7 Things You Must Learn Before Buying Your First Cryptocurrency

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Investing in Bitcoin

Making your first move into the crypto market is exciting, but it’s important you don’t do what many have done and rush into making decisions learning the tricks of the trade.

As millions across the globe now begin to make their first foray into the world of crypto, this new world might seem exciting, but much more than just a game.  

Here are seven key to help get you started in the crypto market.

  1. Make sure you understand not just how to buy but also how to sell and exchange crypto to your flat currency.

It’s not exactly easy to walk into a grocery store with 100 Dogecoin and pay for your groceries, so it’s fundamental you’re aware of how to buy, sell and withdraw your so it’s easy to access.

Many crypto platforms make this process easy to do, but it’s not always clear cut. 

  1. Diversify your portfolio, dont put all your eggs in one basket.

This is one of the most common rules when it comes to any form of investment – it’s important that you aren’t relying on just one investment to give you a return on your cash. If this one investment goes big, great, but if it doesn’t, you could come out wearing a loss, and a big one at that. 

Investing is a game of risk, and when you do it right, the reward can be astronomical. But if you do it wrong, you could find yourself in a much worse spot than you began. Be smart about where you put your cash.

  1. Always do your due diligence.

Crypto isn’t just . There are thousands of different varieties of currency out there – some with very different methods of management and levels of return. 

Don’t ever buy something simply because it looks good. Do your background, chat to some people, read some forums and make an informed decision.

  1. Check the price history and developer activity before picking a project to invest.

Some of the best due diligence you can take is looking at the detail behind a particular project. Price histories are usually a great place to start. Are you buying in a dip? What’s the recent trajectory of the stock?

Developer activity is always key. Is the project simply artificially inflated?

  1. Timing is everything.

Beware of FOMO and FUD – don’t buy because of FOMO and don’t sell because of FUD – always check the factors before you buy or sell.

With a growing market comes a growing investor base. While you may be seeing indications a certain currency might be rocketing towards the moon, a lot of this might simply be hype. 

Always make smart investment decisions, and don’t rely simply on Reddit to tell you where you should be investing.

  1. Never invest more than what you can afford to lose.

Another key tip when it comes to any form of investment. If you’re relying on what you’re investing to put food on the table, chances are you probably shouldn’t be investing in the first place.

The world of crypto trading is rewarding and exciting, but it’s also risky. The risk of losing everything can never be eliminated, and it’s important you don’t find yourself in a position of struggling to afford to live.

  1. Think long term.

Avoid keeping all your money in exchanges if you would like to trade on a day to day basis, do that with only a portion of your portfolio and keep the rest in a secure wallet. 

Choose only a trusted exchange for trading and always secure your wallet’s private keys. Trading is perfectly fine, but you shouldn’t, ideally, trade more than 30% of your crypto assets.

Often the best returns will be seen from longer-term investments. Keep an eye on your portfolio, but know that sometimes things take time. 

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