Since its debut, cryptocurrency has skyrocketed, crashed, got back up, and continued to grow. Yet, what exactly is crypto?
Like “real” money, people can use crypto to buy everything from consumer products to designer-brand clothes. Expect the list to grow as more retailers add Bitcoin and other cryptocurrencies to their payment systems.
Bitcoin is the most popular type of cryptocurrency because it was the first. Now, investors are buying Ethereum, Tether, Solana, and more exciting currencies. Investors can play crypto-based games to earn even more.
Start with these simple tips for investing in cryptocurrency to kickstart your journey.
1. Be Realistic About Risk
Investment strategies require some level of risk.
You’ve heard the term “big risk, big rewards.” While this approach has some truth, you need a large safety net to cushion your loss. As a new investor, you’ll inevitably take a loss, so assessing your risk capacity is critical.
There are still ways to participate despite a lack of capital. Some platforms let users earn free crypto coins in exchange for learning about crypto, doing simple tasks, or playing games. Some apps dispense crypto rewards for using their platforms, often providing free coins at sign-up.
The “learn and earn” programs are ideal for beginners. Plus, every investor should understand their investment! Find a program that can give you some real hands-on experience.
Automation also manages risk as investors participate more heavily in the market. Apps use algorithms to buy and sell at programmed times automatically. You can also set other parameters to manage automated trading.
2. Watch Your Investments Like a Hawk
Cryptocurrencies are notoriously volatile markets. One Elon Musk tweet can send crypto prices stumbling. You’ll need an app that monitors prices in real-time, including automated buying and selling features.
These market apps also track the following data:
- 24-hour percentage increase
- Seven-day price fluctuation
- Crypto market cap
You can also join crypto forums and communities to get more tips and strategies. Traders also do something called “whale watching.” First, you’ll need to know how crypto wallets work.
3. Wallet Tips for Investing in Cryptocurrency
When a crypto investor says, they’re “whale watching,” they’re tracking wallet addresses of some of the most prominent cryptocurrency investors. Fellow investors can see Bitcoin wallet addresses on exchange platforms.
If you see significant upticks in a particular coin, there’s likely a “whale” buying. Whales have the power to influence coin prices. Both individuals and companies can be whales.
Every investor needs a crypto wallet to start.
Wallets hold the “keys,” enabling transactions. Your crypto finance platform of choice is an example of a Bitcoin wallet. This is where you’ll store all your coins for safekeeping.
If you want to cash out your crypto, you’ll need a wallet with available Bitcoin ATMs. You can even host your own crypto ATM to make extra income.
Start Investing in Bitcoin (the Right Way!)
Are you ready to build your Bitcoin wealth?
Remember to manage your risk, choose a reliable wallet, and watch the markets closely. Discover even more tips for investing in cryptocurrency.
Follow the blog for more.