Nearly 17 percent of Americans have invested in cryptocurrency as of 2021. That trend will continue to skyrocket as influential people, like Elon Musk, continue to spread the news that they’re also buying crypto.
Although some people have become rich from investing in crypto, that’s not always the case.
You’ll need to educate yourself before buying cryptocurrency as this market is quite volatile, and it is possible to lose money. Today, we will share five tips that will help you when investing in crypto.
Do Your Own Research
It’s easy to get swayed into buying a specific crypto coin when you read headlines saying that someone became a millionaire overnight. Even though the most popular coins are Bitcoin or Ethereum, there are hundreds of other currencies.
As you can guess, some of them are only trying to steal your money, so to avoid scams, research what the cryptocurrency you’re investing in is planning to do in the future.
Choose the Right Cryptocurrency Exchange App
Buying cryptocurrency is now as easy as using an app on your phone. You can even start investing in crypto with as little as $1 since many of these exchange services give you that option.
However, keep in mind that these cryptocurrency apps make money off of “gas fees” (fees to compensate for the computing power needed to process and verify transactions), so research which ones charge the least.
Be Ready for Losses
It’s a well-known fact that cryptocurrency is a highly volatile asset. With that being said, you need to be ready to see your gains turn into losses overnight. When that happens, be sure to remember to HODL (Hold On to Your Life) and not sell in a panic.
Get Your Sources Right
Since buying crypto is increasingly popular, many entities take advantage and publish articles related to cryptocurrencies to get more views. Often, these articles are not from reputable cryptocurrency sources and are merely personal evaluations. If you read a news headline stating to go all-in when buying a specific altcoin, be sure to investigate thoroughly before buying it.
Avoid Falling Into FOMO
FOMO (Fear of Missing Out) is what got many people into investing in crypto. Unfortunately, these kinds of people are the ones that have lost the most in the cryptocurrency market as they went all in and lost everything. So don’t fall into peer pressure, and do your own investigation.
Buying Crypto Has Never Been This Easy
Over the years, buying crypto has become quick and easy. But, of course, the ease of investing in crypto can be dangerous to those who don’t do their research. In order to avoid that, be sure to follow these tips, as they can help you save lots of money when buying crypto.
Are you a crypto-enthusiast? If so, be sure to check out our other articles related to cryptocurrency. Without a doubt, you’ll find them as informative as this one.