If you think that Crypto is Superman’s dog, then there are a few things you need to know about cryptocurrency before you invest. Happily, you can find some of the most important in the post below. Keep reading to find out more.
You can lose as well as gain money
Just like any other type of investment, you can lose money as well as gain it when you invest in crypto. What this means is that your approach to investing in this way needs to be the same as any other type of investing you do. This means you need to make sure that you do not invest more than you can afford to lose. It also means that you need to be objective when you make your investments and not let your emotions govern your decisions when it comes to investing or withdrawing your investments.
It’s best to pick major coins
Another important aspect of crypto that you should remember is that it tends to be better to invest in the major and most stable coins like Bitcoin, Ethereum. Indeed, staying away from things like meme coins is a sound investment strategy, as while some people very occasionally strike it rich this way, most do not, and it’s more like penny stock gambling than a legitimate investment strategy.
You may need to sell as well as buy
Next, another thing you need to know about crypto is that you may need to sell your coins as well as buy them to make money. This is because if you buy a coin for a low price, and its value goes up, you can sell it for a profit. It also means that you can liquidate your investment, which means you can access the true cash value to be spent or saved elsewhere.
Indeed, crypto liquidity is a big deal when investing in this way because coins and trading are all done virtually. Happily, by using a trustworthy crypto exchang,e you can sell your coins for cash that you can use elsewhere.
You need somewhere safe to store your crypto
There are two things you need to remember here. The first is that you need somewhere safe to store your crypto. Since crypto is digital, this means that under your mattress isn’t an option, so instead, a hard drive wallet that can be separated from your computer to prevent hacking is key.
Secondly, you must remember the passcode for your crypto storage! Otherwise, you will end up like one poor investor who was paid in Bitcoin around 20 years ago and now has assets worth over 820 million dollars if only he could get out of his wallet.
Get to grips with the tech
Last of all, before you invest in Bitcoin, it can be a good idea to do some research into how the blockchain technology behind it works. The good news is that there are plenty of helpful resources on this topic that you can use, including the video that you will find below.
