As an amateur crypto investor, about to take your first step along the pathway of the blockchain, you are probably asking yourself a few questions.
Is investing in cryptocurrency the best idea? Is it going to become more mainstream? Did the crypto bubble burst? And what are the most important tips to succeed in an ever-evolving investment space?
In this article, we will be sharing seven necessary tips to assist you on your crypto journey:
Channel out the noise
Several naysayers in the financial and media sectors will preach that cryptocurrency is an over-hyped, fad speculation, or even a scheme. However, an increasing population embraces the practical applications and financial prospects of cryptocurrency assets. Both contradicting sides can make a lot of noise. To actually succeed as a crypto Investor, you have to invest in what you believe in while neglecting all the noise.
Be Prepared for Anything
The constant volatility in the cryptocurrency market cannot be overlooked. Experienced crypto investors are quite familiar with huge price fluctuations that aren't found in conventional markets. By being mentally prepared for these occasionally terrifying and unfavorable investment performances, an intelligent cryptocurrency investor can act logically and not emotionally.
Avoid a Poor Investment Strategy
A common mistake made by amateur cryptocurrency investors is that they join what is referred to as a "pump and dump" group. These are social media 'gurus' and communities that recommend investment strategies regarding certain coins. As an investor, it is wise to avoid these types of communities. Unless there's a proven investment strategy in place, recklessly following such tips is one of the quickest ways of losing your money.
In this digital age, there's no reason to invest in any cryptocurrency without having a basic understanding of the asset. Most coins have available whitepapers online. From the increasingly traded to the most hidden coins, there are resources to aid individuals to improve their knowledge of possible future investments. Ensure you do your best to learn more before making any investments. For instance, if you're considering making an investment in Ethereum, one of the things you need to know is the value of 1 ETH to USD. That way, you can have a proper idea of how much your base investment would be worth.
Similar to how financial experts suggest taking positions in numerous kinds of stocks, diversification is vital also for any healthy crypto portfolio. After doing your research, take the chance to invest in numerous coins.
Opt for a Different Personal Email
A cryptocurrency investor is at risk of exposure to a hack or data breach if they use a normal email account. To avoid this, you should create a completely different email for trading alone, especially with an included two-factor authorisation password security. Ensure that two-factor authentication is used for every service that allows it. For instance, both your exchange account and your email account should need two-factor authentication to access.
Understand the Benefits of Both Hot and Cold Wallets
Your cryptocurrency can be safeguarded via an online "hot" or offline "cold" wallet. Hot wallets are a desirable option for amateur cryptocurrency investors because of their easy accessibility. However, hot wallets are more prone to data breaches, while on the other hand, cold wallets cannot be easily hacked. Do your research and find out which works best for you.
Hopefully, these seven tips will give you a more stable footing on your crypto journey. Be well prepared, as the journey could be a rocky one.