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The hottest news today is Cryptocurrency, many people get rich because of Cryptocurrency, more precisely with Bitcoin (BTC). Not only that, Altcoins like Neo and Bitcoin Cash (BCH) made tens of thousands of people get rich in one night.
So what do we need to know before we buy Cryptocurrency?
- Invest what you can volunteer to lose
This is a route / rule for investing (not just for crypto). I can say that the way to invest is almost the same as gambling, the difference is that you can reduce your chances of losing by doing your "PR". What's more with the Crypto world, this gold coin-coin is very volatile and can go up or down with 1 news and they could be no price at all (my own experience).
The amount you can invest must be different from other people, some say 10 million is enough, some say 20 or 30 million, and so on. No one is sure how much is enough to invest in Crypto, which is definitely a higher risk equal to higher return or the greater the risk, the greater the change.
- Diversification
Don't put all your eggs in one basket. We already know what is meant by this saying. If you invest in one coin, just say Ethereum, you can lose all your money. Ethereum is the best example because 8 months ago Ethereum prices ranged from USD $ 1000 but now only USD $ 190.
If you are in a situation like the one above, be patient and wait for prices to go up and sell. But no one knows when this will happen. Read the news every day because one news can change all prices.
- Do 'Homework' before investing
Always know what you are investing, not because your friend tells you that the coin must go up and you invest in the coin. It's a stupid thing, if you don't know which coins are good or not, always hold Bitcoin (at the time of writing) because I can say Bitcoin can't die because Bitcoin is a fully decentralized coin.
Because of the many coins and fake ICOs circulating now, you must be careful. Never invest something that you don't have control, especially with cryptocurrency because you don't know what the big companies are planning.
- Be careful with Fraud
Because the crypto world is still in its early stages, so many people experience this opportunity to cheat because many people still do not understand how to play cryptocurrency. Although it's hard to guess which ones are original or not, you can wonder in their telegram group.
- Create wallets and exchanges
The wallet you need is MyEtherWallet for a paper wallet to hold your ERC-20 coin. And for sure, you also need to create an account in several exchanges because it is a way that can withdraw digital money into fiat money, on the contrary, you can buy cryptocurrency there too. You can visit several exchanges such as IDEX, Binance and Kucoin.
There are many other exchanges that you like Okex, Switcheo (neo-based exchange coins) but they don't need to be used for beginners. If there is a coin that you invest into Binance or Okex, immediately dump (sell) the coin because the price will soar for a few weeks.
- Vocabulary
In the world of Crypto many people use English and you have to know what it is to understand what is meant. Example: Whale, FOMO, Bull, etc. I have made vocabulary that is often used. Bookmark the page.