Do you want to invest in crypto but confuse whether you should or not? .Perhaps you have already opened your Bitcoin, Ethereum or Dogecoin wallet. Then you are on the right spot as in this article we are going to share few things that you should know.
Maybe you already know about cryptocurrency and have seen the news that few coins are going to surge. The news will claim that these coins can help you get rich quickly.
Do Not Invest More Than You Can Afford
Keep in mind that crypto trading is quite different than other investments. One thing that all crypto experts can guaranty is volatility. It is also worth noting that digital currencies are not regulated and backed by any government. You cannot get any insurance for your investment as there is no guaranty of the price. The price changes by every minute which makes it very risky.
Last month, one of my friends invest in a UK crypto exchange and successfully earned a 50% profit. Whether you are going to do traditional or crypto trading, they are not free of risk.
So, we will recommend you to invest money that you can lose.
Do Your Research
Before you find an exchange and start investing, it is essential to do your research. First, you should understand how this technology works and what are the risk factors. You should gather all the information related to the topic. You can find community forums and developers online. If you like reading books then you should find some in the library. You should learn not only about digital currency but also cryptography, and economics.
It is best to meet up with people interested in cryptocurrency. Ask them questions and tell them to explain them to you. Keep in mind that most people said things they do not even know. People who know will take the time to help.
Fear of Missing Out
If you are just investing in the fear of missing out then you are going to make a big mistake. You will end up losing everything. This fear is very common with people and sure will destroy everything you have. The problem is due to this fear, we always forget to do our research. You cannot do your business on gut feelings.
Before you buy anything, it is essential to know about it. You have read the news that the price of a coin will increase in the next 24 hours is not research. Doing your investment in such news can give you an upset stomach.
Sounds Too Good to Be True
Do every new company and developer claim that their coin is going to overtake Bitcoin? How many of these claims are true? There is only one way to find out which is research. Many crypto exchanges offer 100x leverage. They will let you lend money for investment. It is a good opportunity if a coin’s value will increase. But it can wipe your entire investment if the price goes down.
Scammers are out there ready to take all the cash you have in your bank account. They know that people are greedy and use different techniques to lure people into their traps. Some of the scammers will give away different products to earn your trust. You will think that they are legitimate and then will use their trap to get all of your savings into their account.
Cryptocurrency is just like jewelry, if you have it in your possession then you are the rightful owner. But if it gets stolen or lost, then there is no way to get it back.
That is why; many experienced crypt traders will recommend you to not hold your currency in digital wallets. Most of these firms are not regulated and if someone able to hack them, they will get all of your investment.
That is why; it is strongly recommended to safeguard your keys on a hardware device. The private key of a wallet is a combination of numbers and letters. It is also possible that you can misplace the piece of paper or a hard drive. That is why; it is better to store your keys somewhere else in case of any mishap. You can ask one of your trusted persons to keep your keys somewhere safe.