CRYPTO BEGINNERS GUIDE: 5 THINGS CRYPTO NEWBIES SHOULD KNOW
BY ABDUL
1. DELVE EXTENSIVELY BEFORE INVESTING
The first step in crypto consciousness is understanding the underlying technology – blockchain. Forget the tech jargons for now. No one needs to convince you of how revolutionary blockchain technology is. A good starting point is reading articles, checking online forums and vlogs discussing cryptos.
2. INVEST ONLY WHAT YOU’RE WILLING TO LOSE
In the cause of my extensive research in the early days, I’ve realized a very important rule of the thumb in the crypto markets — only invest what you’re willing to part ways with. This is because the market is exceptionally volatile, one which is fueled by hype and market sentiments rather than fundamental elements. This makes the crypto markets intensely risky; that’s why you have the potential to make loads of money or lose everything instantly.
3. FOCUS ON THE LONG-RUN
Cryptocurrency is not a “get rich quick scheme”. Do not have the sole mentality of pursuing short-term gains, especially if you do not have the necessary trading or technical skills. Let’s face it, many in the crypto markets have no idea what they’re investing in and are in this only for the short-term rewards. This is a recipe for disaster. It is imperative that every investment decision is based on thorough due diligence and patience.
4. DIVERSIFY YOUR PORTFOLIO
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Your cryptocurrency investments should be spread across the market proportionally.
Never put all your eggs in one basket.
5. KEEP AN EYE ON YOUR PROFIT & LOSS
When I first started, I wasn’t taking cognisance of the amount of satoshi a coin was worth. I simply saw those figures as randomly controlled by bots. To the contrary, those numbers determine the value of your coin at any given time. The key to profitability in this area is to buy low and then sell high. You need to pay attention while placing a buy order.