As we progress further into the information age, our lives are becoming more and more “online”. It is rare, even impossible, to find someone in the Developed World who doesn’t spend a good portion of their day on the internet in one way or another, whether it be for business or pleasure. The twenty-first century has given us some new and exciting developments in science and technology, but perhaps one of the most prominent issues has been the topic of cryptocurrency.
For the uninitiated, cryptocurrency is a digital currency, cryptographically secured, making it nearly impossible to counterfeit. Most crypto-currency are decentralized networks operating based on blockchain technology. What makes crypto-currency so popular and appealing to most people is their separation from any central authority, such as a government, which, in theory, renders crypto immune from interference by any government.
Twelve years ago, an anonymous person, under the pseudonym Satoshi Nakamoto, created the first cryptocurrency, Bitcoin. Since then, Bitcoin has gotten popular and has inspired several other cryptocurrencies, such as Ethereum, Tether, and Dogecoin. Despite the competition, Bitcoin remains the most popular and respected of the cryptocurrencies, with hundreds of new Bitcoins still being purchased daily.
So, what are the things to consider, if you are going to get involved in the purchasing and trading of cryptocurrency?
1. Finding the Right App
The first thing to consider is the crypto trading app. Finding the right app may seem a daunting task, especially nowadays, when we are flooded with a sea of crypto trading apps. A number of crypto-trading apps have appeared since the popularization of cryptocurrency. Apps such as PrimeAdvantage, which offer stellar customer service and an easy-to-use, beginner friendly interface are becoming more and more popular.
Do some research, discover the app that you think best suits you, and you will be one step closer to getting into the world of crypto-trading.
2. Safety Measures
After you’ve discovered your preferred crypto-trading app, the most important thing is to research its security and safety measures. In the digital age, nothing is more important than your online safety and data. So being mindful of security should be on the forefront of your mind. Looking at the above-listed website, we can see that their users’ security is their top priority, using military-grade encryption to protect the data of their user base.
3. The Cryptocurrency to Invest In
After you have decided on an app, the next thing to do is research the many cryptocurrencies themselves, and find the one that most appeals to you. The most valuable and still the most respected crypto today is Bitcoin. Its popularity stems from its functionality and proven track record. Many believe that Bitcoin will become a primary method of payment in the future. Which is why a lot of people are investing in Bitcoin today.
4. Be Mindful of the Fluctuating Prices
Though the many crypto-trading apps popular today offer an easy-to-use interface, and top notch customer service, making it easier than ever to become an investor, there is still some onus on the investor themselves to do the research and look into the fluctuating prices of crypto currency. It may seem a daunting task at first, but once you get the hang of it, it will come easy to you, and in no time at all, you will be able to reap the rewards. Just remember to maintain a positive attitude, persevere when things get tough and spend as much time as you can looking over the crypto stocks and looking into the fluctuating prices.
5. Don’t buy simply
If you are a beginner or not aware of the unpredictability the crypto market holds, this is the most common mistake you may commit. Don’t get carried away by the trends. Do thorough research before investing or buying any crypto currency. Also, don’t give in to the price trends as well. Always do market research instead of investing in cheaper currencies. This will cost you dearly.
Affordability is the last option to be factored in. Instead, evaluate the currency’s market cap to take your final call. Profitability is considered proportional to a currency’s market cap. Higher the market cap, higher will be the profitability. Hence, choose market cap to make a decision instead of relying on affordability, which is not a wise option.
6. Do not invest all in one source
This is another common mistake committed by the investors. If you are investing in a single source, your situation boils down to prosper or perish. If a loss occurs, you lose everything you have and you may have to restart from zero or even minus. Situations like these have destroyed many investors and traders. It is high time to learn your lesson. Always be wise and invest in different sources.
Diversifying your investments is one clever option. This way even if you lose in one source, you will still have your stakes in other sources.
7. Managing risks
This is the most valuable advice one could ever get. This is one of the wise options experienced investors and traders swear by. Don’t buy into high profits and high rates rhetoric. It’s okay, if you are making small and consistent profits. Short cuts and easy money is not recommended in any case. Swear by these words in all instances.
Always invest less in a portfolio that is less liquid. Make sure your investments are making regular profits. That’s it. That’s all what matters.
8. Have a motive
Do not enter into the market just because you see people making massive amounts. Be sure why you want to trade. Have a goal and motive. Think about why you want to invest. And, align your goals with the steps you are taking.
For example, if you enter the market just because your friend is making profits then that’s not going to take you anywhere. Rather the chances are high that you may lose your everything. That’s the last thing anyone wishes while investing. So, think and think better before investing and stepping into the deep waters.
Crypto trading has become very profitable but not without the high risk associated with it. You should be aware of the risks and have experience in trading to avoid losses. Crypto trading is one of the volatile investment markets. If you don’t take care of certain things, the chances are pretty high that you may lose everything. These tips help you avoid such situations. However, these are just some tips for beginner investors, who want to dip their toes into the world of crypto currency. Follow these tips and you will become an investor in no time at all.