10 Best Tips for Investing in Crypto for Beginners

 

AUTHOR: Vuk Jovanovic

Investing money and trading can be an excellent chance to earn income. But that doesn’t mean you will still accumulate and make money. Trading, especially cryptocurrencies, is a very volatile and unpredictable market. Learning some general and basic stuff will help you not to lose all your investments at the start.

1. Do Your Research

Investing money and trading can be an excellent chance to earn income. But that doesn’t mean you will still accumulate and make money. According to all the users, trading, especially cryptocurrencies, is a very volatile and unpredictable market.
Learning some general and basic stuff will help you not to lose all your investments at the start.

2. Learn What to Research

Many people advise that you should start by learning how Cryptocurrencies work. You could make a universal list where the first steps are:

  • What is Bitcoin, and what are Cryptocurrencies 
  • How to research a specific Crypto coin, what is the market cap, reading the white paper and standard. 
  • Where do you store them and buy them? 
  • How do they work? What is High, what is low, what is Bull, etc.

According to some users and traders, It would be best if you soak up as much information as possible. Having a large base of knowledge can only help you.

3. Don’t Share Your Plans and Investments

When you start trading, anything, not only Cryptocurrencies, what you do and the much you lose or make should be kept secret. Only share your thoughts and plans with people who are your partners and who are maybe working with you. Anything else can represent a possible threat or obstacle to work.

4. Set Yourself a Timeframe

Some individuals also commented that you should always set a timeframe for investing. Are you thinking long-term or short-term? Have a plan, how much you want to gain and take profit, and your limit for losing. 

Do you have the time to dedicate to day trading, which is Short-term and aggressive trading, which combines more risk in the hope of making more profit, or do you want to take a slower but safer approach which is the best option if you want to stay in this market? Be prepared to wait; it’s the only way.

5. Keep It off Exchanges

Whatever you buy, and especially if you buy it in large quantities. Store the Crypto in wallets. Do not store them on the Exchanges! Take your time and research what Crypto wallets are, how they work, and how to use them properly. The best option is to use a Hardware Wallet. It allows you to have total custody over your money and cryptocurrencies. Being safe in the crypto ecosystem is the most important thing. 

6. Use Only 1-5% Of Your Money

How much money you invest in Crypto depends on your preferences. According to many users, you should spend at most the equivalent of 1-5% of your assets. The way you should think about the money you invest is that you won’t use it and see it for a long time. That’s when you choose what you can afford to spend or even possibly lose so that you can get a profit.

7. Do Not Overextend With Investing

You should probably have 2-5 coins in your wallet, only buy and try to keep what is necessary because you will lose track cause of a large number of investments. Every coin is individual, with its characteristics, market, prize, and much more. The more diverse your Cryptocurrencies are, the more work you will have to do to research and keep track of everything.

8. Invest in Larger Coins, Bitcoins, Etc.

The Crypto Market isn’t in the best shape right now; most users advise that you only focus on buying large, known coins.

The number one is Bitcoin; it’s the most recommendable and safest option. But unfortunately, it’s also the most expensive one. You will need some time and money if you plan to make a fair profit from investing. Also, people claim that you should pay less attention to small coins and tokens because they are probably not worth the time and money.

9. Don’t Panic Sell Crypto

When the time comes, do not panic. Be prepared to get hit and lose 10,15,30 percent of your investment. So please don’t put yourself in a situation where you start to panic sell everything and lose a lot more than you would just by leaving it like that. Only invest what you are prepared to lose in the short term. 

10. Never Click on Messages and Dm’s

Almost 99% of the time, when you see something too good to be true, it isn’t. According to all the traders and people, when you get a message or DM that is about Crypto, people that offer their services or something similar. Just ignore it, never share information and stick to your instinct; like in every other business, scams and thieves are always ready to rip you to zero.

This article was brought to you by this thread.

This originally appeared on AmmarRangwala.com.

 

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Ammar has started several online businesses and is a blogger who loves providing quality content to help others. He is involved with affiliate marketing, domain names, NFTs, and cryptocurrencies. Check out my blog if you want to learn more about these areas and business in general.

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