The world of cryptocurrency is without a doubt striking, and new. Being like that, many are the people that want to enter and invest in some of the most known cryptos, or in some new ones. Nonetheless, the very fact of being new plays against them, because many still don’t know how to enter in it. Still, there are some adventurers that take the iniciative to enter into this fascinating world. So, for you, the adventurer, in Onix we have decided to explain to you 10 tips that you must follow to invest in Cryptocurrency. This way, you’ll be able to grow and be innovating in your financial methods at the same time. We hope it helps.
The first thing we must do entering something we don’t know, or know little, is to read. With reading you don’t only will understand better which is the best cryptocurrency to invest in, but also understand better how this world is managed. With this, you’ll have a general knowledge that’ll help you in the future when you wish to increase your investment, change your cryptos, sell them, or who knows, becoming a trader. From what cryptocurrencies are to which is the best exchange, all this documentation will help you to decrease the risks that you think can exist when investing in cryptos.
We know there are well known cryptocurrencies nowadays. Bitcoin, Ethereum, Dash, are known names by many, but these aren’t the only cryptocurrencies that exist. Before entering this world, you must know at least the basic of some coins, and not necessarily the big ones. Coins like Litecoin, or like Onixcoin, have gained a name and are looking to create a space in this world for themselfs.
What we said before doesn’t mean you have to trust in all the new coins, or that you have to be far away for the considered “old trusty”. Nowadays, it has been seen how cases of scam with the creation of fake “cryptocurrencies” have been on the rise. Being that we’re talking about money, that you take care of your investment from cases of fraud is both necessary and smart. Reading news accounts, or comments made in the exchanges, aside from something we’ll explain below, will help protect you from those fake cryptos that can harm you.
Not all cryptocurrencies were created for the same thought, function or purpose. This way, reading the project behind each cryptocurrency you’ve considered a candidate is a necessary point. Bitcoin from beginning was created to be a decentralized payment method, Ethereum was created thinking of smart contracts, Onix was created to be a loans system. It’s important for many to take into consideration if the project is something innovating and disruptive, of if it’s competition of something existing.
In the second case, the beast is to read in depth the project, and investigate the adventages of one over the other for the lifes of those who invest in them. This way, you can choose something innovating, or more advantageous for you.
Now that you’ve read and understood more about the cryptoworld and cryptocurrency extensively, it’s time to make a decision. Here, the best we can do is to choose a crypto that molds to your needs, wishes and even your own persona. That coin that caught your eye, which with you feel identified, that fills your needs, gives you more benefits and has been verified and genuine is the one you must place your trust and invest.
In this point we’ll give a recomendation. It doesn’t matter if a cryptocurrency is more showy than other, or if it has a better graphic design of visual identity as others. In this case, the most important and necessary must be to fill your needs, to be beneficial and trustworthy. Little will matter how pretty the visual identity of a crypto is if ends up being a decrease of your capital.
Not always choosing one crypto and investing all there is the best choice. The most recommendable in the case of having started in the cryptoworld is to invest little amounts in many cryptocurrency. This way, if any of the ones you chose falls in the market, your lost will be minimun, and it can happen that any of your other options has an increase. This decision will not only help you to save your investment, but also knowing the real behavior of cryptocurrency.
One of the points that can alter a cryptos price (not the only one) es the variability of emission that has. What’s an emission policy? Well, the amount of cryptocurrency that’s estimated to emit in total. This way, just like Bitcoin has a limit of 20 million bitcoins issued, many other have a limit, or they’re of indefinite emission. Knowing the emission possibility of a coin can tell you the offer that this can have. Being that cryptos are managed in a certain way by offer and demand, it’s possibility of offer can alter its price.
Even when it can be tempting when you see you’re winning, investing all your money abruptly can be a beginners error. We have to understand that the world of cryptocurrency, just like the stock was at its time, it’s a changing world, where whats on the rise one day can lose its price the next one. So, the best we can do is invest up to the amount where you’re comfortable losing. This way, we’re taking care of ourself from the cryptos volatility.
Like in any case of finances, the best we can do is to manage our own movements. This because, being such a striking world, delivering your recovery frase, keyword or authentication to someone else can be risky. The best that we can do in these cases is to mantain and manage our own movements and ask foradvisory when needed.
Just like we said previously, the protection of your investment is important. And in the case of passwords, seeds or recovery frases of your wallet, protecting it and keeping it save is the best way to protect your investment. Imagine you lose it, you won’t be able to recover your wallet even if you wanted to, and you’ll lose your investment. The best recommendation is to save it written on paper, and not to digitize it in any way or form. This way, the possibilities that other people have it is less.
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