Trading cryptocurrencies can be a challenging journey for any beginner. More often than not, it’s super easy to get swallowed by the excitement and the hype. And you end up learning valuable lessons the hard way. Below, we discuss several tips to guide and prevent you from making costly mistakes that you would have otherwise avoided.
Seven tips to get started in your crypto journey
Do your research
Numerous brands offer cryptocurrencies. Owing to the nature of digital currencies, scammers are plentiful. And it’s a challenge to tell frauds from legit exchange brands. You should conduct your research and find a trusted and reliable source for your currencies.
If you choose to go blindly into the market, you may end up losing a lot of cash. And that will result in you despising the crypto assets. You should, therefore, only invest in an exchange with a flawless reputation. It doesn’t matter how good the deal sounds. It’s not worth getting scammed over it.
Do you have a portfolio
One thing most investors will tell a newbie is, ‘never invest in just one asset.’ Do you know why?
That’s because the risk is higher in an unpredictable market like this one. Instead, invest in numerous assets and take your time to adjust your positions.
Take baby steps
Start by investing small amounts of cash. It’s not a secret that you might make losses. So, why not only invest what you’re comfortable losing? Although you won’t make losses all the time, you still have a long way to go before learning strategies to reduce those risks.
There are numerous ‘gurus’ on social media platforms. And their trading ideas and strategies may be complex and promise you milk and honey. But these strategies can only end up making your journey more hectic.
Try starting with simple strategies, stick to them, and learn as you go. Remember, there’s no magical strategy that guarantees you will always have returns. Even self-proclaimed experts make losses now and then. So instead of killing yourself trying to grasp concepts way out of your league, take a deep breath and start slowly.
For a start, you can look for strategies that reduce the risks of losses. You can easily find one that’s tried and tested and works for you. A good example is the portfolio indexing and rebalancing strategy.
It’s almost impossible to go online and not find a video or two with catchy headlines of how they made over 100000 with a sure exchange source. These content creators are only looking for starters’ views, and these headlines are just a way of getting them.
If you believe that you can make that kind of money on the first try, then you’re in for a surprise. You can rest assure that longtime investors do make good money but not on the 1st try. There’s no magic in cryptocurrencies, and you should not expect any miracles overnight. It’s one foot in front of the other and nothing less.
And don’t make the mistake of taking loans to invest. You indeed make money by spending money, but only what you have at the moment.
Patience, patience, and some more patience
You not only invest money into cryptocurrencies but also your time. It all starts with the time you invested in learning about digital money to taking the time to read this article. Even more importantly, invest your time to learn the basics first before investing.
But you will need to put more patience before getting out of the market with a success story. You require discipline in sticking to your strategy or plan.
Look for a trusted application with automation tools.
Trading can be exhausting on all levels. Have you ever heard the saying that crypto never sleeps? Well, that’s true. The market is open seven days a week, all 24 hours of it. All-year-round. A little blink and the trading shifts.
The need to continually monitor the market can drive you nuts. So, why not automate your portfolio? As the market grows, so makes applications to make your life as a trader easier. You can research applications that provide these services and take a break once in a while. That’s the only way to keep your sanity intact.
Need help? Just ask
As a beginner, cryptocurrencies can be confusing. The learning never ends, and you may find yourself in a hotspot once in a while. So, why not ask for help? There are numerous groups where traders hold discussions on cryptocurrencies. If you join one of these groups, you’ll be surprised what you can learn.
You can learn new strategies and tips to keep you afloat in the market. As a precaution, though, research on a group or community before joining. That way, you will know what you’re getting yourself into and whether you can trust them.
Cryptocurrency and blockchain technology still has a long way to go. There’s so much more to learn, and that will take time. So don’t be too hard on yourself. Take it a day at a time.