When I first starting buying and selling cryptocurrencies, I started with a couple of hundred pounds/dollars. Today, I’m up 100s of percent and counting. That being said, I have learned some hard lessons along the way. So what things do you need to know before leaping into buying your fist cryptocurrencies? Read on to find out.
Knowledge is power
Before buying any crypto coins, you need to research, research, and research some more. Listen to what others are saying, and don’t buy blindly. Perhaps visit a crypto news aggregator site and get a good spread of information on what is happening in the market place.
Look at the coins fundamentals, check the price graph, read and analyse the road map. Does the coin have an active developer base? What do current proponents and opponents think about it? Bitcointalk.org is a great place to visit – check out their forums and get involved.
In the crypto game, knowledge really is king and don’t invest what you can’t afford to lose.
When you first start investing, I would recommend starting with a small sum of money that you can afford to lose. Buy coins; learn from your wins, and losses. Take your time. Once you have a basic knowledge then invest some more. But always invest what you can afford to lose. Crypto coins are highly speculative and can crash and burn over night. Be prepared to lose everything!
On the other hand, consider the idea that you can lose 100 percent of your money, but make 1000s of percent profit.
And it’s this reason that spurs us on… the gains… the moon shots…. the thrill of the ride.
Don’t coin hop
There are many cool coins out there and there’s always a temptation to buy the next big thing. I would be tempted to research well and build a portfolio of the well established coins like Bitcoin and Ethereum and some up and coming altcoins. Don’t panic if they drop 10%, 20%, 30%… trust your initial research and build positions of strength.
A key mantra of mine is keep calm and hodl.
Prepare to be sucked in
The great thing, or perhaps not so great thing, is that being in the crypto game is that it will suck you in. Prepare to be enthralled, excited, and devoted to all things crypto. The thrill of the chase to the moon is both mesmerising and nail biting.
I wish you the best of luck in starting your journey. If you’re not quite sure how to get started, check out how to buy cryptocurrencies for some pointers.
I’ll see you on the moon!