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Every crypto enthusiast who engaged in the world of crypto shares the same goal: to be a successful crypto trader and earn potential profits. If you also have the same goal, it’s worth knowing that the first step of your career has a great impact in the long run; so it’s indeed important to do some research and think properly before making the first crypto purchase in your life. To ensure you’re on the right path, check out these seven things that you need to keep in mind.
Cryptocurrency: Is It For You?
Let’s face it, every investment involves money, so it’s safe to say that investing is a high-risk move. No matter from which angle you look at it, investing in crypto is dangerous. Research shows that among investment ventures, cryptocurrency is the riskiest field, and it’s not hard to see why.
Investing in crypto is not an easy way to make money; where all you need to do is just deposit and wait for it to grow. There are several things that you need to learn, understand and enhance.
As of 2021, there are an estimated 300 million crypto users, and predictions show that global crypto users can reach 1 billion by December 2022. While these millions of people entered the industry with the hopes of earning or increasing their potential profit, not all of them were successful. Although some made it to the list of crypto millionaires, some either gave up along the way or were forced out due to the field’s risks.
The truth is that you need to think deeply before making a move in crypto, as one mistake could cost you your whole career – not to mention that scammers and hackers are present in this industry too.
This is why some people prefer to engage in platforms such as the Bitcoin Era, as it connects them to trusted brokers in the market who know the ins and outs of crypto. Moreover, these experts are also equipped with cutting-edge technology and advanced skills to increase the chances of returns and ensure a safe trading experience. Signing up on Bitcoin Era is also easy and shouldn’t take more than a few minutes of your time.
First Crypto Purchase – 7 Things To Know
As mentioned, cryptocurrency is not about just investing and leaving everything to luck and fate – it requires proper knowledge and skills. The crypto market is also widely known for its volatile nature, which is also one of the factors why some people never got out of the field with smiles on their faces.
Despite the presence of risks in the field, there’s also a positive side to the high potential profits you can get from crypto if you play your cards right. So, if you’ve made up your mind and want to take the risk and engage in this industry, better equip yourself with these seven things to keep in mind.
1. Set A Goal
Before you start investing in cryptocurrency, it’s important to set up a clear and organised layout of why you’re in the field in the first place: set your goals. If you can’t come up with a direct or clear answer, ask yourself some questions, such as why are you interested in cryptocurrency? What made you invest in crypto? And what do you want to achieve with this investment? These questions will be your guideline for your future decisions, so coming up with an answer to these can help you set your goal and make credible decisions in the long run.
2. Do Thorough Research
Before investing a significant amount of money, it’s important to spend hours researching what the field is and understand its risks and which one is the best cryptocurrency. In cryptocurrency, it’s important to know the different platforms, coins, tools and wallets that can impact your whole career.
There are nearly 600 cryptocurrency platforms worldwide waiting for investors to trade different cryptos. If possible, it’s better to check out some articles about the best crypto platforms and research each of them.
3. Choose the appropriate platform
Generally, to start your cryptocurrency career, you first need to decide where to purchase your first cryptocurrency. As mentioned above, there are about 600 crypto exchanges available, each with its benefits to offer.
Keep in mind not to choose a platform just because it’s the first thing that you see or know of. Make sure to consider various factors in choosing cryptos, such as security, transaction speed, user-friendliness, number of cryptos available and 24/7 customer service.
4. Learn How To Store Your Crypto
After buying or earning cryptocurrency, the next step would be to know how or where to store your cryptos. Unlike physical cash that can be stored in a bank or physical wallet, cryptocurrencies are stored in a crypto digital wallet like bitcoin wallet– hot or cold.
So before buying, it’s good to read about the types of wallets, their requirements, security, and benefits to decide which wallet suits you best. For many, considering the safety of your coin and keeping your assets from scammers and other cyber attacks are huge factors in choosing storage.
5. Know How To Diversify
The key to any good investment strategy is proper distribution, which holds especially true when investing in cryptocurrency. Make sure not to invest all your assets in one digital currency just because it’s the only platform you are familiar with.
There are thousands of options in the market, and it’s smart to distribute your investments to different cryptocurrencies. This strategy also helps decrease the chances of losing all your funds in one night; if one crypto you invested in suffered a decline overnight, you will still have something to hope for because of the other investments you have in other cryptos.
6. Understand Different Strategies
In any aspect of life, it’s wise to follow a certain plan or strategy rather than doing whatever you feel like it unexpectedly. Most especially in cryptocurrency, where it involves a significant amount of money, it’s ideal to follow a trading or investing strategy. There are various strategies out there that you can try, and while some are proven effective, it’s still important to do some research, explore and experiment on which strategy works best for your career.
7. Embrace Volatility
The cryptocurrency market is known to have a highly volatile nature, which means that the values of digital coins constantly change. So when you plan on investing in cryptocurrency, you need to be prepared for the ups and downs that happen.
As you progress further in your career, you’ll slowly notice the dramatic swings in prices – where some days it might be constantly high, followed by a whopping fall on the next day. So if your investment crypto portfolio or mental well-being can’t handle this inconsistency, you might want to rethink your choices and decide if crypto is really for you.
Conclusion
Over the years, you might have encountered news or articles about people who made profits from cryptocurrency and hot topics about investors or firms losing a significant amount of money due to scammers and hackers in the crypto world.
It’s perfectly reasonable to feel fear or nervous before entering this industry, but keep in mind that there are things that you can do to eliminate or decrease the chances of these things happening to you. So to fully make the most out of your career, make sure to read the things listed above and try to incorporate them into your career.
