Tag: digital coin

Cryptocurrency is proving to be an exciting investment opportunity. The number of crypto traders and crypto investors has increased in recent years. It is obvious; people are making money via cryptocurrency. You too can join the bandwagon – it is not too late. With proper guidance, you can avoid scammers and know when/what/how/who to invest. Can’t wait to buy your first Bitcoin but don’t know how to go about it? In this article, I will show you eleven things to know before investing in the cryptocurrency market even if you are a novice. In case you don’t know what cryptocurrency is all about, I have written a comprehensive guide on what is cryptocurrency – introduction to cryptocurrency. Click here to get access. 1. Answer this question genuinely: Is cryptocurrency good for you? Is digital currency too good to be true? There are so many reviews on cryptocurrency; some are true while others are false. Before investing; ask yourself why do I want to invest in cryptocurrency? Are you just following the trend or do you know what you are doing? The truth is that cryptocurrency has turned so many people into millionaires and so many people have gone broke thanks to cryptocurrency too. What went wrong? You may wonder. A lot of people invest carelessly; others are too greedy. Some fall victim to FOMO (the fear of missing out) and lose all of their investment. All you need to know is that cryptocurrency is extremely volatile; i.e. the price of the asset can increase and decrease at any time. This is because cryptocurrency isn’t regulated or controlled by any government. You want to think carefully before making your first crypto investment. And, yes. Digital currencies are real and people have made fortunes out of them. Are you gunning to be part of these people? Click here to read the best cryptocurrencies to invest in 2022. 2. Explore different exchange platforms Cryptocurrencies can be used to buy goods/services or to purchase other cryptocurrencies [altcoins]. It is called crypto trading. This exchange can even be performed using fiat currency on cryptocurrency exchange platforms. There are thousands of cryptocurrency exchange platforms out there; most are easy-to-use and secure while others are scammers. Before investing in any exchange platform, you want to ensure they are legitimate and authentic. How do you know the right exchange platform to invest in? Look out for: resilient security measures trading fee date of establishment accessibility & reliability strong level of liquidity a wide range of crypto offerings online reviews the type of storage being offers 3. Beware of scammers Just as you are eager to invest in digital coins, a large number of people are also eager to zap your investment. They are everywhere; in your email, on social media, name it. A lot of investors have lost billions to exit scams and Ponzi schemes. You don’t want to have w similar experience. One way to detect scammers is that they promise claims that are too good to be true. Imagine a company promising to give you a huge bonus [in form of coins] once they sign up. I’m not saying bonuses are bad but be on the lookout for exaggerated claims. I have written a short guide on how to detect and avoid crypto scams – click here to get access. 4. Know which coin(s) to invest in There are thousands of digital coins out there and this makes it difficult for beginners to choose which coin, to begin with. Investing in digital currencies isn’t by how popular a coin is. In fact, the most popular coins tend to be highly volatile than the least popular coins. The idea is to know when to invest and when to cash out. Market volatility can sink your investment within a few hours. I recommend that you begin with more stable coins before diversifying into other coins. By so doing, you will accumulate some experience on what the cryptocurrency market is all about. You can get some fresh ideas from our top cryptocurrencies to invest in 2022. 5. Build an investment strategy Don’t just invest blindly. The most successful investors have a blueprint for their every investment. You should have a plan for your cryptocurrency assets. You can start by: setting a limit order on how many coins you want to purchase how many coins do you want to begin with do you wish to automatically sell your coin when prices hit a certain level? Don’t know how to go about this, you can copy patterns from seasoned crypto traders. 6. Invest in multiple digital assets I recommended that you begin with a more stable coin before diversifying into other digital currencies. This is important to minimize overall risk and maximize your potential return. There are tons of coins and tokens where you can spread your tent. Make your research and diversify accordingly. 7. Learn from experts New investors may find it challenging at the beginning but with the help of an expert, you can make informed decisions. During the first few months, beginners will be faced with what decisions to/not to make. With an expert around, shared knowledge and trading practices can help you avoid costly mistakes. That been said, learning from experts with enormous experience in the crypto market can be an added advantage for newbies. 8. Understand the factors that influence pricing The rise and fall of digital coins are influenced by certain factors. Just as you have it in the gold market, demand & supply, mining, quest for zero-carbon emission, energy consumption, etc. can play a huge role. As a potential investor, you want to get acquainted with current trends before your first investment. 9. Timing is crucial The likes of Bitcoin and Ethereum are prone to extreme volatility than other coins. They can fluctuate without notice. Timing is the ultimate formula for successful investors. They observe when the price of a coin falls and they try to buy in a larger unit. When the price increases, they sell and make a profit. The process is called “buying the dip”. 10. Prepare for volatility Cryptocurrencies are highly volatile. A potential investor will be better guided when he/she understands the volatility concept. This concept simply means that digital currencies are not controlled or regulated by the bank or a central government. A dip in the price cannot be cushioned and a price rise cannot be controlled. Learn this and minimize your chances of losing out. No one can accurately predict the market price for any cryptocurrency. In the cryptocurrency world, patience can be rewarding. 11. Protect your private keys Private Keys can give anyone access to your wallet. Just as you’d keep your passwords safe, you need to keep your private keys safe. A hardware wallet is one of the best ways to protect your private keys. WRAPPING UP Whether you are an investor or not, it doesn’t erase the fact that cryptocurrency has come to stay. Even if you have not invested in Bitcoin or other cryptocurrencies before, you can still join the bandwagon. It is never too late for any investment, especially when it involves cryptocurrencies. Just learn these crucial tips and stay updated with market shifts. Are you a crypto investor? Was this post helpful to you? Do you have other tips to help beginners? Kindly share with us in the comment section below. We hope you find this article helpful. You may also click here to see other amazing tips on how to succeed as a freelancer.

Tag: digital coin

11 Things To Know Before Investing In Cryptocurrency

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