You’ve probably seen just how popular bitcoin, ether, and other cryptocurrencies have become in the past few years and you might want to get in on the action yourself. It can be pretty daunting to do so but this guide should help put you on the right track and give you the basic knowledge you need to get started.
While there is a nearly infinite number of ways to get started with crypto investments we’ll narrow it down a bit to keep it simple as simplicity is key when getting into anything new, especially when money is involved.
Don’t blindly follow trends and advice
While listening to experts and following current trends can yield great results you shouldn’t do so blindly. Try and do your own research to understand why certain things are recommended. Not only will you prevent many mistakes like this but you will deepen your understanding of cryptocurrencies much faster than if you just did things that others did without thinking.
Understanding the “why” behind the actions of experts is one of the gateways to becoming an expert yourself. Question everything to gain a better grasp on the fundamentals of crypto and improve your knowledge far more rapidly.
Be careful with scams
While seeing free bitcoins can be tempting, remember to look into the validity of those claims just in case. The same can be said about cheap coins. While investing in cheap cryptocurrencies can yield massive profits if you guess which coins will boom, it can also lead to big busts as most of these coins go nowhere and end up falling off into nothingness.
A healthy dose of skepticism is enough to prevent a lot of unnecessary pain and errors down the line. Remember that you are using your own money for these investments which means they should be made wisely and carefully.
Think about the future
Cryptocurrencies investments should be made with the long-term in mind if you wish to get the biggest possible profits. While short-term you may be able to profit decently, the biggest bucks will come from investing in something which will consistently grow a lot over a longer period of time. It’s easy to get caught up in current trends and forget to focus on slow but stable profits.
Remember that most currencies such as ETH and BTC had some pretty decent flops before massively growing. If you sold them during the flop or at the very beginning of the rise in price then you would probably have a lot of regrets today as you would have missed out on some insane profits because of not thinking about the future and going for quick profits.
Don’t put all your eggs in one basket
Remember that even investments which seem stable can flop suddenly so you shouldn’t put all of your money into a single thing as the risk is just far too high. Diversifying is the safest option, even if you only do so slightly.
Remember that lowering risk is usually a good trade in exchange for slightly lower profits unless you of course are investing for the risk itself, but most people will likely be in it for the cash in which case you want the safer options, albeit with less overall profit.
The main tricks of crypto are that you need to accept the fact that you will be learning constantly in the ever-changing climate, and also understanding that safety should be your number one priority, even over profits most of the time.
We hope that this guide has given you a basic idea of how to approach crypto investments and that you will be able to make some good money with any future investments you make, take care.