Before you start putting your hard earned money in Cryptocurrencies like Bitcoin, Ethereum, Litecoin and others make sure you to read these 4 simple tips to get prepared for the world of Cryptocurrency. Start with learning about basic knowledge about Cryptocurrency and Blockchain and do some research about coins you are going to invest. The goal is to grow your investments over time and generate profit.
Takeaways
- Don’t invest in an asset which you don’t understand
- Find coins which fits your preferences
- Grow your investment
The topic Cryptocurrency and Blockchain can be very complicated for newcomers. If you want to invest in Bitcoin and other Cryptocurrencies but you do not know where to start, this is exactly for you.
Do your Homework
Before you get into Cryptocurrency, spend some time getting some knowledge about Cryptocurrency and Blockchain. You can’t invest in an asset without knowing how it works.
For getting a quick start with Bitcoin and Blockchain, we definitely recommend you to checkout our Free eBook here which will save you a lot of your precious time searching for explanations and guides. Otherwise you should learn about how the Blockchain works and how the financial system works.
If you want to start with Cryptocurrency, it is very important that you are willing to research for information on your own. It’s a big mistake if you just rely on someone’s opinion and put your hard earned money in a coin which you absolutely know nothing about. This will most of the time lead to money loss.
Find Coins you want to invest in
The next step is to decide in which Cryptocurrencies you want to invest in. There are thousands of different coins and tokens out there with a pricing between a few cents to thousands of dollars per coin. Not only the amount of money, also the period of time you want to invest will shape your decision on which coin to buy.
Instead of directly buying your Coin of interest, it is very important for you to monitor the prices. There are many websites for doing that. The most popular one is CoinMarketCap.
Check the historical prices and how the price changed over time. Compare charts of Coins which had a positive return to ones which depreciated. Get some feeling for the market.
Grow your Investment
At the end of the day, the goal is to make profit and grow your investment. Basically you can reach it by buying low and selling at a higher price. A rule of thumb: If the price of a token is high, it is very likely to drop and vise versa.
But how do you know when the right time to buy is? The answer lies in chart analysis and being up to date about the current market situation. The most reliable sources are news blogs and websites on the internet.
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Start small
Investing in Cryptocurrencies can be dangerous if you do not know what you are doing. It is very important for you to follow the golden rule of investment: Never invest more money than you are willing to lose. Crypto markets can change very quickly due to their volatility.
We recommend to start with a fixed amount of money and test different strategies for making profit. Stick to those which have proven themselves for you in the past.
Now you know the basics about Cryptocurrency and everything which is important to know before you start. Head over to the next chapter where you will learn about different ways on how to build a budget or if you already have, check this chapter on places where you can buy Cryptocurrency easy and safe!
Conclusion
Investing in Cryptocurrency is not as easy as it seems all the time. Take small steps and only invest what you can afford to lose. Gather as most information as possible before you invest your money, experience is one of the most important good in the Cryptocurrency space!