Countless parts of the world are experiencing economic recessions, with prices rising at exponential rates. The recession doesn’t only make commodities expensive; it also makes saving extremely difficult for many. Thankfully, there’s a market that, though highly volatile, always promises a good return on investment. This market is cryptocurrency – an investment asset that has become progressively popular for many investors. Although it’s regarded as an investment, many people struggle to grasp its concept well enough to make good decisions. For beginners looking to trade crypto, this post simplifies the process, equipping you with actionable tips that can have you making consistent returns.
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Explore different virtual coins
The worst thing you can do as a crypto investor is to place all your trust in a single coin. It is vital to note that in the world of cryptocurrency, bitcoin is only one segment of the entire universe. For example, there are some unique advantages of dogecoin, and these might differ from Coin DCX. Placing all your assets into the purchase and investment of one virtual coin could spell doom, as you might lose more than you gain. Be dedicated to discovering all coins and deciphering which ones are performing well overall. Be wise with your asset choices, and you’ll never regret your investment decisions.
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Only use credible news sources
For someone planning to invest in crypto as a beginner, you need to be fully educated on the concept, its trends, and how best to invest. All over the internet are countless articles, photos, and videos with varying and opposing views about crypto as an investment tool. While a specific group thinks of crypto as a legit means of investing, others strongly believe it is just a fad that passes away. Before investing, you need to know the voices you want to listen to and seek out authentic sources of that voice. Look out for sources you can always trust, and do well to avoid all excess noise.
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Choose trusted platforms
The next step you usually take after researching to decide if crypto is meant for you or not is to choose and sign up for a crypto trading platform. For example, the popular platforms in India include Coin DCX and WazirX, amongst others. Choose any of the top and most trusted crypto platforms within your region and open an account for crypto trading.
Signing up to trade isn’t as simple as opening an account in a bank. You’ll require specific documents to complete your KYC process. Some of these documents include proof of address, identity proof, and PAN card, amongst others. You’ll have to submit your payment options and your personal information, as every deposit or withdrawal you’ll do in subsequent days will pass through that payment option you choose.
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Psyche yourself for volatility
As mentioned earlier, cryptocurrency is a highly volatile investment option, with its stability more questions than the standard currencies and investments. As a result, experts advise that you remain agile with your crypto investment decisions, often restructuring your thoughts about how best to utilize your assets so that you don’t run at a huge loss.
Crypto and the constant introduction of virtual coins can be overwhelming, even for experienced traders; thus, expect to experience some dips and hard hits throughout your investment. When you find yourself in that boat, know that it’s always going to get better; that’s the magic of crypto.
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Cold and Hot Wallets are awesome!
Another tip all crypto investors swear by and always ensure they pass on to beginners is to learn the use of both cold and hot wallets. This is a game changer, especially in keeping your assets safe. While coins and other crypto elements exist virtually, there are two ways to store your coins. They can be stored offline or online, also known as cold and hot wallet systems. As a beginner, you’ll find that identifying and using hot wallets is relatively easier than cold wallets. Hot, offline wallets are highly versatile and more useful to beginning investors. Cold wallets can also be on or offline, but the major difference between them and their hot wallet counterparts is that they don’t offer any protection against miscreants and hackers. Using both wallet types is great because it creates an avenue for you to diversify your assets.
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Be vigilant
Despite the volatility cryptocurrencies offer, they are still recognized as one of the safest means of investment. Compared to traditional currencies, their high safety ratings don’t mean you must invest with your guard down. It always pays to be on the alert to ensure your assets remain within your custody no matter what. Be mindful of the number of assets you trade and how you trade them. This is important, especially when you trade large amounts of altcoins in your mobile wallet. Research the best ways to handle your assets, and learn all the best ways you can manage your money such that its trading is convenient.
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Automate purchases
With crypto investing comes an added advantage of pound-cost averaging; the best way to attain this is by automating your purchases. Several trusted coins have made it possible for asset owners to make recurring purchases. Automating your purchases means informing your platform of your preferred cryptocurrency and purchasing a fixed amount monthly. You could opt from $100 to $50 and anything in between. Automation services, like this app, also reduces the stress associated with timing the market to buy assets when they’re at their lowest or highest.
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Don’t fall for scams
One mistake many new investors make is to follow every single crypto idea. Here’s a tip: if it sounds too good to be true, it most likely is. There are countless scams, but the four most common ones include the cloud multiplier system, malicious wallet software, pump and dump, and fake coins. There are several fake coins in the market. It can be tough telling what’s real and what’s not. Fake coins are dangerous because they enable criminals to steal your identity and assets, affecting your financial health. If you’re ever in doubt, avoid the investment and focus on other assets.
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Invest for the long haul
The volatility of the crypto trade can cause you to fall into a frenzy. When the prices rise and fall dramatically, you might be tempted to quit or take out your money to avoid a loss. The best thing to do in such moments is to wait. Patience is the name of the game when it comes to crypto; thus, it’s best to keep your assets intact for months or years. That’s when you’re going to reap all your rewards.
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Crypto isn’t easy money
If you’re investing in crypto because you think it’s easy money, it might be time for you to think again. There’s nothing easy about investment, whether you’re investing in stocks, bonds or virtual coins. If anyone tells you otherwise, chances are they’re planning on selling you a scam.
With these handy tips and tricks, any beginner in the crypto industry should be able to navigate their way within the new terrain, make sound investments and earn decent rewards. Cryptocurrency is a great way to reap huge returns. It only requires intentionality and tons of patience. Remember to research all the current coin options and the pros and cons that each one presents. Always keep the longer-term vision in mind, and ensure that you always remain vigilant to avoid falling victim to all multiple scams that are currently out there.