Steps Before Jump into Crypto
The hype behind crypto success is always tempting. You heard a 12 years old making $1.2 in NFT and a crypto investor investing $1000 in Dogecoin and that make him a new millionaire after the meme’s coin price rose up.
However, before you empty your whole saving into doing something drastic, here are a few things to keep in mind before investing in any cryptocurrencies.
Understand the Industry
Remember, to always research before putting your cash into anything. Do your research, learn and understand how cryptocurrencies work. Especially the one you choose to invest in. Get familiar with the return and risk behind this cryptocurrency, blockchain as well as coin of choice.
Do your intensive homework. Not only once! But regularly. This is due to the investment medium nature as everything tends to move a lot faster in the technology and cryptocurrency field. Make sure to always keep updated with the development, legal enforcement and upcoming prospect. For example, if you are a ripple investor, always keep updated on SC legal decisions.
Avoid FOMO and Greed
In investing, the main two factors in making a decision are Fear and Greed. Don’t be moved by unverified news or FOMO (fear of losing out). Fear is never a good indicator of making a decision. Remember, just because your circle of friends jump into the crypto bandwagon because of the promise of big investment returns, doesn’t mean you should jump dive in right on. Take your time researching. Like FOMO, greed in starting a new investment is a dangerous move, especially if you don’t have any investment knowledge. Unless you are a professional trader. Always start small.
There’s nothing like hands-on experience to learning tricks of how the investment works. Once you feel comfortable with your research, start investing. Open an account to buy the cryptocurrency of your choice. Start with a small investment amount that you can experiment well with. This is to aid you in understanding the market’s mechanism. Once you are comfortable, move forward with a bigger amount or add more coins into your portfolio.
Always Remember! “Invest only what you can afford to lose”.
Always Keep Updated!
The best place to gather information on crypto would be Twitter, Telegram and verified crypto news channels like Cointelegraph, be[in]crypto, Coindesk and more. Many new crypto start-ups educate the public on their products on Twitter Space. The space is also used by the crypto influencers to deliver their view. Telegram Channel pages like CryptoWhale sent alerts of every crypto whale movement where every single move by a crypto whale was able to move the market.
In a nutshell, always remember crypto investment should be treated as an investment and not as a fast money solution. Plus, only invest the amount you can lose. Do not put in your entire saving with the mindset of higher capital, and higher return.
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