So you’re excited to get into the crypto space buy some crypto but you’re not sure where to start you need a little bit of guidance a little bit of advice maybe. Here are the top 10 crypto tips before buying your first crypto.
You’re still in the beginner phase but that’s fine, nothing wrong with that, I was once exactly where you are and this is why in this article I’m going to be sharing some information things I wish I knew when I started my crypto journey and this is why in this article we’re going to be looking at my top 10 crypto tips for beginners that you should know before buying your very first crypto.
- DYOR: Do Your Own Research
- Don’t Invest more than you can afford to lose
- Resist The FOMO
- If it sounds too good to be true it probably is
- Don’t Trust, Verify!
- Use DCA: Dollar Cost Average
- Use a New and Secure Email Account
- You can Buy a Fraction of a Coin
- Secure your PC and Your Phone
- Keep an offline record of your Crypto and Passwords
DYOR: Do Your Own Research
From the list of top 10 crypto tips, it’s 1st, and its extremely important because a lot of people get involved in crypto because of what somebody else told him, what somebody else told him crypto was gonna do and then it doesn’t do it in what happens they lose money. So before you invest any money before you go and buy out buy any crypto that you want or that you think you should be buying spend some time investing not money but investing in knowledge. Try to find out some more info about it. Go and check certain websites. Go and read up about the technology behind these cryptos and specific cryptos, in particular, they are coming usually community forums, there are podcasts, there are books online all these types of things but all of this together will help you get a good understanding of the industry as a whole and then the particular cryptos themselves.
I like to use two platforms which are coin desk and Crypto Globel they’ve got very nice clean pages that give you a lot of info on the particular coins themselves, so if somebody tells you, man, I’d like to invest or you should invest in this particular coin you can go to that site and actually go and do research, get the official website check the white paper as to what the coin’s purpose is you can also go to coingecko.com and find out even more information.
Don’t Invest more than you can afford to lose
From the list of top 10 crypto tips, it’s 2nd, Now you need to understand that crypto investments are riskier than other investments out there, I mean nothing is guaranteed except volatility and what’s more it’s unregulated in most cases. So we’ve seen the prices of crypto coins swing wildly you know from minute to minute moving up and moving down and while the market at the moment is basking in a downtrend which means the markets are and the prices are generally moving downward. It has endured painful and massive corrections in the past and it certainly will in the future again. Danger varies in degree and bitcoin the original cryptocurrency even though it’s been around for more than a decade and is unlikely to disappear anytime soon, it’s not free of risk. This is why tip number two says let’s not bet the proverbial farm or our entire life savings on any particular coin and again it takes us back to tip number one where we spoke about doing your own research.
Resist The FOMO
From the list of top 10 crypto tips, 3rd tip is to resist the FOMO. FOMO stands for fear of missing out and this is a surefire way to destroy whatever wealth you have accumulated over time. The problem is it’s actually a gut reaction to something that should be researched in the first place. Trading and buying and selling in general based on a gut reaction is quickly going to lead to an upset stomach. Know what you are buying I mean really know what you’re buying. If you’re just opening a trading app and seeing that there’s a coin that’s gone up in value by 30 to 50% over the past 24 hours and you want to buy into that that is not research. It could unfortunately be that you are going to be the unlucky person to buy into a failing cryptocurrency.
Again, unfortunately, every crypto even bitcoin has what we call pumpers these are shameless promoters of the coin and they just want you to buy in and they create a lot of hype and a lot of FOMO around these coins, don’t succumb to peer pressure. Folks this is not the high school you can make up your own mind and make your own decisions. So my tip research and research again.
If it sounds too good to be true it probably is
From the list of top 10 crypto tips, 4th tip is if it sounds too good to be true it probably is. When dealing with money and investments you can be sure the scammers are all over the show. They are there, they are waiting to promote something to you that they’ll tell you is better than bitcoin, it’s going to be the next big thing, it’s going to overtake Ethereum, it’s going to do this that, and the other but how would if it’s actually going to do that? One-word research.
Now many crypto opportunities will offer you what they call set ROI or a set return on investment. Some of them tell you that if you get involved with us you’ll make one percent a day 20% a week you’ll make 150% a month. They give you all these types of things but I want you to think about this one point. If the crypto market is highly volatile like all the markets are like anything in life then how is it that they can offer you in that type of market a sit ROI they can’t and there’s only one thing to do when you are confronted with an opportunity like this is run away.
Don’t Trust, Verify!
From the list of top 10 crypto tips, the 5th tip is don’t trust verify, Scammers as we’ve said before abounding in this market, and from what we saw over the last few months there was actually a big scam that came out using Elon musk’s name. Now we know that recently he was on television and it was just after this that some of these guys actually impersonated his Twitter account and they were telling people listen if you send us a certain amount of crypto obviously impersonating Elon musk then I will send you 10 times that amount. Unfortunately, some people have been scammed some people thought well this is Elon musk saying this so it must be true and we know that is not the case.
