If you’ve heard about cryptocurrencies and are starting to pay attention to them, we bet you’ll be glad you read this. And even if you’re a pro and know someone interested in digital assets because they heard on TV or at a local bar how they could get rich fast trading Bitcoin, share this article with them.
With that, let’s jump right into the three vital things to note before buying your first cryptocurrency.
1. Invest what you’re comfortable losing
No, this is not to say that cryptocurrencies are gambling tools. While we’d love for you to spend tons of cash on our trading exchange, understand that crypto investments, just like any other potentially high return venture, are pretty risky. Here, your only guarantee is volatility.
With most exchanges being unregulated, save for a few like NEXT. Exchange, you want to work with a licensed trading partner to guarantee the security of your investment.
Asset prices will swing wildly from time to time. Hence, it won’t be wise to bet your entire life savings on cryptocurrencies.
2. Do your homework, thoroughly
With crypto, you don’t have a choice but to research like your life is pegged on it because, in essence, it is. Those that have survived the turbulent highs and lows of digital assets will tell you that research is fundamental, so spending hours learning about an asset is never an option. Our blog section offers some excellent learning materials to get you started.
Also, consider joining mailing lists and crypto forums to help you understand what’s going on in the digital currencies world at any particular time. These forums and subscriptions contain priceless snippets of information that can save your entire fortune from being wiped out. Whichever path you choose in this regard, make sure that it aligns with your research and learning goals.
3. Too good to be true? You’re right; it probably isn’t!
Much like Wall Street, the cryptocurrency arena must be approached with the caution it deserves. Dozens of people each week promise how their tokens or coins will give Bitcoin a run for its money, and the only way for you to authenticate their word is through research.
They say buyer beware, but we dare say borrower beware. Don’t fall for those platforms offering abnormally high leverage options. Of course, that will juice up the profits if things go well for you but if it’s the other way round, well, let’s just say they’ll have a field day with your hard-earned money. We’re not suggesting that leveraging is awful. We only ask that you take calculated risks, which takes us back to the first lesson: don’t risk what you can’t afford to part with.
In closing, no one can get it right consistently, regardless of their investment prowess. However, through continuous learning and practice, one can quickly become a force to reckon with in the trading space.
If you still have questions about starting your crypto trading journey, do shoot us an inquiry, and we’ll help out the best way we can.