Cryptocurrencies such as Bitcoin made their mainstream breakthrough just a few years ago, and since then they’ve rapidly grown in popularity, especially with those who are looking to invest. Now there are some who may argue that investing in cryptocurrency is the same as having a flutter on a roulette wheel online sites like Royal Vegas. However, this is definitely not the case. Cryptocurrency is a serious business and can be extremely rewarding.
In fact, what makes this type of investment so rewarding is how volatile the market can be and hence the reason it is worth doing your homework before committing financially. Therefore, we’ve put together 5 top tips for those looking to get into the crypto investment game.
Do your research
When you’re considering investing in anything, it’s always vital to do your research beforehand. While many will just want to get straight on with investing and trying to make profit, without proper research, things could go terribly wrong. After putting the hours in researching everything there is to know, it’s also imperative to keep abreast of developments as time goes on, because there will always be something new to know in what a rapidly changing industry is.
FOMO & FUD
FOMO, which stands for fear of missing out, and FUD, which is fear, uncertainty and disinformation, are two acronyms that anyone in the crypto scene will have come across or will come across on their journey. They’ve both played a role in the investment scene for many people, and it often leads to disaster. Anyone considering investing in cryptos should aim to not let either influence them, approaching situations with their own thoughts.
Avoid P&D groups
P&D groups, otherwise known as pump and dump groups, have become very popular with cryptocurrency investors, especially the new ones on the scene. These groups often promise their members that they will be able to double their returns in a day, even sometimes claiming members will be able up to 5x on their returns. While some will get lucky and make a bit through P&D groups, the reality is that they’re very much a scam. If something sounds too good to be true, it often is, so avoid groups like this at all costs.
The cryptocurrency scene, as shown above, is full of pitfalls, with many scams flying around. There are also hackers to be aware of, phishing attacks, fraudsters and imposters. Therefore, protecting yourself at all costs and always is vital. Taking precautions such as using Linux or Mac based operating systems, scanning for and disabling unnecessary extensions, and double-checking URLs is vital. It’s always better to be safe than sorry and taking the time to stay secure is always worth it.
Don’t invest what you can’t afford to lose
This may seem like common sense, and it’s a message that we will see everywhere, but there’s always some who ignore it. Investing more than you can afford to lose can lead to, and has led to, people losing all their savings for example. It might seem boring to play it cautious, but it’s certainly the best form of attack, that way, there will never be unexpected losses occur, which can have a huge knock on effect.