Crypto Investing 101: How To Invest In Cryptocurrencies 0 240

In 2009, the first cryptocurrency was introduced and it was something that no one believed in. Fast forward 10 years, and it has become one of the most valuable assets for investments. Cryptocurrency investments are a great way to increase your savings through major profits. It is an asset that has the quickest turnover rates. This means that the highly volatile nature of the cryptocurrency markets can bring in instant profits as well as losses to investors. If you have been drawn to the world of cryptocurrency investments due to the recent stir in the market values, then you should continue reading this article.

I will be taking you through the first steps that you need to complete in order to get the right start in cryptocurrency trading.

The First Steps For Cryptocurrency Investments

Choose A Platform

When you think about buying cryptocurrencies for investments, where do you think you can buy them from? Cryptocurrencies are digital assets which means that they don’t have a physical form. So, you cannot go to a bank or a trading company and buy solid cryptocurrency coins. So, where do you buy them from? To purchase cryptocurrencies, you need to sign up with a cryptocurrency broker or an exchange. These are online trading firms that provide people access to the financial markets.

You will come across a lot of options to choose from. It is important that you are very careful with your choice because there are a lot of unregulated firms and scams on the internet as well. So, choose a platform with great consideration and after thorough research.

Understand The Volatility

Cryptocurrencies are extremely volatile assets which means that the investment risk is also higher than the other asset. The crypto market values change quickly and on a large scale whenever something major happens in the financial market. This change can be affiliated with political movements, major investments by financial heavyweights, and even from the words of influential people. So, when you are investing in cryptocurrencies, you should be prepared for the unexpected fluctuations in the market value of the asset.

Diversify Your Portfolio

Speaking of risks, while there is no way to predict what will happen to the prices of the asset, it is possible to reduce the impact of the blow. The cryptocurrency market values can drop or increase at any time. You cannot always expect the numbers to stay in positive digits which is it is important to take steps that will ensure minimum loss if the market value drops. This can be done by diversifying your investment portfolio.

Invest in different cryptocurrencies instead of using your entire investment fund to buy a single asset. This way, if the market value of one of the asset drops, you will not lose all your money to it. The other investments will be able to help you maintain sustainability until the asset rises back up. It is also important to check the background of uncommon cryptocurrencies before deciding to invest in them for diversification. This is because sometimes you may face a bigger loss by investing in fake crypto than you would by losing money to fluctuating market values.

Use Cryptocurrency Wallets

Cryptocurrency brokers and exchanges allow you to buy assets directly from the stock market. They also provide ways of storing your cryptos if you are interested in long-term investments. However, it is highly recommended that you use cryptocurrency wallets for storing your cryptos. Learn about different types of cryptocurrency wallets and their types and use them to store your cryptos in a more secure way. As a beginner, you should use hot wallets as they will be much easier to manage.

Final Thoughts

These few steps can ensure that you start your cryptocurrency trading journey on the right foot. Just remember these few things before you venture into the field to make sure that you don’t cause yourself any damage in terms of money as well as security. Many newcomers fail to get the result that they want because, in the rush of getting things started, they miss the essential steps. This cryptocurrency guide is a quick yet proven way of making sure that you start your career as a crypto trader in the right and secure way.

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What Should You Know About Cryptocurrency Scams 0 166

Unlike physical cash or coin, cryptocurrency or digital currency exists electronically. There is usually no tangible bill or coins unless you employ a service, such as crypto exchange, to cash in your digital currency for a physical token without any intermediary. You can get cryptocurrency via an online brokerage service or exchange platform.
Some people, called miners, earn digital currency through crypto mining. It is a complex process, which requires expensive and advanced hardware to solve complicated puzzles and mathematical algorithms.

If you want to invest or use digital currency, it becomes necessary to understand how it is not the same as cash or other payment methods. Plus, it is also crucial to identify cryptocurrency scams or compromised crypto accounts.

Cryptocurrency Scams

The unregulated and comparatively new cryptocurrency world attracts fraudsters trying to execute possible crypto scams. Investors and traders need to make sure they have the safest possible journey throughout. For this, they need to know what cryptocurrency scams are and how they can avoid them.
Remember, not every failed cryptocurrency is a scam. You can even lose your hard-earned cash if a successful digital coin does not do well because of natural causes. Some cryptocurrencies lack the design to fleece individuals, especially when a coin enthusiastically goes through social media promotion. If a virtual currency attracts you, make sure you be circumspect and do your homework in the form of thorough research.

Types of Cryptocurrency Scams

While cryptocurrency scammers continue to try new ideas, some of the known cons include the following.

