5 tips for new cryptocurrency investors
New in the cryptocurrency space? Read this.
The cryptocurrency market has been particularly attractive to a large group of (young) investors in the past. Rightly so: The returns can be absolutely insane. A young generation can count itself rich with cryptocurrencies. But not all cryptocoins change into new Bitcoins... What should you pay attention to?
To successfully invest in the cryptocurrency market, you need some rules. These 5 tips can make everyone a crypto millionaire:
1. Do your homework
DYOR, Do your own research is a term that is very common language in the cryptocurrency space and with very good reason. Buying a cryptocurrency because the price goes up is the worst strategy that exists.
Cryptocurrencies can rise quickly, but also fall quickly. You have to know what you are doing, you have to do your homework on the cryptocoin that you are buying.
There is a lot of information available about the cryptocurrencies, but only a few actually use it. This undoubtedly results in huge losses for some people in the long run.
2. Be careful
Only invest what you are prepared to lose; cryptocurrencies are still very risky investments. The numerous success stories can encourage you to invest large amounts, but it is better to start small.
There are several strategies that work on the cryptocurrency market and that in the long term almost guarantee success, but going all-in is not part of this.
3. Diversify
Never put all your eggs in one basket. Most crypto enthusiasts buy 1 cryptocurrency while hundreds are available. By buying only 1 cryptocoin, your entire investment depends on the development of 1 project.
Diversification is much better! The more cryptocurrencies you buy, the greater the chance that you will have a winner. A well-diversified portfolio will also perform better over a longer period, the decrease of one cryptocurrency will be compensated for by the increase of another cryptocurrency.
4. Secure your cryptocurrencies
Just as you have cash in your wallet, money in your savings account and perhaps some valuables in a safe, you have to protect your cryptocurrencies in the same way.
I recommend buying a Nano S Ledger to store your cryptocurrencies in a safe way. Important: Only buy this product from the official website, it is not safe to buy this product of eBay or any other kind of reseller.
Official website: https://www.ledgerwallet.com/
5. Prepare yourself for a wild ride
The volatility on the cryptocurrency market is insane. Decreases of 30% to 50% or more are very normal. You must therefore be able to stay calm when the prices are falling, don't get emotionally attached to your investments. You should not become too euphoric when something rises and not panic when something goes down.
Those who can't go against a wild ride, should not be looking into the cryptocurrency market. This market is a rollercoaster, enjoy the ride; up and down.
Thank you for reading.
Feel free to upvote, comment, resteem and/or follow my blog @maxdigi if you like my content. I greatly appreciate your support!
Cheers,
MAXIDIGI
Rule #6 - no lending platforms. Lol
Hahahha true story! Bitconneeeeeeeeeeeeeeeeeeect....
Carlos Matos is still a legend though, so much people lost money in this ponzi scheme scam, but we all love Carlos lol <3
When one door closes another one opens. Hard lessons to learn. Good judgement comes from experience. Experience comes from bad judgement. Lol
Warning: RIP Headphone users!
Good tips for beginners :) haha ive actually lost soooo much USD worth of coins and tokens, like well over 10,000 usd with cryptos, but only ever lost 200-300 usd from trading and just selling when they go down.
The biggest thing in the beginning where to loose the most is on SCAM WALLETS lol.. i lost shit loads of btc, well enough to make anyone pat me on the back anyway.. and coins on scam wallets lol.. hihi oh boy i learnt , and now im in it now for the next couple of years, just working purely for Crypto! Nice to see a post from ya maxi!
Thanks for the support bro! Feels good to post again and have some conversations on this platform.
Wow I didn't realise you lost that much money with crypto, I have also had a few bad experiences and you are absolutely right that scam wallets or virtual wallets of bad ICO's are the biggest money stealers... I hope you can earn your money back over time and still have a decent cryptocurrency portfolio... Our moonride will come again, it only takes time and patience. Again thanks for the support, going to check out your blog in return right now ^^
I do still have a vast variety that will only get vastER lol. I have now loaded up most onto the nano s and will just forget about them and concentrate on work and buying the BTC, would be silly to not buy that again before autumn
I an going to cheque the ledger out, ThAnx for the tip didnt know it exsist.
Why it is not safe to buy a Nano S Ledger on eBay or amazon?
Scammers these days go to great lengths; I have read a few stories of people who bought a Nano S Ledger from eBay or Amazon and one day all their cryptocurrencies were gone.
If the Nano S Ledger you are buying has already been used, chances are that your private key has been compromised and saved by the previous owner. This gives him/her the possibility to steal your cryptocurrencies without even having that ledger in his possession.
If you set up the Nano S Ledger correctly it should generate a new private key and the problem above shouldn't be an issue but better safe than sorry, right? This is why I recommend only buying from the official website where this risk does not exist :)
Many thanks, for the reply and for the suggestion!
My pleasure, anytime amico!
Well said there, maxdigi! :) I have followed all these rules well because I do a lot of research on cryptocurrency on YouTube and read about them on blogging sites like steemit to learn more. :) I shall resteem this xD This is very useful information for newbies on cryptos. I also own a Ledger Nano S, I did bought mines brand new on eBay but lucky for me, mines came out legit from a seller that has very good reviews from other buyers across the board. :)
Thanks for resteeming denox! I really appreciate it and oh good to hear that there are at least some honest people reselling Nano S Ledgers, be careful though, it would suck if the reseller appears to be a scammer eventually and steals millions of cryptos on sold Nano S Ledgers lol; maybe I'm a bit too paranoia there :)
You have every right to be bro, because there are a lot of Ledger Nanos with already made Recovery Sheets ready to steal your cryptos once you put some in :P I have seen those scams on eBay and YouTube videos about it.
Very well written and sound advice. Hmm about the more than 1 coin thing how many would you say is the safest to go with for diversity? I feel like maybe at most 2 coin types on hand will do or maybe 3 but not so many at once.
Another great post ! Thanks again 👌
Again my pleasure, thank you for reading :)