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Have you been bitten by the crypto bug ? If you a new to cryptocurrency and wondering how to go about investing in it, here are six tips you may find useful:
Do your research
Before you start any investment, it makes sense to carry out extensive research. Always check if crypto project is a scam. There is a lot of wrong information flooding about and there are also dubious characters looking to take advantage of the naive. Which is why it is important to take your time when it comes to investing in cryptocurrencies. Check out the project and platform inside out so there are no unpleasant surprises later down the line. Also, avoid coins that make crazy promises but have nothing to show for it. Remember the rule – “If it looks or sounds too good to be true, it probably is”.
Diversify your crypto portfolio
This is another great tip as it ensures you don’t put all your crypto eggs in a basket. Spreading your investment among various digital currencies means you are not at risk of over exposure which is good in this volatile market. When it comes to smart investment, diversify is the number one rule.
Shop around for crypto loan rates
If you are considering getting finance, it is worth shopping around for crypto loan rates for your investment. Different loans have various features, which is why it is best to shop around and find the right crypto loan for your needs. It is smart to pay attention to loans that have no extra fees and no monthly payments.
Don’t use all your investment capital
As with most things in life, it is sensible to start small with investing in crypto. The last thing you would want to do is to use all your investment capital at once and be left high and dry. It makes sense to use a proportion oof your investment capital (say 5%) when you are just starting off and gradually build it up as time goes by.
Be careful with mobile wallets
Mobile wallet can be very convenient to use but it also comes with a lot risks. Storing cryptocurrency on the mobile phone can be risky as your phone can easily fall into the wrong hands. It is safer to be traditional and keep your hard-earned investment in a safer place that is not easily accessible.
Expect the unexpected
As with most investments, the world of cryptocurrency is very volatile. It is safer to go in expecting the unexpected, that way you are mentally prepared for the ups and downs of the crypto coins, and you won’t be easily moved by how volatile the market really is. It is not for the faint hearted.
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Hopefully these six tips for investing in cryptocurrency would come in handy for the newbies. It is important to emphasise the need for extensive research before you commit to any currency. There are lots of resources online and you can also speak with a financial adviser for more support and guidance.