Top Tips to Know Before Starting Cryptocurrency Trading

Caution first:
The crypto market is just a decade old and is still in its early stages. Hence, it is much more volatile and still lacks any form of regulation from authorities. This makes it nearly impossible to recover any investments in case of fraud or hacks. To add to this, it is very easy to make a cryptocurrency that looks legitimate but turns out to be a scam.

Invest only what you can afford to lose:
Ensure that your long-term financial security is taken care of in the form of Fixed Deposits, Equity Mutual Funds, Debt Funds, necessary insurances, emergency funds, etc. If you still have any surplus after this security, you can consider investing in cryptocurrencies as this is money that you can afford to lose and remain unaffected financially.

Do your research:
It is easy to blindly invest by taking tips from friends or acquaintances. Yet, know that this is your money and no one will come to your rescue in case the investment fails. Hence, it is better to understand the cryptocurrency market first before investing any money into the same. Read about the dominant cryptocurrencies such as Bitcoin, Ethereum, Tether, Polygon, and more. Learn about their use cases and potential before making any investment decisions.

Use a trusted exchange:
It is not uncommon for cryptocurrency exchanges to get hacked or scam investors. Ensure that you make your account with a large exchange that is historically credible and has insurance in place in case of a hack.

Learn the technicalities:
If you are more serious about cryptocurrency investments, it makes sense to learn about how to create your own digital wallets or purchase a trusted hard wallet to safeguard your investments. Learn about liquidity mining, staking, decentralized finance, and more to broaden your scope of knowledge.