Investing In Crypto: Educate Yourself To Buy The Best Digital Assets On The Market
People’s interest in cryptocurrencies in on the rise, according to the latest statistics. More and more enthusiasts are considering entering the crypto game, especially after the bulls returned in the market this year.
2018 was not the best year for the digital coins mainly due to the fact that Bitcoin lost about 85% of its value. But experts said that even though the year was a bearish one and the trend persisted for a long time, last year was a period in which the crypto market has matured and separated valuable projects from the not so powerful ones. This year, things have been going much better, and with the bulls back in the market, Bitcoin managed to surge by 100% since April, and more achievements have been marked in order to take the digital assets towards the important goal of mainstream adoption.
All this triggered more interest from people in Bitcoin and altcoins, and there are now a lot of enthusiasts who are considering investing. But in order to be successful in the crypto space, there are a few elements that you need to teach yourself and a few things to avoid.
Tips for the beginner crypto investor
Bitcoin and altcoins could one day become a substitute for fiat currencies, so it’s essential to ride this wave of innovation rather than fight it.
Consider the risks
First of all, before hopping into the crypto space, you have to consider taking calculated risks. It’s essential to understand the volatility that characterizes the crypto market. You should only invest as much money as you can afford and own as much crypto as you can afford to lose.
There are other coins besides Bitcoin
It’s understandable that you want to own BTC because it’s the most important crypto in the market. But an investor’s portfolio should include other coins as well, and that’s why it’s important to analyze other projects in order to find out which are the best cryptocurrencies to buy. Bitcoin is the dominant coin, but there are definitely more altcoins to consider with other use cases as well. This takes us to the next step
Consider the utility of a coin
Before investing in a particular currency, make sure to check out its whitepaper and find out what that coin brings original to the crypto space and what are its use cases. The utility is essential in a digital asset. Also, make sure to look for a properly written whitepaper.
You should mark the value that it can bring to the crypto ecosystem.
Look for signs of a scam
And last, but definitely not least, you should check for signs of potential fraud. We recommend that you analyze the team behind the projects and make sure that its members are trustworthy with real credentials, make sure that there’s no pyramid scheme resemblance, and investigate the case of Bitconnect for a better understanding of a crypto scam.
When is the best time to buy?
You may believe that the best time to buy crypto is when the market is falling, but there’s this saying: never catch a falling knife. The best time to invest in crypto is when the prices mirror stability at a relatively low level.
How to store crypto?
You should definitely keep your digital assets off the exchange, especially considering the vast amount of hacks that have taken place in the crypto space. There’s a long history of hacks and bankruptcy, and we recommend that you analyze the Mt. Gox case to understand the issue better.
It’s true that not all exchange wallets are risky, but it’s best to store the crypto by yourself in a crypto wallet.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.