5 Tips for Getting Started with Crypto

If you’ve gotten this far, hopefully you made it through getting started posts & are ready to take the plunge into crypto. That being said, before you make your first move, you must understand that buying crypto is volatile, and unforgiving. Let’s be honest, it’s been likened to the wild, wild west. Or better yet, think about the craziest roller coaster that you’ve ever been on? The ups, the downs, twists & turns… and yes, the occasional feeling of getting tossed around in multiple loop de-loops.

Trading or buying cryptocurrency is a little different than what you see in the stock market. It’s a complex process that requires you to do some homework in studying the past to prepare for the future. You don’t want to learn lessons the hard way & wind up on the outs with your crypto assets, or worse yet, without any assets at all.

So as Your Crypto Guide, here are some important tips for helping you get started with cryptocurrency.

1. What Kind of Investor are You?

Your investor profile is a snapshot of who you are as an investor. Do you like to take risks, or are you more conservative? Do you want returns fast, or are you looking for long-term stability? Are you a beginner or a seasoned expert? These are all things you should determine before you get started so you can craft a strategy accordingly.

There are many ways to get some clarity on your investor profile. A quick google search will point you to any number of short quizzes that will help you determine where you are with things like risk and deciding how aggressive you want to be. While your investor profile may very well change over time, it’s not uncommon to start slow as you’re learning in the beginning, and then get more aggressive over time.

2. Understanding the Terms

If cryptocurrency is new to you, you need to get familiar with the language:

• Blockchain. Blockchain is a system to record cryptocurrency transactions. It’s essentially a public, continuously updated ledger that eliminates the need for a third-party intermediary. All modifications are recorded in real-time, and changes are completely transparent to everyone who views it. It’s like accessing a shared document where contributors are from all over the place and everyone is contributing.
• Peer-to-peer purchasing. P2P purchasing is a cornerstone of the crypto movement, empowering buyers and sellers to connect directly without the need for middlemen like banks or governments.
• Crypto Wallets. Crypto wallets allow you to send and receive digital currency and monitor their balance. Wallets can be either hardware or software, though hardware wallets are considered more secure.
• Exchanges. Cryptocurrency exchanges are websites where you can buy, sell, or exchange cryptocurrencies for other digital currencies or traditional currencies.

3. Find a Trustworthy Crypto Exchange

As a beginner, it’s especially important to buy your cryptocurrency from one of the trusted and reliable trading platforms. A crypto exchange offers you the chance convert cryptocurrencies into major government-backed currencies and converts cryptocurrencies into other cryptocurrencies.

Avoid the temptation to go for the best deal, and instead, go with the one that has the best reputation. It’s well worth the peace of mind. There are no chargebacks, no customer support centers to call, and absolutely no way to get reimbursed. So, do your research and go with a trustworthy and regulated exchange.

4. Choosing the Right Crypto Wallet

Since you’re investing within a digital space, cybersecurity is paramount. Cybercriminals are always looking for ways to hack the exchanges, so protect yourself. Once you buy cryptocurrencies on an exchange, immediately move your coins back to your wallets. Holding your assets in exchanges exposes you to risks that you simply don’t need to take.

5. There’s More to Life than Bitcoin

Every good investment strategy involves diversifying. The crypto space is no different. By investing across multiple currencies, you can spread the risk and create a more balanced portfolio.

The cryptocurrency space is always full of surprises, and prices can swing wildly. As a new investor looking to buy and sell, you need strategies to help you navigate those price fluctuations both for the short and the long term.

When it comes to investing, making informed decisions is key.