Investing in cryptocurrencies is a tough job these days. With so many conflicting opinions on whether it’s a good idea or not, the question on everyone’s mind is how to invest in cryptocurrency safely and see good returns.
There are more than 1,600 cryptocurrencies out there, and each one of them has its own individual characteristics. While some are great investment options, others are downright scams designed to steal your money. So, picking the right ones might prove to be very difficult for a beginner investor or someone who doesn’t have enough time to research well.
As a beginner in cryptocurrency investments, when I started doing research, it was hard to find clear explanations capable of answering all my questions. This is why I decided to write this guide on how to invest in cryptocurrencies.
Whether you’re a total beginner or already a seasoned crypto investor but you’re still looking for some advice, we’ve got you covered. In this article, we’ll talk about 7 cryptocurrencies investment tips for beginners.
1. Picking A Crypto Exchange Platform
A crypto exchange platform plays a vital role in crypto investments. Cryptocurrency exchanges are platforms where you can buy and sell cryptocurrencies. You can trade with other users or trade with the exchange directly, typically by placing your cryptocurrency in a wallet on the exchange.
A crypto platform must be user-friendly & secure. Once you find the right platform, you can do the remaining things easily. They help you to manage your investments securely.
The right platform helps conduct the investments perfectly & safely. Some platforms also offer a 0% trading fee & 24*7 customer support. It really enhances the cryptocurrency investment or trading experience. Some of the best platforms you can try are Krypto, Coinbase, Binance & WazirX.
2. Learn the Basics
Before you invest in cryptocurrencies, learn about the different terms and their meanings. To trade, you need to understand what you’re trading. It’s important to learn what the terminologies mean, and how the practices there differ from others.
It’s important to learn all the basic vocabulary used by bitcoin investors and traders and to understand what they mean by it. To be able to retrace your steps, you must understand the basics of the crypto world. The list includes depth charts, candlestick charts, spread charts, order books, and other terminologies that are regularly encountered when trading.
There are millions of online resources which help you to learn blockchain technology from scratch. Most crypto platforms have their own blog where you can learn about various topics easily.
3. Begin with Small Investments
If you are new to the cryptocurrency market, you should start with a small amount of money and then increase it once you are more confident with your investments. Make sure to do your own research before investing.
Once you start understanding this industry, increase the investment amount accordingly. Don’t invest all your money in one coin or token. Distribute your money in various coins.
4. Don’t Listen to Fake News
Cryptocurrencies are controversial because they are alluring to outsiders and unpredictable to insiders. However, if you are already in the game, it may be best to stay with trustworthy sources and ignore the opinions of outsiders.
Crypto sceptics will always be around, and they will never leave without a fight. However, if you already know the importance of crypto, then you should focus on reputable sources instead of non-believers.
Don’t listen to fake news and make your decisions instantly. Instead, do proper research by checking the facts and then make your decision accordingly.
5. Manage Your Risks
The wise trader will invest his money in markets that are more liquid, with less tolerance for risk. In general, trades with high-profit potential should be less than half of your total portfolio holdings.
Never invest too heavily in the stock market. More importantly, never break your own rules and never make an investment that is too big for your personality.
When the price goes up too fast, it’s safer to invest less than more. You should remain calm when you’re trading. Wise traders always keep an eye out for the amount of risk they are assuming in any given trade.
6. Tips for Altcoin Investor
A lot of coins will decrease in value over a certain period of time. That’s why you need to hold a coin for at least a month to find out if it’s a good investment.
If you want to grow your money in the long term, avoid coins that quickly lose their value. Choose coins that people are buying and selling on a large scale. The most promising coins tend to have high daily trading volumes.
The higher the daily trading volume, the more suitable an asset is for long-term investments. If you’re thinking of going long-term with cryptocurrencies, be sure to also observe the charts of these coins and take note of the various price spikes.
7. Opt for an Alternative Personal Email
It’s important to be aware of the risk of a data breach if you use a regular email account. In order to avoid this, it’s recommended that you create a unique email account just for trading, and especially protect that with a second step verification.
Never use text messages for two-factor authorization like Google Authenticator (these are susceptible to social engineering hacks). When setting up your accounts, be sure to select a unique username and password with no personally identifiable information would-be hackers could trace back to you.
Some crypto exchange apps already use Google Authenticator to process your transactions. Krypto is one of them and keeps your all crypto safe with 2-factor authorization.
Conclusion
Like any skill/subject, it takes time, practice, and constant learning to find out how you can maximize the potential of your cryptocurrency—whether you want to use it for trading or to make daily transactions.
If your financial goal is to build a long-term wealth fund, then you have to take the same long-term approach when it comes to understanding cryptocurrencies. Treat it as a skill that you’ll learn over the years.
Apart from this, crypto exchanges are one of the best ways to securely invest your money in cryptocurrencies. If you are interested in cryptocurrencies then you should check out Krypto.
Krypto is an India-based crypto exchange platform that allows traders to buy/sell, trade, send & Pay cryptocurrencies. Through Krypto, you can easily & securely invest your cryptocurrencies. With just Rs.100 or less than $5, you can start your 1st cryptocurrency investment through this app. Krypto is available on both Playstore & Appstore.
Also, don’t feel pressured to have a complete understanding of cryptocurrencies to get started. Just like with anything else, it takes time, practice, and constant learning to find out how you can maximize the potential of your virtual coins—whether you want to.
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