The rising popularity of cryptocurrency is driving investors to pool their money into Bitcoin and Altcoins. As you know, the prices of crypto coins tend to fluctuate, and this means you too can buy them when it is lower and sell them when the prices increase.
Investing in digital currency might look attractive and easy. However, you will need to learn something before actually putting any funds there. For instance, know a few basic terms that operate in the crypto vocabulary; this will let you understand the mechanism of the blockchain system’s work and use this knowledge for your benefit later.
Define Your Goal for Investing and Be Ready to Face Risks
Besides terms and definitions, you have to formulate your motivation for investing. This is not a game to play out of pure curiosity. The earnings are severe, but so are the losses. So, in the first place, check yourself: are you the risk-averse type of person? Now, this is especially important, so don’t jump to decisions right away. Think how well you will handle the situation when a particular coin is banned, or the volatility changes overnight, and your investment is no longer profitable.
If you want to invest in something more stable and won’t sleep well at night because of the risks, stay away from crypto trading. Don’t do it just because it’s a new fashion.
What is more, try to be specific about your financial goals. Know why you invest and where you will put the earned money. According to the chief investment officer of Delphi Advisers, many people owning cryptocurrency dump their investments in it for the wrong reason without even understanding what they are purchasing.
Thus, another point that makes sense is the initial stage of investing in education. Make your research, read reliable sources, and consult experts in this sphere to understand better why you need crypto and whether you need it at all.
3 Tips to Make Smart and Secure Investments In Cryptocurrency
If you have made it to this paragraph, you have probably identified the key reasons you are ready to invest. So, here we will share several useful pieces of advice for beginners who prepare to dump their funds into Bitcoin trading.
Tip 1. Pick a reputable exchange.
This is a hard thing to do since services for trading have become so many that you can easily get lost. It doesn’t always mean that a platform is reliable if it is advertised everywhere. Your task is to find an official place for trading that doesn’t break the law of the country you live in and provide convenient conditions for trading.
We can recommend Coinbase, Binance, Gemini, Kraken, and Bitcoin Loophole, among official places for trading crypto. All of them are legal to use and are devoted to keeping their clients safe and sound. Such online platforms are quick for signing up, easy to work with, and don’t demand any experience in trading.
Tip 2. Choose safe storage.
Now, there are two main ways to keep your funds. The first is leaving the crypto in the same account you bought it with. This way is not wrong, especially for a starting trader. Still, professionals advise increasing the security of these funds and transfer them to a separate crypto wallet. Wallets like this can have different grades of security and be of various kinds. Choosing a wallet is very important for traders of all skill levels.
Be attentive to the exchange platform’s rules about crypto transferring since not all of them allow it. For example, PayPal doesn’t let users keep the crypto in their storage. So, make sure you know this policy before purchasing cryptocurrency.
Tip 3. Begin with minimal deposits.
As a starter, you don’t need to invest everything you have. The lowest possible sum will be enough for the first time to get acquainted with the trading procedure and see what it brings.
Bitcoin Loophole is one of the platforms for trading requiring a minimal deposit of 250 USD. This deposit is the key to opening access to actual trading. Besides, there is no need to start with the king of crypto Bitcoin. At Bitcoin Loophole, you can buy multiple crypto coins, including Ripple, Litecoin, Bitcoin Cash, or EOS. Just go with the one you feel is convenient trading.
Does crypto trading make sense personally for you?
Think of it every time you feel that you surrender to the pressure of this hype around cryptocurrency. This will help you make the right decision. Remember to do research, consider the risks, and know your true motivation for trading. And, good luck with investing in crypto!