In 2019, when I started learning about cryptocurrency and how it works, I was eager to start making money immediately. Much money. I didn’t buy Bitcoin in 2011, although I had heard about trading before (platforms like Forex), but I was always very skeptical about them. I have also repeatedly heard about incredible amounts of earnings and how some people receive large profits from their investments.
Friends invited me to different crypto projects, but I had no experience. I didn't even know how to buy or sell cryptocurrency. At the time of research, I lived in a Muslim country, and directly buying Bitcoin from a bank card was fantastic!
A little later I became acquainted with the Binance platform and everything became different!
Therefore, I wanted to share my little experience and give some tips that will not hurt to know if you have no experience in cryptocurrency and decide to become a smart investor!
1) Learn the basics: The first thing you should do is read 2-3 books about investing! This will give some impetus and you will be able to understand whether you would like to engage in this type of activity and delve into the details! Reading articles about cryptocurrency when I first started investing in cryptocurrency wasn't always fun. Because this information needs to be properly processed, digested and a decision made, and I didn't understand much about cryptocurrencies, although I knew a little about Bitcoin, I had no information on how to determine which coins are good options. Agree, in a world where everyone has the right to vote and tries to promote their coin, a little chaos is created! Therefore, it is important to gain basic knowledge about cryptocurrencies so that you can answer the question: What is the total supply? What are altcoins? What is the trading volume? What does pump or dump mean? How to identify chart patterns and candlesticks? How to buy cryptocurrency on the exchange? How to sell on the stock exchange?
2) Follow the news of the crypto world. News information about various projects in the crypto space is one of the things that can affect the price of an asset, so it is important to read articles and watch content about what is happening in the crypto space because it can be a good indicator to know when to sell or buy . If it is good news, there is a possibility that the price will rise, and if it is negative news, it may also cause the price of the asset to fall.
3) Never use borrowed capital: Always invest what you are ready and are not afraid of losing (possibly frozen for a long time). A good way to invest is to invest a small portion of your savings and try to grow your crypto portfolio by learning step by step. Unfortunately, there were a lot of cases in the race for a lost opportunity - people sold apartments, cars, took out a loan in the hope of success, but in the end they were left with debts and without an asset!
4) Buying only cheap coins (meme tokens) is a myth and most often a scam: the story that you can buy one coin at a very low price, and its price will rise, earning thousands of dollars, is a one in a million case . Buying a coin just because its price is low does not promise huge earnings. Therefore, research coins based on their market capitalization, not just price.
5) Withdraw your profits: Even if you invested $100 worth of coins and your investment reaches $3,000, that money will not be yours until you lock in your profits and convert them into fiat currency or a stable coin. You yourself know better than stable-coin in your wallet than a mammoth somewhere)).
I hope my experience will be useful to someone! Stay tuned and good luck in your investing endeavors!