Key Takeaways:
-It might not be easy to get into cryptocurrency, but the more you know about the industry as a whole, the more likely you are to enjoy it and look into interesting projects.
-Don’t put your money at risk by not taking care of what not to do. Before you put money into something, do your own research and find out the facts. When you do, start small and try not to have FOMO. Safe storage gives you peace of mind. Remember that you will lose your cryptocurrency if you lose your keys. Be careful and enjoy yourself! The space is fun and full of possibilities. If you keep an open mind, you might find some pretty cool things in the space.
First time here? Learn how to deal with crypto and you’ll sleep like a baby.
So you’re thinking about joining the crazy world of cryptocurrencies. You heard some friends talking about it, did some research, and found out that the digital currency market isn’t as simple as ABC and 123. In fact, it’s pretty complicated, since there are more than 8000 projects. BUT you’re still curious about the business and think you might want to try it out.
We can take the mystery out of crypto and make it a little less scary to get into the market, though. So, where to begin?
You can feel confident about crypto if you know what to do and what to avoid.
Before we get to what you should do, here’s a quick review of the things we talked about in this article that you shouldn’t do:
1. Don’t buy or sell based on how volatile the market is. Even though the markets will always change, your cryptocurrency doesn’t have to.
2. Don’t pay too much attention to rumors and what “experts” say about the price. Instead, pay attention to the basics and other key metrics of a project.
3. Don’t follow popular people on TikTok and Instagram without first checking their credentials. Confidence doesn’t mean you know how the market works.
4. Don’t spend money you can’t afford to lose, and don’t go into debt to invest in something. It’s a risky move that could get you in trouble.
Okay, that’s a quick lesson in what not to do. Here’s what you should do if you want to get into the crypto industry:
• Do your own research (DYOR). This is the most important piece of advice about how to handle cryptocurrency. Before you put your money into a project that interests you, learn as much as you can about it. Do your own research to find out the important details and look at important things like:
• The project’s team, founders, and key investors, and learn about their reputations. If it seems like something isn’t quite right, you should be careful.
• How the project will be used. If a project has a clear and useful purpose, it has a better chance of succeeding than if its main marketing goal is to make money and make money.
• Read reviews and find out what people think about a project. People in the cryptocurrency community, especially those who have been around long enough to know what’s going on, will be able to tell you about a project and tell you if it’s worth your time and money.
• Don’t worry about missing out or living for today; instead, use the dollar-cost-average method.
• It might be tempting to spend a lot of money on a cryptocurrency because everyone else is doing it (the classic “fear of missing out” strategy) or to buy in when a project is “pumping,” but that’s not your best bet. Most of the time, the market will correct itself, and if you jump in too quickly, you risk losing money.Instead of going along with the crowd and (literally) buying into the hype, choose a safer strategy that will help you build up small amounts over time. It’s like snacking instead of going on a binge. Dollar-cost averaging, or DCA, is a safer strategy in which you invest the same amount of money over time instead of all at once. So, you can enjoy small wins without putting all of your money at risk in one move.
• Don’t put all of your cryptocurrency hopes into one project.
• People disagree about whether it’s better to focus on one coin or spread out your money in cryptocurrency. Some people say you should focus on one cryptocurrency to get the most out of it, but there’s a pretty big problem with this: It makes the risk even bigger if the project fails. Instead of putting all of your attention on just one cryptocurrency, do some research to find a good mix. It’s a little like the Goldilocks method: Find the sweet spot between focusing too much and spreading yourself too thin. So, if one project doesn’t do well, it won’t hurt your entire crypto portfolio as much.
• Keep your crypto in a safe place:
Risky storage is one of the biggest problems we’ve seen with people who are new to crypto. Remember that the safest way to store your crypto is in a safe place. Your cryptocurrency is kept in a digital wallet. This is similar to how you keep your bank card or cash in a physical wallet.
This can be done online (called “hot” storage) or offline (“cold”) storage. Cold storage is not connected to the internet, like a Ledger wallet, so it is less likely to be hacked or stolen. If you take good care of your wallet, your crypto assets will be the safest and have the best chance of succeeding.
• Approach crypto, embrace space and learn on the way:
If you want to learn more about how to approach space, the best way to do so is to put your toes in the water. Make sure you understand the risks, stay away from threats that aren’t necessary, and be careful about where you put your trust and money.
Finally, keep in mind that the market is full of chances and possibilities. Go in slowly and look around with a good amount of care. The more you learn, the more you’ll see how exciting this space is!