Cryptocurrency has come a long way in the last few years. Formerly for the sole use of technology enthusiasts, digital currencies are now finding ways to connect with people of all demographics. Once the masses are embracing the realm of the tech-savvy, now digital currencies.
Over the last few years, the value of Bitcoin and other cryptocurrencies has skyrocketed. And while this has made some people incredibly wealthy, others have lost everything. So, how do you stay on the right side of this curve?
Do your research
Investing in cryptocurrency is not for the faint of heart, so you have to do proper research before investing. As with any investment, it’s necessary to know what to expect. Before investing, understand what cryptocurrencies are, how they are created, and the process for getting one. Cryptos, such as Bitcoin or Ethereum, is a type of digital money that exists only online and is not regulated by a central bank. They are created through a process called mining, which verifies transactions by solving complex mathematical problems. The reward for solving these problems is bitcoins or another cryptocurrency.
Don’t invest more than you can afford to lose
Ask anyone, and they will tell you that cryptocurrency is a risky investment. People have a high tendency to lose money when they invest in cryptocurrency. However, investing in cryptocurrencies is a legitimate way of making money.
Cryptocurrency and Bitcoin, in particular, is a controversial topic and one that’s hard to pin down, especially for beginners. But, what shouldn’t be controversial is the investment itself; if you put the money you can’t afford to throw away on investment, that’s called gambling. And, besides, if you’re investing money, you can’t afford to throw it away.
Only invest in cryptocurrencies you believe in
Cryptocurrency is more popular than ever, and for a good reason: it’s one of the best investment opportunities in years. However, investing in cryptocurrencies has its own set of challenges.
As traders and enthusiasts, Traders know first-hand how exciting it is to own cryptocurrencies like Bitcoin and Ethereum and to invest in blockchain projects. While Bitcoin and Ethereum remain very popular, many other cryptocurrencies are gaining traction. Only invest in crypto that you think will last and survive on the market. Do proper research about crypto and invest a little at first to avoid being scammed.
Don’t panic if the price drops – stay calm and don’t sell low.
Cryptocurrency offers a brand-new investment experience, making it somewhat hard to grasp fully. The widespread popularity of cryptocurrency is based on the idea that it is a currency that behaves like cash. Also, cryptocurrency can be used for exchanging goods and services, online payments, investments, etc. The market can be bearish and bullish sometimes, it is essential to know buying and selling times.
Keep your coins safe – use a secure wallet and never give out your private key.
Protecting your digital currency is as essential as your money. Cryptocurrencies are extremely secure and anonymous, so hackers and identity thieves are targeting them. But careless mistakes by newbies also invite danger. The safest way to protect your digital currency is to use a secure wallet and never give out your private keys to anyone.
Don’t store all your coins on an exchange
With cryptocurrency becoming so popular, there’s a ton of information out there. But, it’s easy to get overwhelmed and say to yourself, well, I don’t know HOW to do this. And that’s understandable.
Crypto is taking over the world! The world’s most famous cryptocurrency, Bitcoin, is now worth over USD 10,000. While Bitcoin may be the most popular crypto, hundreds of others are on the market. However, if you have decided to invest in crypto, you need to know the risks associated with
Use a strong password and 2FA
Use a strong password and 2FA. Log in with a username and password if you trade on an exchange like Coinbase or Binance. If you want to trade privately in your wallet, use a passphrase (long and difficult) and 2FA. If you need to use a password manager, use 1Password or LastPass. If you store funds on a hardware wallet, use a passphrase and 2FA.
Crypto investing can be a great way to earn some extra cash. However, it can be complicated at first. It’s easy to get subjugated by all the options! Have fun and keep researching the market. Once you have done this, you’ll be a successful crypto investor/trader.