With the crypto craze all over the world, the fear of missing out (FOMO) on the juicy dividends of investing will definitely cause some beginners to invest without proper investment strategies.
As beginners, provided below are five steps and tips to guide your crypto journey and also help minimize risks
1. Always analyse
With a lot of crypto trading and investment scams, it’s important to take a step
back, analyze and put proper strategies in place.
Take a step back from the hype when you’re presented with a lot of
information about a cryptocurrency.
Examine the project with a critical eye. What is the total number of users?
Avoid coins that promise a lot but have failed to do anything tangible.
2. Start small
Another tip is to start with a relatively small investment. No matter how
exciting the space may seem, remember it’s a very risky venture. Cryptos are
very volatile, avoid the temptation to go all-in at the beginning, at least until you
reach a certain level and have a better understanding of the trading space.
3.Choose a secure wallet
Because your bitcoin wallet serves as a safe haven for your digital assets, it’s
critical to pick properly to maintain security and accessibility. For beginner
traders, it’s advisable to trade through a reputable broker and use the wallet
they provide. If you’re looking to choose your own wallet, though, you’ll need
to decide which type is right for you.
Choose a hot wallet or cold wallet based on security and how often you plan
to make cryptocurrency transactions. Hot wallets are easy to use daily, but
that makes them riskier. Cold wallets are offline, so they’re better for keeping
larger sums safe.
4. Stay vigilant
Even if cryptocurrencies have greater safety ratings than regular money, you
need still be cautious.
If you wish to trade big sums of cryptocurrencies in your mobile wallet, be
aware of the risks.
5. Invest in altcoins
Bitcoin is only one aspect of cryptocurrency.
You should diversify your portfolio beyond Bitcoins.
Examine which currencies are performing well in the market and invest in the
ones that you believe will benefit you the most.
You are in command of your cryptocurrency; thus, make informed decisions.