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Nine Things to Know Before Investing in Cryptocurrency
What to Know Before Investing in Crypto
Are you itching to buy Bitcoin, but know little about how cryptocurrencies work? Stop right there! Digital currencies can be an exciting investment opportunity, but new investors risk losing their capital if they are lured by scammers or back a new cryptocurrency without a track record.
Here, we'll go through nine things to know before investing in the cryptocurrency market.
1. Does the Crypto Market Close? Timing Is Everything
Digital assets are extremely volatile — and cryptocurrencies such as Bitcoin and Ethereum can fluctuate wildly with little notice. Generally, crypto investors try to "buy the dip," meaning that they'll purchase more of an altcoin when its price falls.
Crypto markets are open 24/7 all year round, unlike traditional equities markets. Hooray! This means you can "buy the dip" or dump tokens as and when you like, on centralized crypto exchanges (CEXes) or decentralized exchanges (DEXes).
2. You Can Buy BTC With Old-Fashioned Money
Cryptocurrency exchanges such as Coinbase and Binance are tailored to new investors. They allow you to buy virtual currencies using your debit card, credit card and bank account. Financial institutions such as PayPal are also planning to get involved, if you believe the well-reported rumors.
3. Watch Out for Scammers
On social media, you may see a lot of hype around an investment strategy that promises huge returns from obscure crypto assets. Others make exaggerated claims about how the price of Bitcoin will rise. Sadly, there are some dishonest actors in the crypto world — and billions have been lost to Ponzi schemes and exit scams.
4. Build an Investment Strategy
Successful investors devise a plan for their cryptocurrency assets. This can involve setting a limit order that means their Bitcoin will be automatically sold when prices hit a certain level. Some crypto exchanges also allow you to copy the moves of established traders in the crypto market.
5. Is It Too Good to Be True?
Scammers often thrive on creating a sense of FOMO, a fear of missing out. Think carefully before making a cryptocurrency investment, and remember: if something seems too good to be true, it probably is. The cryptocurrency industry is full of impartial reviews and fiercely independent news sites that can help you make an informed decision.
6. ICOs? Do Your Own Research
Initial coin offerings, where companies create and sell new cryptocurrencies, were very popular in 2017. Although the market has cooled, some investment opportunities still exist. This can be extremely risky — and if you're going down the ICO route, make sure you read white papers thoroughly, and examine whether their business actually has a need for blockchain technology. You'd be surprised at how many startups try to jump on the bandwagon.
7. Beware of FOMO
In a bull market, popular cryptocurrencies can see their prices rise sharply and quickly. Proceed with caution — buying into BTC at high prices could lead to nasty losses if it corrects.
8. Pick a Good Crypto Exchange
Look for a crypto exchange with strong levels of liquidity, an array of crypto assets, resilient security measures, and reliability. @Binance Customer Support has a page for those buying Bitcoin for the first time which ranks exchanges by their ease of purchasing crypto and provides more information about their regulation and accepted methods of payment. You can find it here!
9. Protect Your Private Keys
Last but not least, remember that you need to keep your cryptocurrency safe. One of the best ways to do this is through a hardware wallet, as this will mean your crypto assets are held securely — and far, far away from an internet connection.
$BNB $BTC
#BitcoinGoogleSearchesSurge
Are you itching to buy Bitcoin, but know little about how cryptocurrencies work? Stop right there! Digital currencies can be an exciting investment opportunity, but new investors risk losing their capital if they are lured by scammers or back a new cryptocurrency without a track record.
Here, we'll go through nine things to know before investing in the cryptocurrency market.
1. Does the Crypto Market Close? Timing Is Everything
Digital assets are extremely volatile — and cryptocurrencies such as Bitcoin and Ethereum can fluctuate wildly with little notice. Generally, crypto investors try to "buy the dip," meaning that they'll purchase more of an altcoin when its price falls.
Crypto markets are open 24/7 all year round, unlike traditional equities markets. Hooray! This means you can "buy the dip" or dump tokens as and when you like, on centralized crypto exchanges (CEXes) or decentralized exchanges (DEXes).
2. You Can Buy BTC With Old-Fashioned Money
Cryptocurrency exchanges such as Coinbase and Binance are tailored to new investors. They allow you to buy virtual currencies using your debit card, credit card and bank account. Financial institutions such as PayPal are also planning to get involved, if you believe the well-reported rumors.
3. Watch Out for Scammers
On social media, you may see a lot of hype around an investment strategy that promises huge returns from obscure crypto assets. Others make exaggerated claims about how the price of Bitcoin will rise. Sadly, there are some dishonest actors in the crypto world — and billions have been lost to Ponzi schemes and exit scams.
4. Build an Investment Strategy
Successful investors devise a plan for their cryptocurrency assets. This can involve setting a limit order that means their Bitcoin will be automatically sold when prices hit a certain level. Some crypto exchanges also allow you to copy the moves of established traders in the crypto market.
5. Is It Too Good to Be True?
Scammers often thrive on creating a sense of FOMO, a fear of missing out. Think carefully before making a cryptocurrency investment, and remember: if something seems too good to be true, it probably is. The cryptocurrency industry is full of impartial reviews and fiercely independent news sites that can help you make an informed decision.
6. ICOs? Do Your Own Research
Initial coin offerings, where companies create and sell new cryptocurrencies, were very popular in 2017. Although the market has cooled, some investment opportunities still exist. This can be extremely risky — and if you're going down the ICO route, make sure you read white papers thoroughly, and examine whether their business actually has a need for blockchain technology. You'd be surprised at how many startups try to jump on the bandwagon.
7. Beware of FOMO
In a bull market, popular cryptocurrencies can see their prices rise sharply and quickly. Proceed with caution — buying into BTC at high prices could lead to nasty losses if it corrects.
8. Pick a Good Crypto Exchange
Look for a crypto exchange with strong levels of liquidity, an array of crypto assets, resilient security measures, and reliability. @Binance Customer Support has a page for those buying Bitcoin for the first time which ranks exchanges by their ease of purchasing crypto and provides more information about their regulation and accepted methods of payment. You can find it here!
9. Protect Your Private Keys
Last but not least, remember that you need to keep your cryptocurrency safe. One of the best ways to do this is through a hardware wallet, as this will mean your crypto assets are held securely — and far, far away from an internet connection.
$BNB $BTC
#BitcoinGoogleSearchesSurge
Avertissement : comprend des opinions de tiers. Il ne s’agit pas d’un conseil financier. Peut inclure du contenu sponsorisé. Consultez les CG.