It is clear that there have been so many challenges in the crypto world especially for beginners, many have found themselves hating crypto because of the difficulties they face and even find themselves losing their money unexpectedly! Today I will discuss some of the steps that will help a beginner avoid major crypto challenges.
There are many things that are important about this, but for today I will talk about the most five important things that will enlighten the beginner in a big percentage;
- Introduction to blockchain & cryptocurrencies.
- Fundamentals of trading and investing in cryptocurrencies.
- How to protect your cryptocurrencies.
- Frauds and fake projects in the crypto world.
- Blockchain applications reviews.
1. INTRODUCTION TO BLOCKCHAIN & CRYPTOCURRENCIES.
This is the first thing you should do as a beginner in blockchain technology, you must learn the fundamentals of blockchain first to understand it in detail and to know what you are going to be involved with, you will also need to learn the fundamentals of cryptocurrencies to understand what they are and how they work. Blockchain has a lot of features and a wide technology, so without understanding it first then you will face major challenges that will discourage you early on.
As I told you that blockchain technology has many things including cryptocurrencies, so you will need patience, discretion, commitment, and regular study to prepare yourself to become a blockchain professional and cryptocurrencies stakeholder.
It will take time, but work hard at this first step to make sure you learn and understand these things;
- Blockchain technology.
- Blockchain fundamentals.
- Blockchain applications.
- Cryptocurrencies fundamentals.
There is a lot to learn in this first step but make sure you know those four first because if you know that you will be familiar with blockchain and cryptocurrencies by more than 80%. You can learn through YouTube tutorials, Blockchain communities, and on some learning platforms such as Udemy and so on.
2. FUNDAMENTALS OF TRADING AND INVESTING IN CRYPTOCURRENCIES.
Too many people have been complaining that there is no profit in trading crypto or investing in crypto [often beginners] they complain because what they relied on before they start trading and investing was different in reality! The problem is that most beginners like convenience, i.e. they find it difficult to learn the basics about trading and investing for at least a year and then have 80% of profiting and 20% of losing, instead, they learn for days/ weeks and then they get only 20% of profiting and 80% of losing!
So beginners should be very careful at this point! It is better to spend a few months or even a year studying but later they are more confident of making a bigger profit than the loss. You can find almost all cryptocurrencies from Coinmarketcap and Coingecko [you can trade any coin/token, but as a beginner, I recommend dealing with the top 100 first].
In this second step, do your best to make sure you understand these important things;
- Technical analysis on crypto markets.
- Cryptocurrencies analysis.
- Types of cryptocurrencies.
- Fundamentals of crypto trading.
- Fundamentals of crypto investments.
Make sure you read carefully all the basics of trading and investing in crypto because you will be able to understand the pros, cons, and risks involved in investing and trading crypto. There are always pros and cons because the markets for most cryptocurrencies are volatile!
3. HOW TO PROTECT YOUR CRYPTOCURRENCIES.
This step is also very basic to learn! Many people have been losing their crypto by ignoring some of the key factors in securing their coins. We can store our coins in wallets or exchanges, but before storing we must consider the safety of those parts where we store our coins. Always make sure you keep your coins in good wallets that are highly secured and have good reviews [there are wallets of different types] here are the most used wallets. Similarly on exchanges, there are so many types, there are over 300+ exchanges [I recommend the first 100 for beginners].
Each wallet and exchange has its own security features, but always make sure you keep your coins in a wallet or exchange with at least two of these features; 2FA, OTC, Multisig, and KYC. But the most important thing is to keep your Private Key safe because if you lose the Private Keys of the wallet you stored your coins, then you will have lost your coins!
Important things to understand in step 03;
- What is a Private Key?
- What is Multisig?
- What is 2FA?
- What is OTC?
- What is KYC?
Therefore, make an effort to understand the basic things of step three. If you keep these things in mind you will be protecting your coins for more than 95% in wallets or exchanges.
4. FRAUDS AND FAKE PROJECTS IN THE CRYPTO WORLD.
You have to be very careful in this fourth step. The fact is that the more profitable a business is, the greater the risk of fraud and deception of all kinds! This is the case even in the crypto world. In blockchain technology, there are so many open source systems especially on the DeFi side, and that is why we see a new project every now and then! It has become very easy for anyone [even a fraudster] to make fake coins by copying and pasting the solidity code of any legitimate project through GitHub repositories and Gists and then changing very few items such as token name, symbol, total supply, and decimals.
Too many people have lost their money on fake ICOs thinking they are buying the right tokens for a particular project when they are buying fake tokens without realizing it! And that is why we always need to know the Contract Address of the correct token from the relevant project leaders so that we do not waste our money. Contract address is very important to know because a scam can create a token with the same name as the legit token, but the contract address must be different!
Focus on these things in step four so that you can avoid fraud and fake projects in the crypto world;
- Request the contract address of a token from the project team.
- Research the team behind the project that you want to buy their token.
- Read the project whitepaper before purchasing its token.
- Do not like to follow the offers you receive in your email(s) [follow up information from project leaders only].
So before you buy any token in private sales or ICOs make sure you know the correct contract address for that token. Also, make sure you do research to find out which team is behind the project that you want to participate in the sale of its token, often scam projects do not have a public team.
5. BLOCKCHAIN APPLICATIONS REVIEWS.
As I told you that blockchain technology has so many elements in it, so there are so many systems with different functions within the blockchain technology. There are so many systems apart from wallets and exchanges, you can check some here. In short, there are blockchain systems for currency reviews, exchanges reviews, wallets reviews, projects reviews, smart contracts reviews, and so on! I will not be able to finish them here if I list them one by one, so the best way is to visit google [or any browser you use] and type what you want for example "defi projects reviews" and you will see many reviews systems such as DeFi Rate, DeFi Review, and so on.
So before you invest in any blockchain project it's better to find reviews of that project/ token first so that you can be sure of what you are diving into, otherwise, you will lose your money in fake projects every single day!
Keep these in mind when looking for reviews of any blockchain project;
- Always do your own research first [take your own risk!].
- Find reviews in popular sites like DappRadar, DeFi Rate, and so on.
- Ask for other people reviews in popular forums like Bitcointalk, and etc.
- Compare reviews, eg; 5 reviews for one project from 5 different review sites.
NOTE: It doesn't matter where you find the review of the project you need, but learn to do your own research as well! Because if you believe in every review and at the end of the day you get a loss, there will be no one to blame because you will have believed everything yourself and suffered a loss yourself! So always make your own research apart from other reviews.
Conclusion;
If you are a beginner in the crypto world, please consider these five basic things because they will help you a lot in your crypto journey. If you liked this article and think it might be helpful to others, then please share! Thank you so much for your support and for reading my article.
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@leofan
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