Do you remember the first crypto exchange account that you opened up ? I do , and reflecting now realize how clueless I really was in 2019 !
If you are thinking about investing in cryptocurrency for the first time you may be tempted to go all in . Look before you leap and be sure to do your due diligence. There are hundreds of other articles for crypto newbies here on PublishOx and I would encourage you to read many of them as well as resources available online.
Understand the risks !
Cryptocurrency is a high risk investment and while there are times the market can trade sideways for weeks or months there can also be high volatility compressed into a short period of time. Do not invest more than you can afford to lose.
DYOR ( Do Your Own Research )
Any type of investment requires research before buying in. All too many people FOMO in and then start to do their research at the first sign of trouble. Have a basic understanding of how a blockchain and cryptocurrency works. Join an online community or a forum , take the time to read the ” white paper ” of a particular crypto you are considering investing in.
Focus on the long term
Many view crypto as a quick way to get rich. Unfortunately, many beginners get caught up in reading the charts and prices of crypto when they should be focusing on a long-term investment plan instead. If your goal is to consistently generate wealth so you can retire comfortably, then you should look at an investment timeline of at least 10 or more years.
DCA ( Dollar Cost Average )
You don’t need to be consumed with cryptocurrency to be a crypto investor. Markets fluctuate day to day and and the dollar cost averaging method will keep you from obsessing over prices. Whether you DCA daily , weekly or monthly have a plan and the discipline to stick to the plan and you will be better for it.
Selecting a cryptocurrency exchange
Some of the considerations when selecting an exchange are the number of coins you can trade , trading fees , security and reputation. Some exchanges have a ” Learn to Earn ” program where you earn small amounts of crypto for watching a tutorial and taking a quiz. I always recommend Coinbase for beginners and have included an affiliate link below.
https://medium.com/coinmonks/coinbase-the-best-crypto-platform-for-beginners-219fcbf350d4
Not your keys not your crypto
This term simply means that if you do not have control of your private keys then you do not actually ” own ” your crypto. Using a hardware wallet is widely accepted as the most secure method for storing cryptocurrency. This keeps your private keys offline and inaccessible to anyone except the holder of specific access codes.
Be wary of crypto deals that seem too good to be true
Don’t trust people who promise you can quickly and easily make money in the crypto markets. If someone contacts you through social media or dating sites and offers to help you invest in crypto it is a scam ! Scammers will do everything they can to appeal to your sense of greed and try to win your trust. Don’t fall for it !
In summary , there are many free resources available to those who are considering entering the crypto sphere and just like any other investment vehicle DYOR, understand the basics and know your risk tolerance .
