The crypto ecosystem is already 10 years old and a lot has changed
since that first email sent by Satoshi Nakamoto announcing that the Bitcoin
protocol was ready. Since then, there have been updates, new solutions and new
problems have appeared (hacks, for example).
Those who have heard about cryptocurrencies recently and want to start investing have a task ahead: learning what they are, what they are for, how they are created (mined or mined), how they are bought, how they are stored and much more. For this reason, this note is intended for those who want to start investing in bitcoin investing in cryptocurrency.
1. First of all, and first advice, research, read, learn
The best investment options are made when you know what to
invest in. And since every investment has a risk, it is better that this risk
be known. Some ideas to get started can be: read about the technology on which
bitcoin is based and discover how the entire crypto ecosystem works, what is a
blockchain , what are blocks, how do they close, what different types of crypto
assets are there , what is the difference between a cryptocurrency and a token,
etc. It seems overwhelming, but little by little you can learn. All information
is available free on the internet and very easy to get. There are no excuses
for not getting inside the subject if you are really interested in investing in
cryptocurrencies. And you have to lose the fear of asking. There are many
enthusiastic people in the crypto space who will be willing to help and answer
the questions that may arise. In this way you can acquire a lot of information
and evaluate the first steps to invest safely and with confidence. And in the
same way, you have to take with tweezers cases of exaggerated success or
resounding failure. They are usually exceptional
2. Start small, step by step and be patient. Much patience.
Getting informed, researching, reading, and learning doesn’t
mean you have to become a crypto guru to start investing. Simply knowing what
it is, what the referents are talking about, understanding their speeches, the
terminology and the functioning of the ecosystem, is a good and great first
step. This leads to a notion of risk. And like any activity that involves one,
it is advisable to go slowly, step by step. As we already said,
cryptocurrencies are a decade old and the ecosystem is in its development
stage. Therefore, the activity is usually risky, and if you invest a lot from
the start, the risk of losing everything is also high. With this we do not want
to instill fear, but we do make it clear that a great investment, just as it
can turn into a big profit, can turn into a big loss with the same probability.
So the second tip is to start by investing little, which you are willing to
lose in case the price goes down, for example. And be patient. Some specialists
recommend that instead of chasing the bitcoin price, let the price reach the
investor. That is, deciding on an entry price and waiting for bitcoin to reach
that price to enter. And when the time comes, buy in small quantities. And
again, patience. Many investors withdraw losing because they entered with a
price and when they see that in a month, the price dropped, they leave. The key
is to wait. All analysts agree that the future is of bitcoin. It is
unavoidable.
3. See beyond the horizon
As the saying goes, it is not advisable to put all your eggs
in the same basket. It is known that bitcoin is the main cryptocurrency, the
strongest and the one with the most future. But that does not mean that the
rest of the crypto assets are worth nothing and will disappear. Unlike.
Specialists say that many of these altcoins are going to find different uses
that are not going to overlap with BTC and are going to have different
applications. The adoption of altocoins is increasing and that is why the third
tip is to diversify. Thus, if one of the components of the investment falls,
that decrease can be offset by a gain from another component. In addition to
Bitcoin, it is a good idea to invest in Ripple (XRP), Ether, Bitcoin Cash (BCH)
and Litecoin (LTC), for example. Investing equally in different components
maintains a balance, as all of these components are within the crypto
ecosystem, and if any one falls by a given percentage, the rest are bound to
increase by the same amount. Caution should also be exercised in which
cryptocurrency to invest. And here we return to the first tip: find out who
created it, how its price evolved, etc. Investigating and keeping up to date
with the crypto market is crucial and you have to be aware of price movements
and statements by world leaders on the ecosystem: it has been shown that a pro
or con discourse can cause the price to drop or rise. Abruptly.
4. Attention to safety
Investing in cryptocurrencies is putting money into digital
assets. For this reason, special attention must be paid to safety. Or rather,
cybersecurity. It is true that there are many hackers and cybercriminals on the
prowl. The best advice to avoid falling victim to their attacks is to use
offline wallets, cold wallets. Immediately after buying cryptocurrencies, the
best next step is to move them to your own wallet. Keeping crypto assets in
custody of an exchange increases the risk of exposing them to attacks. This
does not mean that exchanges are insecure. The main exchanges in the region and
in the world are safe and take measures against attacks all the time. However,
many have suffered hacking attempts by hackers. For that reason, keeping crypto
assets in cold wallets is the best way to protect yourself from hacker attacks.
5. Prepare for sudden changes and movements
Few investments are as volatile as the digital currency
market. The last month is proof of this: since September bitcoin went from
USD13, 000 to UDS 8000 and then touched USD 10,000 and began November
established above USD9100. Every new investor needs strategies to avoid these
ups and downs and to “surf “these price fluctuations. The last tip is a mix of
the previous ones. In addition to diversifying investment, you have to be patient.
Maintaining crypto assets and not falling into the temptation to sell for
short-term solutions is a big challenge. There is a saying that circulates in
the environment that says that passive investment has a greater chance of
success than active investment.