As a beginner cryptocurrency investor, you’ve undoubtedly found yourself asking several questions as you kick off your shoes and take your first steps down the Path of The Blockchain.
You’ve probably heard the stories of those who struck it rich, or that one friend who told you about how they made thousands of dollars in a matter of days. But, after asking “What do I need to know to get started or be successful?”
You may have given up on taking your first steps into the field of crypto investment after not receiving a straight answer.
If you’re reading this article, then you probably already know that the cryptocurrency market is taking off – and, if you’re like over 5 million other people who’ve jumped onto this investment opportunity over the past couple of years – then you know exactly what I’m talking about. Today I will cover 5 crucial tips which will cover why it’s easier to succeed with crypto than you might think.
1.Reliable Source of News: Finding reliable sources for your information is essential because there are thousands of online reviews and forums out there that can provide the wrong advice and be very confusing. If you have no guide or mentor, then this information overload can prevent you from taking action and finding success. Sites like Coindesk, The Top Coins, Coin Shark provide updated news for all cryptocurrencies.
- Prepare for volatility: As cryptocurrency is a very volatile market and this is exactly why many people can be discouraged from investing in it. Most days cryptocurrencies will increase or decrease by more than 20% which can mean a lot of money depending on the amount you’re investing. This is where knowing how to manage your emotions when the going gets tough is essential. You need to stay calm, rational and up to date with the trend to understand the market. Though it is not something you can fully master initially as even the most veteran crypto traders and owners have struggled to master the trends of these virtual currencies, so don’t be surprised if you find yourself in the same boat someday.
- Look for Multiple Coin Investment: To succeed in the crypto currency market, it is a better idea to avoid investing exclusively in one currency. Though the biggest gain potential exists in just one coin, by expanding your portfolio you can minimize and mitigate risks associated with a single coin investment. Investing only a few coins allows you to stay updated for every aspect of the cryptocurrencies that provide more profitable opportunities.
Bitcoins are simply one part of the story when it comes to cryptocurrencies. You really shouldn’t put all your eggs in one basket, you can lose more than you gain. Study which coins are thriving, as well as the most commonly utilized scenarios from which you might profit. It will be up to you to decide how you will use your cryptocurrency, so choose your assets carefully.
- Learn about hot and cold wallets: This is a short detail that will save you some big headaches down the road. Cold wallets generate private keys on an offline computer so you won’t need to worry about your assets being hacked from an outside source. On the other hand, hot wallets are stored online and can be accessed more frequently for convenience and ease of usage.
The convenience of using hot offline wallets will be more advantageous and flexible if you’re a beginner. Cold wallets, on the other hand, offer more protection against hackers and other criminals. As part of your asset diversification strategy, learn to use both types of wallets.
5. Use alternative personal email: You may have heard that crypto currency exchanges are great for buying and selling crypto, but they’re also a potential haven for hackers. Crypto currency exchanges get hacked from time to time because these websites tend to be favorite targets of phishing attacks . If you were a victim of this type of fraud, your identity may be stolen or exposed so it’s always better to use an alternative dedicated personal email address integrated with 2FA (two-factor authentication) to avoid any sort of negative circumstances.
Bonus Tip: Expecting the unexpected thing:
It is not a matter of surprise to see substantial volatility in the crypto market . Sometimes it could even be possible to lose on a deal that seems pretty good. Experienced crypto traders even face huge price swings in the market. So by being mentally prepared for unfavorable or occasional price drop can be helpful to deal with such consequences rationally instead of emotionally.
To conclude the article: It will take time to master the world of cryptocurrencies, so don’t put too much pressure on yourself to become an expert right away. Finding out how to maximize the potential of your virtual coins—whether you want to utilize it for trading or daily transactions—takes time, experience, and ongoing learning, just like any other talent.
It will take time to master the world of cryptocurrencies, so don’t put too much pressure on yourself to become an expert right away. Finding out how to maximize the potential of your virtual coins—whether you want to utilize it for trading or daily transactions—takes time, experience, and ongoing learning, just like any other talent.