Cryptocurrencies have emerged as a whole new class of assets in today’s world. They carry out all their functions on blockchain technology and enjoy a lot of popularity around the world. Several investors jumped in early to add these assets into their investment portfolios and have already started enjoying great returns. Curious about these digital assets and also want to try digital asset investment yourself? The most important part is to understand the nuances of crypto investments. Read more
Before you get started, take note of these five things. Once you’ve checked these boxes, you’re less likely to feel underprepared and would also not fall into the temptation of believing everything you see on social media.
- A safe investment is the best investment
Enter the crypto market keeping in mind that you could lose all your investment at once. Therefore, it is wise to risk only the amount that you can afford to lose.
You may be tempted to go all-in hoping for the beginner’s luck to work its charm but the market is volatile. There are several factors that need to be taken into account and a lot of them become comprehensible only when you actually start trading. Therefore, it is best to think of your initial investment as a learning cost. It helps you learn the tricks of the trade and if at all a situation arises where you end up losing the money, you can set it aside as a fee for your lessons.
- Research
You may come across a number of self-proclaimed crypto experts and gurus who would all talk about having that one, magical solution to earning more with crypto.
A word of caution here, don’t trust any Tom, Dick, or Harry with your money, especially not someone who is not a licensed financial advisor. Since the crypto market is new, there are many people who try to make money by simply giving away information. Since it is less likely that these folks are trustworthy financial advisors, they’re not exactly concerned about how well or how poorly your portfolio is performing. Therefore, it is wise to do your own research before investing, especially when you’re dealing with a new coin.
- Common sense will go a long way
So you’ve come across this great deal where your returns will be 100 times the value of your new cryptocurrency. Too good to be true? It probably is and you should stay away from such deals. Yes, there are some notable situations where an early investor could make great returns from a new coin because the value grew exponentially but this may not be the case all the time. There are many instances where investors lost their capital in the hope of one of these legendary gains. The wise thing to do is if you’re making gains consistently by investing in a coin, set aside your initial investment.
- Acting on emotions is a hard no
The crypto market is volatile. When new cryptocurrencies come into the picture, it is only natural to assume that they’re the best deals of the lot because the constant promotions and ads tell us so. However, don’t be quick to jump on every new token that comes into the market. Keep your FOMO in check and make a smart decision. Remember that PR may not always be fact-checked and is in fact paid for.
- Safeguard your keys
Like you would not give away your passwords, never share your private keys. In fact, you should keep them safe and ensure that you’re the only one who can access them. Be careful with these keys, if you lose them, you would not be able to access your crypto assets. Do not store your private keys on your computer and definitely don’t let them be out in the open. It is best to memorize it or have it written on a piece of paper to ensure better security.
