Investing in cryptocurrency can be tricky for anyone not familiar with the process. However, by following certain tips and tricks, and performing due research, one can master the realm of cryptocurrency in no time at all. The very first thing that a hopeful investor should do is to choose a crypto exchange to begin their crypto transactions. For investors hoping to invest in Bitcoin, CoinSpot is the best bitcoin exchange in Australia.
Which crypto should beginners invest in?
For starters, investors should invest in the most popular cryptocurrencies which are Bitcoin and Ethereum. Both of these are pretty safe, stable and high-earning cryptocurrencies, and can also be thought of as “blue chip” stocks. Once investors have a safe backdrop, they can start investing in new and emerging cryptocurrencies that are somewhat risky yet probable for high gains. One of such cryptocurrencies is Dogecoin which has been helping its investors gain insane profits over a period of time. However, such cryptocurrencies are recommended for investors who are looking to trade actively. For individuals hoping to be passive investors, Bitcoin and Ethereum are possibly the best options. Irrespective of whether you are an active investor or a passive one, the key here is to be mindful of the percentage each crypto holds in your portfolio, and it is advised that out of your entire portfolio, 50% should be held for blue-chip cryptocurrencies.
Important tips to remember
In addition to the above, there are certain tips that fresh investors should follow which include:
1. Don’t invest all your money at once
In addition to not keeping all your eggs in one basket, it is important that you don’t purchase all your eggs at once. In order to maintain an average entry price, you should invest money over a period of time and not at once. This is because the marketing of cryptocurrency moves at a pace much higher than that of a traditional market. Hence, this makes its gains as huge as its losses. Crypto is a highly volatile market and fluctuates multiple times in a day, let alone in a week.
2. Do your research
If you want to trade successfully and make profits, you should spend considerable time learning the process for investing in crypto. In addition to this guide, you need practical market knowledge to invest in the cryptocurrency market: do some research and make investment decisions on your own.
3. Don’t share your credentials with anyone
As it goes for any other trading or digital finance platform, don’t share your credentials with anyone. Maintain a strong password and keep changing it on a regular basis to avoid being a victim of fraud or digital theft. You may also wish to opt for two-factor authentication as an extra security measure, and never save your credentials on any device – not even on your personal smartphone or PC. While ensuring your trading account’s safety goes without saying, many people tend to take this for granted and hence maintaining account safety is emphasized.
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