We need to verify through a number of different sources to actually find out if is this correct. Go and google it go and check community forums to find out has anyone else has been a victim of something like this, is it legitimate is it not you cannot just trust it because it seems like it’s this famous person that it is actually true. So this is why we don’t trust we verify.
Use DCA: Dollar Cost Average
From the list of top 10 crypto tips, the 6th tip is to use dollar cost averaging and don’t obsess about the price, go outside, get some sunshine, exercise, and some fresh air why because you can do it all and still invest in crypto. Now bear in mind markets will fluctuate from day to day hour to hour minute to minute, but any crypto is worth it’s salt in fact any investment of any kind with its salt is a long-term bet, and what’s the best way to invest and not obsess well that’s where we use the DCA dollar cost averaging.
All this means is that we gonna set aside a certain amount may be a certain dollar amount that we want to use to buy crypto with and this can be a variety of cryptos but you sit in that aside to buy this crypto maybe weekly, monthly maybe even daily saying look I’m gonna buy $10 worth of crypto every week and of that ten dollars I’m gonna spend $2 on polka dot $2 on this one $3 on that one but that is your strategy. And what happens is that over the course of doing this over maybe a two-three year period you would actually have purchased the crypto for a better average price and it means long term you’re going to benefit, so we invest and don’t obsess about the price every single day.
Use a New and Secure Email Account
From the list of top 10 crypto tips, the 7th tip is to use a new email account preferably a secure one. Now when it comes to crypto one of the biggest issues is security, so when you are going to be setting up exchange accounts, when you’re gonna be setting up crypto wallets on your phone folks here’s my tip use a brand new email set up a new email account for yourself preferably again a secure one that you’re gonna use just to get all your crypto info.
You can Buy a Fraction of a Coin
From the list of top 10 crypto tips, the 8th tip is you can buy a fraction of a bitcoin and in fact fractions of other coins as well. Now please I say this because don’t let people tell you you have to buy a full bitcoin or a full adder coin or full whatever coin is out there you don’t have to do it it’s simply a lie. You can go and buy as little crypto as you want to and that will usually be determined by the exchange. You need to also bear in mind that bitcoin itself can be broken down into eight decimal places. So you can go and buy 10, 20, 5, or 10 dollars worth of bitcoin you don’t have to go and buy half a bitcoin quarter bitcoin, and in fact even a whole bitcoin you don’t have to do that.
This then allows you an opportunity to buy a little play around with it while you get to understand the markets and the entire industry and allows you to experiment with things like buying holding and trading.
Secure your PC and Your Phone
From the list of top 10 crypto tips, the second last tip is to secure your pc and your phone now people don’t like to hear this because folks often think that their pc and their phone or their laptop cannot be hacked but sad to say the bad news is this is a reality and it happens every day. So how can you keep your laptop or your computer secure well?
Number one you want to make sure that you have a good updated antivirus system running you also want to make sure over and above that that you have a program like Malwarebytes that can scan through your pc to pick up if there’s any malicious or in other words any harmful software that might be installed even without you knowing about it.
As far as your phone’s concerned well I know some phones do allow you to put antivirus software on there but two-factor authentication is your friend. Now I know some people don’t like two-factor authentication but let me ask you this would you rather do that or have someone hack your account and you lose all your crypto?
Keep an offline record of your Crypto and Passwords
From the list of top 10 crypto tips, the last tip is to keep an offline record of all of your passwords and assets. Now I know this sounds contradictory it sounds quite silly considering we are in a digital age and we’re dealing with digital assets, but folks coming from an IT background trust me you want to do this. The reason is that if you lose your phone what if something happens to your computer anything like that where you’ve stored it online and you can’t get access to it? Now with you have written everything down, especially your passwords, your seed phrases all those types of things you’ll have a physical copy of that and you can use that to get back into these accounts and retrieve whatever you need to.
Related: 5 Best Crypto Strategies for Beginners
It’s also a good idea to make notes on which exchanges you bought your crypto from the date you bought it obviously the password and username that goes with it and also the price at which you bought it. So folks thanks so much for joining me as we finish our top 10 crypto tips for beginners let me know in the comments down below which of these tips you’ve implemented, and which of these tips has brought you the most value.
Yes, you can profit from cryptocurrencies. The majority of crypto assets come with a high level of risk due to their inherent volatility.
All the knowledge you gain from trading bitcoin or other cryptocurrencies will be useful outside of the market. The abilities of discipline, discernment, and adaptability are highly valued.
Day trading is one aggressive short-term trading strategy. The time of opening and closing markets are highly volatile and if you are a daily trader you can make good money at that time.
Even though there are generally fewer orders, individual orders are typically large. It suggests that the largest cryptocurrency holders, or “bitcoin whales,” are active over the weekend in order to accumulate or sell a significant amount of bitcoins and profit from price swings over the weekend.
1- Focus on Liquid Currencies
2- Trade, Do Not Gamble mean don’t Bet
3- Buy the red and sell the green
4- Make Sure to Conduct Due Diligence for Cheaper Cryptos
5- Trade with a mind not with emotions