1. Phony Investment Schemes

Some scammers introduce bogus investment schemes aiming to cheat people. They promise users massive returns against their investments. Some cryptocurrency scams also claim to have celebrities and successful traders endorsing the plans to attract innocent people.

2. Fake Cryptocurrency Exchanges

These cryptocurrency exchanges may look like legitimate and genuine companies, though they tend to go away overnight. Of course, they do not disappear without taking their customers’ funds with them.

3. Ponzi Schemes

These schemes promise the user enormous gain upon their involvement. Ponzi schemes ask users to recruit their friends, colleagues, family, and familiars to register with them. The owner of such a scheme takes money from new members and uses it to pay off old members. Ponzi schemes usually collapse when they do not find new members to meet their payment requirements.

4. Exit Scams

Exit scams are when a company asks the consumer to pay for a product it hasn’t delivered. For cryptocurrency scams, it often pretends to be a company that raises money through an ICO or initial coin offering. This exit scam shuts down when the ICO is in the process or right after it concludes.

5. Right to recruit

Some schemes ask you to pay in digital coins, giving them the right to recruit people on your behalf. They offer you massive rewards paid in digital currency for recruiting people. The more digital currency you give them, the more they guarantee you will make. But these are fake promises and guarantees, which ultimately lead you toward the loss of money.

Spotting a Cryptocurrency Scam

It is vital to spot a potential scam to have a successful and scam-free journey throughout the crypto world. Consider keeping a level head for your investments. If a scheme, an offer, or a company sounds too good to be true, it could be a crypto scam. So be careful and double-check the things.
If you are getting attracted to a social media account, claiming to have a famous person endorsing its product, make sure to find out whether it is true or not. Similarly, if you come across a website or a document full of mistakes or typos, you are most probably facing a crypto scam. Make sure you research the crypto product you are interested in and review any complaints against it.

Essential Things to Do Before Trading Cryptocurrency 0 162

Learning how to trade cryptocurrencies is undoubtedly fun and anyone can learn it. You can begin without having to spend a lot of money, but once you have some wins under your belt, it becomes easy to justify making bigger investments. However, you shouldn’t forget that while you can make money with cryptocurrencies, caution should still be exercised. This is particularly true when you are new to the world of cryptocurrency and are just starting out. So, what should you do? Here are some of the essential things to do:

Secure your email address

You have to be your own custodian when you are trading cryptocurrencies. This means that you should keep your accounts secure and this begins with your email address. It is a very vulnerable place because if your account is compromised, then all will be lost because the cybercriminal will be able to access all exchange accounts you may have. It is best to use a strong and unique password that you don’t use elsewhere. You should also enable 2FA authentication for your email and skip SMS-based 2FA because this is easily stolen.

Look for a reputable exchange

Not all exchanges are the same. You cannot trust just anyone with your funds. Any crypto veteran can tell you about the horrors of unprofessional and poorly run exchanges. A number of these made off with clients’ funds and they never got them back. You undoubtedly want to avoid such a scenario and this can only happen when you find a well-established platform for your trading. It should be trustworthy and shouldn’t hide its team.

You can check reviews, or find forums where people are talking about crypto exchanges. These users will definitely inform you if anything shady is going on with a particular platform you are interested in.

Know about proper wallet safety procedures

Most people who keep their coins on the exchange end up losing them. When trading, you should only keep those coins on the exchange that you plan to use and transfer everything else to a private wallet, or a safer cold wallet. Take steps to protect this wallet and never share your private keys or recovery phrases with anyone.

Learn about technical and fundamental analysis

You don’t have to be an expert, but you should know the basics of both technical and fundamental analysis. Take some time to understand how the market works and what you can get from the asset you want to trade. Sure, people do make money via assets they don’t plan to hold, but they know when to exit a trade and you should know the same.

Have reasonable goals

If your aim is to become a millionaire within a week of crypto trading, then it is time to wake up from this dream. Always establish reasonable goals and consider losses a learning experience. While it is acceptable to have a goal of making a certain profit from an investment, you should bear in mind that traders make their money via small price bumps instead of big ones.

Be careful with what you don’t know

While learning about technical and fundamental analysis is important, you should only use them within your own abilities. It is best to begin with the basics and not try to use any complicated methods that you don’t understand. If you feel lost, then you can find numerous tutorials on blogs and YouTube that can assist you in understanding the various aspects of trading.

Listen to others’ advice with a grain of salt

Lots of people will want to give you advice when it comes to cryptocurrency, but always take it with a grain of salt. You should do your own research and make judgments yourself about when to buy and when to sell. There is no harm in listening to outside opinions, but only follow them after doing some verification.

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