Investing in cryptocurrencies might be enticing but these types of investments are complicated, and achieving success is not nearly as straightforward as it may seem.
Before investing your first dollar in crypto, prepare yourself by doing these things.
Be prepared for volatility
When you buy crypto, you're signing up for volatility. It should not come as a surprise if you see your crypto portfolio double in value or fall by half in days or even hours.
While this type of gain in only a week may sound great, losing almost that much in the same time frame can be quite the shock as well. Make sure that you can endure these ups and downs. You can't avoid volatility and you can better prepare yourself for it. Making emotional decisions in crypto investing never results in anything good happening. Even beginners should know how to manage the risk of volatility.
Start off with a small investment
Putting too much money into crypto could derail your progress if you suffer a major loss. This is why you should dip your toe into cryptocurrency by starting with little money.
Also, it will let you test how you feel about this volatility with real money on the line.
As soon as you stop being stressed out by the ups and downs, you can potentially add more to your crypto portfolio. On the other hand, if you find the volatility too nerve-racking, you can keep a small investment for fun or sell it and go to other investment areas.
Keep a Ρonstant Ρheck on its performance
Crypto is probably not the type of investment that you can set and forget. Sure, you don't have to be glued to your computer screen 24/7 tracking the performance of your crypto holdings, but crypto investment needs some deal of your time. For the most part, you'll be making minor adjustments. But you should review your crypto holdings regularly in case the prices of cryptocurrencies have changed enough that it doesn't align with your objectives anymore.
Adding coins to your portfolio could mean that you rebalance your holdings at a minimum. The more complicated your investing strategy becomes, the more you should review it. While this might seem to be a thing for short-term investors, long-run investors can also follow these things to keep a healthy investment.
Pick the right cryptocurrency exchange to start
Cryptocurrency exchanges let you buy, sell, and trade cryptocurrencies. But that doesnβt mean that any cryptocurrency exchange is a good one. Many beginners wasted significant amounts of money and time dealing with incompetent, buggy, or simply expensive exchanges. It takes time to learn how to separate the wheat from the chaff, but these tips will help you.
Before jumping into any random exchange, someone recommended, you should consider many factors. The most important ones are exchange security, legal aspects, fees, history, and user experience. Finding the best cryptocurrency exchange for you can take some time and effort, but it is totally worth it.
Hope this short guide helps you to start crypto investing safely.
Where to start? Many crypto investors started with EvBlock.
EvBlock is a crypto-to-fiat exchange from Switzerland (Reg N. CHE-265.995.382). EvBlock crypto exchange allows you to buy and sell cryptocurrencies with euros and pounds. EvBlock offers high security and friendly support for crypto investors. Visit our EvBlock site to learn more https://evblock.com/
No matter where you will start, we wish you luck and success in your crypto investing journey.