If you are looking for some crypto tips to help shape your investment strategy, look no further! Here are a few guidelines to keep in mind when beginning your journey into crypto or Bitcoin.
1. Use an exchange instead of a broker
This will undoubtedly save you money on fees and commissions. Most exchanges are perfectly user friendly and can be easy to use even for beginners. Be sure to check what type of commissions and fees you are signing up for, but going through an exchange is more secure and certainly cheaper.
2. Decide on an investment strategy beforehand
Look at the price trends and decide whether you are purchasing to hold, or purchasing to become a day trader. Each of these comes with its own risks and skill set. It is ultimately up to you to decide, and each strategy has its own wealth of crypto tips that go along with it.
3. Keep your crypto very safe
Owning cryptocurrency is akin to being your own bank. This puts the onus of security and management on you. Though it may seem daunting, there are a few steps you can take to keep your crypto safe and sound. For example, opting for a cold wallet, since they are the most secure type of digital wallets in the sense that they cannot be hacked as they are offline, is a good way to keep your digital cash safe. Using a strong, two-factor authentication method is also vital and can beef up your wallet’s security. For other crypto tips on safety, you can check out our guide to 10 simple rules for keeping your cryptocurrency safe.
4. Consider diversifying your portfolio
Another important crypto tip to keep in mind would be for you to diversify your investments. Buying Bitcoin is great, but there are many altcoins out there with just as much potential for growth. Smaller coins like Ether, Ripple, and many others can also be a great investment for beginners who do not have large budgets to drop on BTC.
5. Beware of panic selling
One of the key things to understand about the crypto world before delving in is the very fact that it is a volatile one. Prices going up and down dramatically is what allows for impressive gains, and thus investors should be wary of panic selling when prices begin to drop. Most prices for large coins tend to correct over the course of a couple of days.
6. …and FOMO purchasing
In addition to panic selling, another one of the important crypto tips to keep in mind would also be to remain wary of FOMO purchasing. Sometimes when the market sees impressive sudden gains, you may find yourself inclined to make some FOMO purchases. It takes discipline to react to an active market, so always be sure to make measured investments as opposed to reacting nervously one way or the other.
7. Beware of scams
One of the more obvious crypto tips, watch out for fraudulent platforms or individuals. Unfortunately, the cryptocurrency world is flush with scammers. Beware of anyone who promises unreasonable returns, and any shady applications or websites that ask for your private keys and details.
8. Do your due diligence.
The last of the crypto tips we can share would be to do your research. The cryptocurrency world is vast, and growing! And while that may seem daunting, you may want to liken it to the early days of the world wide web. Dense in information, yet full of potential! Be sure to consistently do your research on any platforms you sign up to, and be sure not to compromise your wallet.