- Find reputable news sources
There will always be lots of opposing opinions about cryptocurrencies, as well as the people who own them. Many think that crypto is just a fad, and those who engage in them will only find disappointment.
If you are already convinced that this can benefit you, then just stick to sources you can trust and avoid the noise of the non-believers. If you want to be a successful investor or altcoin owner, stick with the facts.
- Be prepared for volatility
It is not a secret that cryptocurrency is still not as stable as the standard currencies—just go back to that inflation of Bitcoin to almost $20,000 apiece less than three years ago. You have to be agile with your decisions and think about what will be best for the current amount of assets that you have.
Even experienced crypto traders and owners still have no luck with mastering the trends of these virtual coins, so do not be shocked if you find yourself in the same boat.
- Don’t t place all your eggs in one basket (diversify)
Investments are unpredictable; even those that seem to offer infinite positive returns can come crumbling down under certain economic conditions. Cryptocurrencies are even more unpredictable. Be careful to place all your eggs in one basket, as you may end up losing then gaining. Do your research and see which coins are thriving well, with the most-used cases that you can benefit from. What you will use your crypto for will be up to you—so choose your assets wisely.
- Learn the uses of both hot and cold wallets
While crypto exists digitally, you can still have a way of storing them online and offline—through hot wallets and cold wallets. If you are a beginner, the ease of access to hot offline wallets will prove to be more useful and versatile. Cold wallets, however, do offer more protection from hackers and other miscreants. As part of your journey into diversifying your assets, learn to use both types of wallets.
- Be vigilant
While cryptocurrencies have higher safety ratings than traditional money, it still pays to be on the alert. If you want to trade or own large amounts of altcoins in your mobile wallet, you have to be prepared against the risks and vulnerabilities that you are opening up yourself to.
Try to study different ways of handling your newfound assets and see how you can manage your money in a way that is both responsible and convenient for you.
- Expect the unexpected
However, significant volatility does exist in cryptocurrency markets which cannot be ignored. Experienced cryptocurrency investors are accustomed to huge price swings that you often don’t find in traditional markets. By mentally preparing for these unfavorable, and occasionally terrifying, investment performances, the intelligent crypto investor will be able to act rationally instead of emotionally in times of unexpected price drops.
- Don’t Buy Simply Because the Price is Low
Most beginners make one common mistake: buying a coin because it’s price seems to be low or what they consider affordable. Take, for example, someone who goes for Ripple instead of Ethereum simply because the latter is much cheaper, The decision to invest in a coin should have very little to do with its affordability but a lot to do with its market cap
- Don’t fomo!
FOMO is an abbreviation for the fear of missing out, easy as that
- Don’t buy shit coins
- Play it on the safe side
Buy large cap coins like bitcoin or ethereum which aren’t t as volatile as other coins, they also have better foundations for a strong future