In the finance industry, cryptocurrency has become the topic that is discussed the most. And that’s not surprising at all, since, according to Statista, their numbers rose from 66 in 2013 to 6800 in October 2021. The investment in Crypto might be great in terms of rewards but there are a few things for some tips to secure your bitcoin that must be in the knowledge of an investor before he plans to invest.
A large number of people are investing in cryptocurrency just because they heard a success story or they saw any of their friends or family members having a huge gain. If it’s that much easier, why isn’t everyone a millionaire?
If you’re willing to invest in cryptocurrency, you need to consider 5 things that are discussed below.
Never invest more than you can afford to lose
People should be aware of the fact that there are chances of losing everything and they should invest up to a limit that they are not much affected even after they lose that. Initial trades do not put you at the top.
There are very rare conditions when the luck of the beginners also matters. The market is volatile and it is essential to understand a few things that can be learned from live trading. Investment at the initial stage is your tuition as it is an investment to learn cryptocurrency trading. If you miss it, take it as an expensive lesson.
Conduct your own research
Self-made experts and gurus of cryptocurrency are not lacking and they always claim to have a secret formula to success. But success does not have any shortcut. Before investing your personal money, all you have to do is not listen to anybody until and unless there is an authentic financial advisor.
Before investment, you have to conduct research on your own and you have to do it thoroughly when there is a coin that is newer. For this purpose, you must be aware of the methodology of conducting research that you can also learn from YouTube tutorials. Once you have learned, you can make potential investments.
Use common sense: if it sounds too good to be true it usually is
Be very careful if you are being promised 100X benefits on a coin that is newly introduced. Certainly, there are situations in which the early adopters get themselves involved in a new coin which makes its value skyrocket and one gets surprising returns.
There exist a lot of investors who lose everything in gambling in the hope that somehow they will get those huge returns. So, if you see that a coin is producing handsome returns, withdraw your initial amount of investment and invest it somewhere else. This is something that rational investors like to do. It isn’t necessary that every coin will win, so they put their investment somewhere else if the coin goes down.
Never act based on Fear of Missing out
New currencies start with a boom. In the early stages, PR campaigns are run and celebrities are also endorsed for this purpose. Such a situation results in creating panic among investors and they start investing without any research just because they become prey to FOMO (fear of missing out).
The reversing results can do severe damage and lead you to make irrational decisions. Most of the PR is bought and there exists no concept of fact-checking. Moreover, endorsements of celebrities are also purchased and their only purpose is to benefit the coin.
Safeguard your keys
The thing that is vital is the protection and security of your personal keyphrase because this is the one and only way that you can get access to your cryptocurrency. In case of losing keys, you would not be able to access them.
Another crucial fact is that your crypto can be stolen if somebody is having your key phrase by accessing your account. Do not keep it on your PC. The best way is to memorize it or just write it down and keep it in protection. In order to keep it more secure, write it more than once and on different papers and lock them up.