Have you ever been or thought of going to an unknown country? I'm very sure the first thing that would probably come to your mind is doing some research about the land, know the language of communication, the way you are expected to behave and the risks you must avoid. After you must have done your research and you are convinced, the first thing you will undoubtedly do is go to the nearest bank to do some money/currency exchanges to the local currency. A couple of dollars can buy you great shoes in the States, but if you want to enjoy and have fun in Nigeria, then you will need some cool cash in naira!
The same logic is applied to the world of cryptocurrency; you have to exchange your currency in a new land. Be it Litecoin, Bitcoin, or even Ethereum. They are examples of foreign currencies too, that work within certain online societies in a very precise context.
There is something known as "shared trust". To exchange any type of currency, it must be generated on shared trust. With the way we value dollars and naira, it simply means that we can buy goods and services with them.
Now, the question is, are you looking to dabble in the world of crypto investing? If your answer is yes, then you will need to put some criteria into place before investing your money.
Below are some important points you must really pay rapt attention to before you can invest your money into cryptocurrency.
#1. ONLY INVEST THE MONEY YOU CAN LOSE
This is one of the most important tips to consider before investing your money in cryptocurrency. It is essential to note that you are expected to invest the money that you don't need in your day-to-day living. Don't be like my friend, Kolade that invested his school fees in cryptocurrency, and when the time comes for him to get his return to pay his school fees, he was left alone with his eyes peeled.
To invest in cryptocurrency, you must be very patient. The price of Bitcoin and cryptocurrency is trusted to be unpredictable. So, just in case the market is not looking so interesting, getting a return on your investment can take longer than you really expect. You will now have to go through periods of losses.
Thus, you should only invest the money you can afford to lose. By so doing, you are staying away from your investment, and you won't be under any influence of emotions, and you will be far away to becoming a Kolade!
#2. ALWAYS KNOW THAT CRYPTOCURRENCY CAN BE USED FOR FRAUDULENT ACT
Just in case you are not aware, money laundering is one of the challenges in the cryptocurrency world. Some people who want to remain anonymous and avoid regulations from banks or governments will use cryptocurrency to make shady deals on the black market. Now hear me as I tell you this: I don't mean to say that it's everyone who is involved in cryptocurrency that is a fraudster. Only that I'm emphasizing on the fact that, if anyone wants to commit any fraudulent act and look for a way to avoid being caught, the crypto world is the best place for them. There is a lot of scams in cryptocurrency, and as a newbie in the world of cryptocurrency, it is best if you can be particularly vigilant about this and avoid them. So, watch out!
#3. DIVERSIFY YOUR INVESTMENT
So many people will say, "at least I have more than enough. Let me just invest every so-called capital", forgetting that anything can happen at any time. It's a great idea to invest all of your money, but on the other hand, it can be risky.
Diversification is the key to any good investment plans. And it's great when you apply it when you are investing in cryptocurrency too.
Maybe you have a lot of money to invest, never forget this saying that states "do not put all your eggs in one basket". Imagine the basket falls to the ground, all your eggs will break, and you will lose it all. It is, however, appropriate to apply this same sense to your investment.
You don't have to put all of your money into cryptocurrency. You can put some in real estate if you are capable. You can invest in different cryptocurrencies apart from Bitcoin maybe that is the only name you are familiar with. There is Ethereum, and there is Litecoin and many more. Invest in diverse currencies; there are thousands of options. It's best to maximize your investment as you secure your currencies.
#4. STUDY THE SUBJECT AHEAD OF TIME
As a newbie, interested in investing in cryptocurrency, it is always advisable to train, at least a minimum before even thinking about investing in cryptocurrency. Let me ask you: even though multitudes had advised you or still advising you to deposit your money, do you think you are really interested in investing in a subject you know little or nothing about? Imagine you buy a house you've never been to or visited? A used car without its papers? Would you take an annual basketball membership without knowing what services it offers or what it looks like?
If the answer to the above questions is no, then why would you invest in cryptocurrency without educating yourself about it?
Apparently, you don't have to be a crypto-experts before you can invest in it, but at least give yourself a time to understand in broad terms what it is all about.
#5. KNOW THE RIGHT TIME TO BUY CRYPTOCURRENCIES
All through history, cryptocurrency has in general augmented in value at a very fast leap, with a very slow, steady breakdown following until it becomes stable.
Cryptocurrencies are well-known for its instability, a two-edged sword that has made so many investors into millionaires and billionaires within a very short period of time while turning some to Nillionaire along the way.
If you are really interested in investing in the world of cryptocurrency, then the apparent question I will ask is, do you know the right time to do so? No, right? But I'm glad to inform you that it's a necessity.
According to research, cryptocurrencies are diverse from old-style resources when we are talking about elements that regulate price fluctuates.
Based on the Economists verdict on their research, they verified that crypto, for instance, Bitcoin, compared to other shares and merchandises, comprehensively depend on force. This obviously shows that if Bitcoin is doing great, there is a probability that it will continue to be so in a very short-term.
However, according to this research, being a newbie, it's advisable to purchase the prominent digital currency only if the value increases by more than 20 per cent within a week.
#6. KNOW HOW TO SECURE YOUR CRYPTOCURRENCY
My last tip is about you securing your cryptocurrencies. It is always advisable to not store your cryptocurrency on exchanges. Instead, you should store it on what is known as "wallet for cryptocurrency".
For instance, with anything called valuable, cryptocurrency scammers are everywhere, looking for your cryptocurrencies to devour, so securing your cryptocurrencies is necessary. You have to be watchful and careful!
If you have a conviction to invest in cryptocurrency and you see yourself purchasing a noteworthy amount of it, I will advise that you make use of cryptocurrency wallets that are being constructed with security in mind.
Cryptocurrency should only be kept in wallets that you know and can control.
Because cryptocurrency is internet currency, they are even stress-free to rip-off and much tougher to return and trace. Even though cryptocurrencies are secured, it can only be as secured and safe as the wallet keeping them
To invest in cryptocurrency is not a joke, and to secure your investment must be your most serious main concern.
NOW YOU CAN INVEST WITH CONFIDENCE
Congratulations to you for reading to this extent. Now we are at the end of the article. I hope you have been able to learn one or two things from the important advice above?
It is very crucial to understand how things work in the world of cryptocurrency, before even making attempts to invest in it.
Especially Bitcoin, cryptocurrencies are still new, and it might take a little while to really understand its true impact in your world.
You should take your own time to learn more about cryptocurrencies generally, how it works, how it can be secured and how it is different from fiat currencies. You should not take the above information as investment advice only, but for a piece of overall knowledge. Always do your own research before investing in any form of cryptocurrency.
I wish you luck on your way to investing!
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