Are you taking your first steps in the cryptocurrencies market and don't know where to start? You got it! In this article we will give you some valuable tips on what you should do before investing!
Firstly educate yourself!
You must know what you are investing in! At this point you should bet on education. The more you know, the better you will be able to evaluate the project. If you don't understand something, don't be afraid to ask. There are discussion groups devoted to blockchain and cryptocurrencies technology, e.g. bitcointalk forum. Sometimes it's worth paying attention to what other people have to say.
Before investing in a given project, ask yourself what problem it solves, what stands out from the competition, what is its mission and plans for the future, who is behind it and whether there are any suspicious controversies around it.
Also focus on security issues, as the future of your assets depends on them. If you don't take care of your cryptocurrency wallet, or if you betray your private keys to someone, you may lose your money forever!
Remember also to never spend on investments the amount you are not able to lose !
Avoid "earning online" methods
This type of "business" has nothing to do with real investments. This is how financial pyramids are often promoted. They are looking for naive people who are ready to join the scheme, blinded by the vision of quick profit. Their lifespan is usually short, although there have also been those who have been extorting funds from users for years (e.g. OneCoin). Remember that in such cases, technology is not behind the project but good marketing. So it has no intrinsic value. The profits generated come from new participants of the pseudo-project. Do not trust such schemes, you never know at which level of the pyramid you will find yourself.
There are also proposals to register on various platforms. But think, is it worth selling your personal data to an unknown company? You are never sure where company will use them.
We should also mention exit scams. Their only purpose is to obtain a certain amount of money from users and then escape from the market. It happens that such projects illegally use the image of public figures: celebrities, politicians or athletes to gain trust. Do not be fooled by loud headlines and profit guarantees.
Read also: How to recognize shitcoin?
Learn to control your emotions
Emotions are the biggest enemy of every investor. Giving in to them can lead you to ruin. At times when the market is flooded with panic, it is worth keeping a cool head to focus only on rational decisions.
If you have chosen your own investment strategy, stick to it. Don't give in to FOMO (fear of not buying when the odds are up, be afraid of not leaving your position when the market is pouring blood). Investment is about selling your assets at a profit, not a loss.
Learn from your mistakes. Learn from your successes and failures.