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The journey of investing in crypto has to start somewhere and as a beginner who is interested in investing, you might be overwhelmed by the different cyptocurrencies you are hearing about and the throwing around of certain terminologies; what the heck is a bear market, you might be asking, and is a bear coming to get me?.
Now, as someone who is new to crypto and is looking forward to becoming a cryptonaire; (check out my wordplay there), how can you do invest and do it successfully?
Well, I will be giving you a beginner's guide to investing in crypto as a beginner myself, so without further ado, let's get into it.
STEPS TO NOTE BEFORE INVESTING IN CRYPTO.
Before going into the steps, I will advise you to have your finance in order and this includes having savings and an emergency fund, just as a backup plan.
After having that, you can go into these next steps;
Step one: Do your research.
Before going into any investments, researching is very essential, and just like you will research for a business, you need to also research before investing in crypto because there are so many of them.
Step two: Don’t invest based on the past.
A lot of beginners are getting into crypto right now to buy the dip of certain currencies that were up in the past but, this can go either way; it can fall more or rise, so while investing, don't be biased.
Step three: Be prepared for volatility.
Crypto isn't a bed of roses so when investing, be ready for rises and falls, AKA. Bear markets and bull runs.
You can literally invest in something that could give you millions in minutes and that same thing could drop to zero in seconds.
Step four: Risk management.
This simply means being prepared to pull out or lay it all out because if you do not have a process to mitigate risk, you might lose it all.
Step five: Invest what you can lose.
When you start investing, you need to invest money that wouldn't affect you if you lose it, because there is always a possibility of that.
FINALLY
Investing in crypto can be very complicated but it can also be a life changer so do your research and be prepared for anything.
Posted Using LeoFinance Beta
Posted Using LeoFinance Beta
Nice one. Keep enough for rainy days too as you prepare for volatility. I have lost even on Hive by not planning the future properly
This is very true.
Lost on hive?
Can you enlighten me more this please
I used my money as capital to buy Hive and removed the money after it fell to deal with lives expenses
Oh, sorry about that.
Thanks for the information
It's all good. I have made it all back now and I am taking life slowly now
That's nice, easy does it.
Have a wonderful day ahead 🤗
You too!!
If only I had known about all these before making my first crypto mistakes...
As a beginner, even in any thing at all, one needs to chill long enough to learn how to not make mistakes. Many just want to jump and reap. It cannot always be rosey, especially with crypto. One needs to be resilient, especially in the stormy times.
Exactly, a step at a time is very essential or else mistakes will be made.
You are very correct about this.
There was a time I would have fallen victim of some certain coins like that too but thank God I was very patient before jumping into it.
I am glad you took your time and didn't fall victim.
Am glad too