There's one topic I constantly get questions from friends, family, and people I have just met about and that is bitcoin and cryptocurrencies. After doing research on the space for a while now, I thought it would be good to share some simple guidelines with everyone who is wondering what they need to know before getting into crypto investing.
I will keep this short and straight to the point with just the most important points.
Don't invest more than you're willing to lose
Do your own research (DYOR) or get help from someone who has done his/her own investigations
If something sounds too good to be true, it is.
Crypto will go through bubbles and bust. Cryptocurrency is defintely not a get rich quick scheme, and the crypto market will recover from those downfalls.
There is no central authority, so you will have to be diligent and always ask yourself, "Is this real?" "Who benefits from what I am doing now?" "If something happens to this project, who is responsible for it?". Those are the questions you should be asking yourself
Don't FOMO buy. Only invest in what you are willing to hold for months/year or forever.
Keep control of your private keys. You don't own your cryptos if you do not own your private keys. Protect them like cash in the bank and never give them to someone else under any circumstances.
Your public keys (where you get paid and where you receive cryptos from other people) should be secured and well known to no one but you. Public keys are not private keys, just like PIN numbers at your bank aren't secret either.
Keep your funds safe by using hardware wallets like Ledger Nano S or Trezor (I personally use the Nano S). Never let your coins out of your sight unless you know they are safe.
Never store your cryptos on an exchange unless it is a very short-term trade that you do not mind losing. The reason exchanges are targeted by hackers is because that is where people store their coins the longest without moving them to wallets.
Make sure you have backups of your private keys and seed words for your hardware wallet. Write them on paper and store them in a safe or two. If you lose your private keys, good luck recovering those cryptos.
Only trust addresses and information are given to you by the team of the crypto project. If something looks weird or sounds off, it probably is.
Google is your best friend when it comes to researching cryptos (and everything else in life). Don't get sucked into clickbait and false information spread on social media platforms like Reddit.
Cryptocurrencies are not backed by anything physical, like gold or silver, so their value is based purely on supply and demand.
Cryptocurrencies are digital and cannot be counterfeited, but they can be stolen if your digital storage is not secure.
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