Cryptocurrency for beginners: Top tips for first time investors
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Cryptocurrency has risen to prominence in recent years, as well as becoming a popular investment strategy. Whether it’s Bitcoin, Ethereum or Dogecoin, there are plenty of examples of people making money through digital currency.
But for newcomers, knowing where and how to begin can be confusing, putting many prospective investors off before they have even started.
In order to help those new to cryptocurrency make successful first steps in the market, the team at www.cryptonary.com have put together their top tips:
Do your research
“Whether you’re new to the cryptocurrency space, or have been working within it for a while, you will need to make sure you’re constantly doing your research.
“If you’re new to the space, it might be worth signing up to an educational group or online course to learn the basics.
“You need to make sure that you’ve done enough research so that you’re both comfortable and confident with any decisions that come your way.”
Decide how deep you’re willing to go
“The world of cryptocurrency is a lot bigger than it appears from the outside.
“Before you venture in, decide how much exposure you’re willing to have in cryptocurrencies as an asset class.
“From here, you can plan your next steps and the exchanges that are right for you.”
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Find a cryptocurrency exchange
“Finding a cryptocurrency exchange is not as easy as registering at the bank.
“You need to make sure that not only the exchange is right for you and your needs, but is also legal and regulated in the country you’re operating from.
“We recommend the cryptocurrency exchange FTX. Once you’ve found your exchange, set up an account and go through the ‘Know Your Customer’.
“Do a test deposit with a small amount of capital to familiarise yourself with the process.”
Decide whether to be passive or active
“Decide whether you’re going to be a passive or active investor early on.
“As a passive investor (one who buys, holds, and has a long-term view of investment), a support group will allow you to keep up to date with relevant information.
“An active investor (one with multiple cryptocurrencies who actively adds to their portfolio), would also benefit from a group as they’ll allow you to exchange opinions, information, and advice with other members.”
Have a plan
“Finally, make sure you have a plan and try to stick to it as much as possible.
“Be aware of the volatility present in the market, and make sure you’re prepared for it. Stay cool, calm, and collected throughout the process and with all of your decisions.”
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