holdings, especially for starters.
Instead, you would be better served by investing excess money in crypto. Pay your bills. Sort out your vitals. When you have excess, then you can begin to invest.
4. Learn the ABC of the Blockchain
It would be unwise to delve into the murky waters of cryptocurrency investing without mastering certain key terms in the industry.
Smart contract, Peer-to-Peer, Block, Cold and Hard Wallet, Decentralized Finance, Decentralised Apps, hard fork, and gas are terms that should not be unfamiliar to you if you are serious about investing in cryptocurrency.
5. Do ICO research
Initial Coin Offerings (ICOs) were quite popular about five years ago. They were avenues where new companies offered new crypto tokens for sale to the general public for the first time.
Going the ICO route can be quite risky today. However, you can avoid the risks by doing thorough research of the coin involved. A good place to start would be the white papers of the crypto tokens.
6. Choose a Reputable Crypto Exchange Platform
You should ensure to choose a cryptocurrency exchange that has strong liquidity levels, reliability, resilient security, and various cryptocurrency assets.
Ensure to visit the best websites to learn more about the best crypto exchanges to trade-in. On these crypto exchanges, you will learn more about the likes of Bitcoin Gold, Bitcoin Cash, Safemoon, and other coins.
You cannot be overly hasty where cryptocurrency investment is concerned. Even if you have a lot of people raving about certain coins, promising massive returns with little investment and some patience, it still pays to be careful.
Cryptocurrencies are inherently volatile – the rise and fall at a moment’s notice. If you are not well placed against a poorly-timed plunge, bankruptcy may be staring you in the face. Exercise caution and conduct adequate research!