I’m going to share ten tips for getting started and having
success with crypto investing. Once you know some of these basic tactics,
you’ll be able to invest more confidently and profitably.
Tip #1: Establish Your Emergency Fund First
While crypto funds are easy to convert to USD, you’ll want
to avoid any situation where you have to sell crypto before you’re ready.
It’s best to have your finances and traditional investments
in place before taking on crypto investing. Mainly, you’ll want to ensure that
you have an emergency fund that you can easily access in case - well - in case
of a financial emergency.
Tip #2: Create Investment Goals
You will need to think about your short to long-term
financial goals before getting into cryptocurrency. Establish your financial
goals and then decide which of those goals fit best for cryptocurrency.
For example. if you’re saving to purchase a house in 3 to 5
years, cryptocurrency might be a good option. You’ll just need to monitor your
investment, especially as you get closer to purchasing your home.
Tip #3: Start Small
It is advisable to start small in crypto investing.
Cryptocurrency has a learning curve, and in many ways, it’s not like
traditional investing. Crypto has its own words, phrases, tools, and strategies
and operates through exchanges. You can gradually increase your crypto
investments as you learn and have some success.
Tip #4 – Start By Investing in Just a Few Coins
If you’re just getting started with crypto investing,
consider purchasing just a few of the more well-known coins. These include
Bitcoin, Cardano, and Ethereum. While all crypto can be volatile, these
better-known coins tend to be a bit less volatile than others.
Of course, you can expand your crypto portfolio as you have
success and grow your crypto knowledge.
Tip #5: Learn the Technical Analysis Basics
Cryptocurrency is volatile. You’ll need to learn a few basic
strategies and create a plan for your investments. By analyzing the activity of
your assets, you will have a better idea of what their value might be in the
future. Technical analysis uses real-world data to help predict changes in the
market.
Start with looking at factors such as volume, movement, and
inherent value. Technical analysis uses analytic charts and tools to evaluate
the patterns of digital currency.
Tip #6: Avoid Over-trading
After you learn the technical analysis basics, you’ll find
that each cryptocurrency exchange (trade) requires some level of research and
analysis. You’ll want to avoid over-trading your cryptocurrency portfolio as
this could both damage your holdings and become extremely time-consuming.
Tip #7: Avoid Under-trading
Under-trading is the opposite of over-trading. While it’s
not illegal or unethical, it can ruin your chances of making money with
cryptocurrency investing.
Usual under-trading traits are:
• little to no trading exercised
• small positions held
• over-analyzing the investments
One of the usual reasons people under-trade is fear - fear
of losing money or making a mistake. However, educating yourself about
investing in cryptocurrency and having a trading plan will give you the courage
and confidence you need.
Tip #8: Avoid Emotional Trading
Just like other investments, trading cryptocurrency can be
emotional. Like stocks, options, and traditional currency trading,
cryptocurrency can be fast-paced. Some investors hang onto crypto, hoping it
will gradually increase in value over time. Others trade during volatile
sessions in short-term day trading.
Just keep in mind that planning is a vital part of
successful trading. Have your short and long-term goals in place, have an
emergency fund in place, and be ready to adjust your financial plan when
circumstances change. Most importantly, arm yourself with knowledge of the
technical analysis basics.
Tip #9: Pick a Reputable Exchange
Trading exchanges are online marketplaces where you can buy,
sell, and trade your cryptocurrency. Some of these platforms have just a few
coins to buy and trade while others have large lists of them.
Cryptocurrency pairs (also called “trading pairs”) are an
important feature to consider. This is a feature of a trading exchange in which
you can quickly and seamlessly trade one cryptocurrency for another. For
example, Bitcoin and Ethereum are trading pairs.
Also, consider security. Security in a platform is always
critical. You’ll want to ensure that logging into your account requires
authentication measures beyond just entering a password.
Tip #10: Find a Cryptocurrency Mentor/Advisor
You need expert advice when you are learning a new and
challenging investing vehicle like cryptocurrency. Cryptocurrency advisors and
mentors can help flatten the learning curve However, care must be taken when
selecting a cryptocurrency mentor. Anyone can call themselves a
cryptocurrency mentor.
Here are a few guidelines to follow when looking for someone
to help you learn the cryptocurrency investing ropes:
• Make sure you know their true identity
• Ask for references
• Avoid anyone who guarantees that you’ll make money
• Avoid people who want the money sent by gift card or other
untraceable methods
• Avoid anyone who wants control of your funds rather than
letting you do it yourself
• Avoid anyone who promises you free money to get started.
Invest in Cryptocurrency on Binance Now
