5 Tips Every New Cryptocurrency Investor Must Know

The fact that the number of investors is growing day by day also speaks of the fact that one can make money on cryptocurrencies. This is supported by the fact that there are currently over 34 million bitcoin wallets, and if we include other currencies, we will reach the magic number 50, ie that over 50 million people in the world enter cryptocurrencies. Still, it’s not enough to just prepare the money to invest and think you’ve done most of the work. On the contrary, if you are a serious investor (and we believe everyone is), you must know a few basic things. Well, let’s start from the beginning.

What is cryptocurrency?

Cryptocurrencies are virtual money and exist only in digital form. What makes it different is that it is decentralized, that is there is no central authority. It is difficult to say how many different currencies there are, but it is assumed that the figure is around 1,600. Even those who do not know much about cryptocurrencies have certainly heard of the most famous and most powerful among them – Bitcoin. This currency has seen great growth since 2009 when it was released. However, we should not ignore other, smaller currencies, which can bring solid profits – Ethereum, Litecoin, Ripple, and many others. Transactions must take place via blockchain, which means that there is no third party, and this is exactly what makes the transaction secure.

How can I buy cryptocurrencies and where do I keep them?

You can buy cryptocurrencies in several ways, in exchange offices, peer-to-peer, and the most popular way is through ATM. This is also the simplest way because all you need to do is swipe your credit card and confirm the transaction. This leads us to the next question, and that is – where to store cryptocurrencies? This money, like any other, is kept in the wallet, but since it is digital money, the wallet must be the same. There are two types of nightgowns, and they are hot and cold. Hot wallets require a constant internet connection, so they are often attacked by hackers. On the other hand, we have a cold wallet, which is hardware-software that does not require access to the Internet, so it is safer. But it requires a constant power supply and that makes it a big consumer, and its price is higher compared to a hot wallet. Still, this is about your money and consider this a smart investment.

How do I start investing?

First of all, you need to know that there are two ways to invest in cryptocurrencies, and that is trading and mining. For many people, trading is their preferred option because they can make a profit faster. This is supported by the fact that the value of most cryptocurrencies’ changes from day to day, and there are often several ups and downs in one day. On the other hand, we have mining in which the main role is played by accountants – miners, who dig bitcoins. Mining is a great choice for the patient. Those who opt for this type of investment must know that their chances of earning a significant increase if they join a mining pool.

How do I find the right platform?

You’ve probably already heard that many have been deceived. That is why you must find out about a particular platform before you decide to deposit your money there. All he can do is check the licensing and reviews. There are also differences in the minimum role, which is $ 250 on most platforms. Some platforms allow trading in stocks, which makes them useful to those who already deal with it.

What is certainly important to mention is that there are many trading applications, intended for beginners or people who do not want to sacrifice their free time following the market situation, but leave it to the application which, thanks to artificial intelligence does all the work for them. Namely, studies have shown that thanks to artificial intelligence, these applications detect changes in the market 0.03 seconds before humans, which in this case is more than enough time to make a profit. When choosing, it is important to pay attention to the interface, to make sure that everything is clear and that you will find your way around easily.

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Beware of scams

There is a high probability that you will encounter a series of scams when it comes to investing in cryptocurrencies. That is why it is necessary to be very empty and prevent at least what you can. Since it is known that hackers are constantly lurking and that everyone who spends time online is at risk of cybercrime, consider an online broker a safe option, because it works under strict regulations. Another thing that may indicate that something is wrong is that your network has become much slower. The fact that there is no regulation under which the bitcoin operates makes investing uncertain. Still, everything is fine until some currency comes in competition with the Government.

Final thoughts

Those who are just starting to invest in cryptocurrencies must be told not to allow themselves to be carried away by beginner luck. Another important thing is to pay attention to the minimum stake when choosing a platform, as well as whether the platform offers a bonus because most do. It is also important to know when to stop investing, that is, not to invest more than you are willing to lose. And last but not least, you should always invest in several different currencies, so that in case one loses in value, you do not lose all the money invested.

Follow the situation on the market, because it is constantly evolving and growing. Look at buying a wallet or trading application as a useful investment that will protect your money, and will probably double it very quickly!

Investing, Personal Finance, and How to Make More Money — Faster

Sticking to personal finance goals can be really tough, but the goals themselves are rarely complicated. Here’s what you should be doing to keep your financial house in order:

  • Spend less than you earn
  • Save the difference
  • Invest your savings

Simple, right? Of course, in practice, we have a few more things to talk about.

Budgeting and other personal finance basics

Spending less than you earn can be tough (to be fair, it’s actually impossible for some people — but don’t say that’s the case with you until you’ve tried everything you can to limit spending). The key to keeping your spending in check is to budget. Budgeting is no fun, we know, but it’s the proven way to balance your finances. Reign in spending by identifying discretionary expenses (as opposed to the stuff that you absolutely must spend on, like groceries) and by avoiding toxic short-term debt, like credit card debt.

Create an emergency fund. If you lose your job or encounter a sudden expense, your emergency fund will help you avoid having to take out loans. That way, you can start right back in with our healthy habits when you start earning again.

Once you’ve saved your emergency fund, put the rest of your savings into a savings account with a decent interest rate. If you don’t, inflation will rob you of your hard-earned purchasing power over time. And when you have enough liquid cash in your savings account for any near-term expenses you’re saving up for, start investing!

Why? Simply put, because investing offers you the best possible balance of risk and interest. While stocks can go down, they tend to go up, and your earnings in the stock market will outstrip savings account interest even when you’re very careful about your investing.

Basic investment strategies, safety nets, and more

Being pretty careful about your investing is, by the way, a very good place to start when you’re new to investing. The stock market can offer big profits, but it’s a complex thing, and it is possible to lose money if you’re not careful.

Start simple. Learn how to use a straightforward long-term strategy such as a buy-and-hold strategy. Buy-and-hold just means getting safe “blue chip” stocks, index funds, and other “safe” investments, and holding onto them. Simple, right?

If you invest steadily in the stock market in a diversified way (and those index funds can create diversity for you very easily), then you’ll tend to make money over time. Is the market up? Keep investing. Is the market down? Keep investing anyway. Over time, a basic strategy like this will give you fairly steady results.

You can fine-tune this strategy with the help of a financial adviser. For many people, this is all that’s necessary for a sensible financial future. For others, we have our next section.

Bigger money sooner: more aggressive investment tips

Investing for the long run is a pretty simple thing that anyone can do. But the market doesn’t offer opportunities to slow-and-steady investors alone. There’s a reason that the stock market has a reputation for high stress levels, high stakes, and huge profits (and losses, too). You can get much more aggressive than a basic buy-and-hold strategy.

More aggressive investors won’t just buy stocks. They’ll sell them. That means determining when stocks are at their peak value. If you’re hoping to become a more active investor, learning how to read earnings reports and evaluate things like price-to-earnings ratios is a must.

You should understand the market as a whole, too. “Timing the market” means getting out before big crashes and buying back during down periods. Knowing how to time things right is extremely tough, but advanced math may have answers: some investors are big believers in the Ichimoku Cloud, a complex indicator that measures market equilibriums.

If you’re making trades often, you’ll become what is called an “active investor.” If you trade stocks as your primary source of income and work at it during usual workdays, you’ll be a “day trader.” And if you are any of these things, you’ll need a few things: a great broker, great financial news sources, and a financial safety net that is a bit larger than the average person. So beef up that emergency fund! Your risks are higher than those of the typical investor — but so are your potential rewards. Being an active investor isn’t easy, but it can be immensely rewarding.