4 Important Tips for Investing in Cryptocurrencies
Hey guys, so you are thinking about investing in cryptocurrencies? Or you have perhaps bought some cryptocurrencies recently but now you are wondering if there’s anything else you need to do?
Don’t worry because here we will talk about 4 important tips that should come in handy for new crypto investors. These tips apply to you if you have bought or if you are still planning to buy some cryptocurrencies.
Investing in cryptocurrencies such as Bitcoin, Ethereum, Ripple or any of the other thousands of cryptocurrencies can seem very luring. You probably have read and seen the huge price increase that Bitcoin and other cryptocurrencies have made in the past few years. Maybe you are wondering is it too late? We can’t say for sure what will happen in the future! But what can tell for sure is that some of the smartest people in the tech and business industry are all turning their eyes and focus on blockchain technology and cryptocurrencies.
Ok, let us explore the 4 best tips for investing in cryptocurrencies
Here are our 4 best tips for investing a bit smarter with cryptocurrencies. Use them as guidance when buying and selling cryptocurrencies.
1 ) Make an investment plan
We believe that with a plan in life all things will fall into place much easier. When you want to find a good school to study at, when you are looking for a job or buying a house. You usually have some plans in place. It might not be written down, but a rough idea of what you are going to exist in your head probably. In the case of buying a house, you probably have things helping you make the right decision such as budget, how much you can spend on it. The location is located in a safe area, near schools, shops, etc. Financing – mortgage, etc.
All very common things most people go through before buying a house. We urge everyone to apply similar thinking and plan for when buying cryptocurrencies.
You need an investment plan! That doesn’t mean you need to write 50+ pages and conduct hours and hours of research. But it means that you think before you act. And that you plan ahead. For example, this might mean:
- Decide if you want to trade coins and tokens?
- Decide if you are planning to hold for a long time or a short time?
- How much can you spend on crypto?
- Are there any specific coins and tokens that interest you more?
- How much of a risk are you willing to take?
Take your time and go through these questions. If you can’t answer a majority of them then we urge you to also consider the fact that you might not be ready.
2 ) Protect yourself and your cryptos
Don’t do anything foolish. Make sure you are doing everything you can to protect your cryptos and yourself. With cryptocurrencies everything is online. That means there are certain risks involved. From hackers and scammers especially. So try to take an extra step to make sure that you are not exposing yourself and your coins and tokens to unnecessary risks. That means don’t give out your password, private keys to anyone.
Don’t deposit big sums of money to a site that you never heard about before. Start with a smaller sum and see if it works for both depositing and withdrawing funds. Don’t leave your coins and tokens on the exchanges for too long. Invest in a safe hardware wallet or another secure crypto wallet.
And don’t trust strangers that promise things such as:
- Give us 1 ETH and we will give you 5 ETH back.
- Invest $500 and we can promise you will make $100 per day for years.
3 ) Don’t fall for hype and FOMO
When the craze for Bitcoin and cryptocurrencies reached its heights at the end of 2017 and the beginning of 2018 beginners was coming in masses for their chance to earn the big money. Everyone wants to earn lots of money with little effort. This greed factor was one of the biggest factors behind the crazy surge in the price of Bitcoin that saw it rise to over $20,000 USD.
Fast forward a few months and the price of Bitcoin started falling. Harsh and quick. The price of Bitcoin went down to the low $3000’s. And many newcomers who invested at $20,000’s were left burned. Some with huge debts after taking out loans.
Now you can blame, but you can also learn from them. And be smarter.
Don’t buy it when there is crazy times on the market. Don’t buy because your friend, co-worker or random internet stranger is promising you huge returns. Don’t buy just because someone else made huge returns. Because just someone else made money doesn’t mean that everyone else also will make money.
The people who sold at $20,000 probably are very happy with their decisions. And the people who bought at $20,000 are probably very disappointed with their decision. There is a fine line between a good decision and a bad decision. So what separates them? Besides luck? We would argue that if you have an investment plan then it is easier to stay strong and not falling for the hype or the FOMO!
4 ) Have fun
The cryptocurrency space can be fascinating and lots of fun. Here we have some of the best memes (crypto memes here). We have some of the smartest people, I mean just look at their t-shirts.
So take your time and spend it with other fans and enthusiasts online at one of the many crypto and blockchain communities. There are many available on Reddit, Telegram, and Facebook. But don’t get offended easily, as it is very common for people at various crypto boards and forums to sometimes be a bit rude, or at least very short. I mean it is full of young men and they can be a bit anonymous. So that is to be expected from time to time.
But otherwise, it is also full of friendly and sharing people. Especially if you like the same coin or token as them! 🙂
That’s it for now! As mentioned take these tips on board. Have fun and invest smartly in crypto! Don’t go all-in on one coin the first thing you do! Start with a plan and things will sort themselves out eventually!