Are you thinking about buying your first crypto?
However, just like any other investment plan, you need to take in a lot of precautions before making your first step into crypto world.
“Cryptocurrencies are highly volatile and investors should take proper caution before investing their money,” said Ki Young Ju, Crypto Quant CEO.
Here are 5 important things to consider before investing your money into cryptocurrency.
1 Do your market research
The best way to invest in crypto is to know when and where to throw in your money. Take your time to research and understand the technology and trends behind cryptocurrency.
Read articles, trending news, books, listen to podcasts, ask questions to get more insights into cryptography. This will enable you to understand more about the benefits and risks associated, and also help you make wise decisions.
2 Invest little by little
Losing or gaining in cryptocurrency varies in degree since the price normally swings every minute. To be safe here, you would only want to put in what you can afford to lose. Do not throw in your life savings.
3 Beware of scammers
The cryptocurrency market is full of ‘quick money makers’. These are people who will do everything to gain, including scamming you. Just beware that no one is going to give free coins in the crypto market.
4 Take caution with your coins
As a trader, understand that this is a decentralized system of finance where you are the only person with ultimate control over your coins and transactions.
Once your coins are gone, that’s it. There will be no authority to help you. Therefore, your coin safety is your entire responsibility. Embrace the bitcoin theme of —not your keys, not your coins.
5 Avoid peer pressure
Many people rush to invest in cryptocurrency due to fear of missing out (FOMO). This is because they received some unscrupulous emails or saw some adverts. There is no quick money in cryptocurrency.
Avoid these kinds of pressure as they might only lead you to insurmountable losses. Evaluate yourself and whatever you trade on.
Considering these 5 factors will not make you the best crypto trader. However, it will lead you into the right path as you make wise decisions and keep you on the right edge.