As a new cryptocurrency investor, you’ve probably been asking yourself questions like: did the bitcoin bubble really burst, is it too late to get started, and what are the best tips to be effective in this newly emerging investment space?
Taking a more historical perspective, we can see that this is just the most recent bear market in a long line of them. Similarly, there is a bull market for every down market; an endless loop of eternal equilibrium. As a result, despite recent major declines, cryptocurrencies are far from dead, and the road to cryptocurrency investment nirvana is more promising than ever.
It’s best to be as prepared as possible for any fruitful journey. We’ll send you the requisite eight tips in this article to help you achieve your desired state of cryptocurrency investing enlightenment.
1. Ignore the “noise” around you.
A number of people are becoming interested in the financial potential and practical applications of cryptocurrency assets. Both sides speak loudly and enjoy making a lot of noise. It’s best to buy and keep what you believe in while ignoring the noise around you if you want to be a good investor in this room.
2. Be prepared for the unexpected.
However, there is considerable uncertainty in cryptocurrency markets, which should not be overlooked. The intelligent crypto investor would be able to behave rationally rather than emotionally in times of sudden price declines by psychologically planning for these unfavorable, and sometimes frightening, investment performances.
3. Avoid making a poor investment or trading decision.
Beginner cryptocurrency investors often make the mistake of joining a “pump and dump” party. Certain social media communities or “gurus” can also provide investment advice on a specific coin. These are areas you should avoid at all costs; when people go down these routes, they seldom return.
4. Perform your due diligence.
There is also wifi on the road to crypto investing enlightenment in this new digital age, so there is no reason to invest with little to no understanding of the underlying asset. Almost every coin has a whitepaper that is easily accessible on the internet. The savvy traveler, like getting maps in the car, must be prepared.
Tools like the All Crypto Whitepapers will help everyone brush up on their knowledge of possible future investments, from the most actively traded to the most niche.
5. Do not put all of your crypto-currencies in one basket.
When it comes to cryptocurrency investing, conventional wisdom holds that diversification is important. Diversification is important for any safe cryptocurrency portfolio, just as financial advisors suggest holding various types of stocks and other assets.
6. Choose a different personal email address.
Using a default email address exposes an investor to the possibility of a data breach, which is needless. To mitigate this risk, it is recommended that you establish a separate trading account, preferably with two-factor authentication password protection. Instead of using text messages for two-factor authorization, make sure to use a dedicated two-factor program (such as Google authenticator).
When creating your accounts, make sure you use a unique username and password that contains no personally identifying information that would-be hackers might use to track you down.
7. Recognize the benefits of both cold and hot wallets.
An offline “cold” wallet or an online “hot” wallet may be used to store cryptocurrency. Hot wallets are a more appealing choice for new investors due to their ease of use. However, as convenient as hot wallets are, they are vulnerable to hacking, while cold wallets cannot be hacked.
It’s best to keep cryptocurrency you want to invest for a long time in a cold wallet and just a small amount in a hot wallet for things like trading or staking. I, like most crypto investors, keep some of my crypto assets in a wallet (SnapBots Wallet) and receive a reward by staking them.
8. Keep an eye out for mobile wallets.
Using a cell phone to trade or store large amounts of any cryptocurrency is just too dangerous. Electronically or physically, mobile phones are more vulnerable to hacking. While convenient, the security issues associated with executing trades or storing assets on mobile devices should not be overlooked.
However, crypto asset investing, trading, staking can be considered a high-risk activity. Please use your extreme judgement when making the decision to invest in, sell, or to stake Crypto Assets.