What You Must Know Before Investing in Cryptocurrency

Cryptocurrency trading and investment is not a simple affair. Coin prices swing to and fro, never staying too long in one position for investors to get comfortable.

The wise investors seek to keep abreast of their earnings and losses using a crypto profit calculator and other tools. Unfortunately, even the wise cannot see all ends. Although using a crypto profit calculator is a great way to stay in the green at all times, it’s not enough.

Many crypto enthusiasts have delved into investing in the past, only to come out with nothing. The genuinely unlucky fellows are in debt today due to bad decision-making and insufficient knowledge of the market.

Even if the experience is the best teacher, there are some grave, costly errors that you should avoid in crypto investing. Of course, you’ll still have to learn on the go, making small mistakes and learning from them. However, there are some essential tips to know before putting in real money.

While veterans commit these errors it’s about knowledge. Cryptocurrency and blockchain technology are still very new innovations. Whatever groundbreaking developments you see today it’s still in beta.

So, new knowledge keeps coming up every day. And, it’s essential to keep abreast of what’s vital, to avoid financial ruin, and make the best of daily opportunities.

Without further ado, let’s closely examine the most important things for you to know before investing in cryptocurrency:

There are demo accounts

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With online sports gaming and betting, there are free demos or trial games for you to test out before you begin to risk real money.

This is really helpful, as it not only provides you with a first-time fail-safe, but it exposes you to the workings of the system before you put in fiat currency.

The same thing applies to cryptocurrency Investing. Before you begin trading, take the time to do apt research on the platforms that allow you to create a demo account for trading.

Platforms like Coinbase allow you to do this. So, even if you’re excited to start earning in crypto, you should resist the urge to jump straight in and create a trial account. Spend some time to get a feel for the market and everything it offers.

Then, when you feel confident in your starter abilities, you can go ahead to put in real money and start trading in earnest.

Safeguard your wallet keys

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In cryptocurrency investing, your private keys are like your ATM password. If it gets compromised, you’re done for. And, you should be ready to kiss goodbye to all your hard-earned funds.

Not funny, isn’t it?

Of course, it’s not a laughing matter! There’s nothing worse than spending hours managing your crypto assets, monitoring the charts, enduring dips, and speculating price movements, only to lose your tokens to an online scam.

And there are a lot of scams around. However, there are some simple ways to spot them. Never give out your private keys for any reason, even if it seems logical to do at the time.

It’s not even ideal for you to use hot storage- it’s all online, after all. Any platform or computer program that works online is susceptible to hacks.

For this reason, you should be wary at all times, jealously guarding the close-kept secret that is your private crypto keys.

Although it might be pretty steep, seeing as you’re just getting into crypto investing and haven’t started making money, you should invest the required dollars in acquiring a cold crypto wallet.

This way, you can store your keys safely online, only using them when you have transactions to make.

Research the coins before you splurge

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There are tons of altcoins out there. As a newbie investor, Bitcoin might be a bit out of reach for you. But, you can also earn a small fortune by trading relevant altcoins in a timely manner.

There are popular altcoins like Solana, LUNA, Dogecoin, Litecoin, and BSV. However, for every meteoric-rising Solana, there are hundreds of scam projects.

These developers rip people off by creating a seemingly noteworthy project, organically generating speculation to increase interest and investment potential. And, of course, gullible investors buy into these projects and subsequently lose a lot of money, much to their despair.

These regrets and losses can be avoided by taking the time to research the viability and genuineness of new projects adequately. Read the whitepaper, and learn all you can about the developers. This way, you’ll not only be able to spot scam projects as they launch; you’ll also be able to buy into potentially rewarding projects long before they go mainstream.

Be ready to take some losses

There was never a successful cryptocurrency investor who didn’t take some losses, often heavy ones at that.

At every point in your crypto investing journey, you’ll make losses. As there’s no specific way to predict market outcomes, you can be sure of making some losses sometimes.

The critical thing is to make more profits than you make losses. This way, you’ll stay in the green, and you can continue to rake in steady profits, no matter your losses.

That is not to say that regular losses are expected. Suppose you’ve been investing for a while, and the deductions from your crypto investment calculations infer that you’re running massive losses. In that case, it might be time to reconsider your overall strategy.

If not, you’re at risk of losing your entire investment.

The market is highly volatile

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The ups and downs of the cryptocurrency market are the stuff of legend. Prices go up and down every time, and there’s no fool-proof way to make accurate predictions.

Buying at floor price is highly recommended. But, even as you do so, remember that nothing guarantees that a token is selling at its lowest possible price. This is why you have to adjust your strategy to suit market realities.

It just might be that the token will still dip further, and those who buy it then will make more profit than you.

Conclusion

Cryptocurrency investing can be very profitable if done right. All you need are the right tools, and great starter advice, such as you’ve been given in this article.

Also, a platform like CoinStats is highly recommended, as it is an all-in-one platform that gives you access to all the required tools, including charts, live price updates, and relevant crypto advice.