Introduction
Cryptocurrency is now reaching a much larger audience than it has ever been. Newcomers may be enticed by skyrocketing prices, but they should be aware of the risks before getting in.
If you've recently been interested in cryptocurrency and are considering investing, here are Three (3) things you should know before investing in any cryptocurrency.
1. Don't risk more than you can afford to lose by investing.
Cryptocurrency is a riskier investment than many others. Except for volatility, nothing is certain. Furthermore, in the majority of cases, it is uncontrolled. There is no FDIC insurance or a buyer of last resort for this item. Cryptocurrency prices fluctuate drastically from minute to minute.
As a result, don't stake your entire farm, or your entire life savings, on any coin.
2. Make a research thoroughly before investing in any coin
Spend hours upon hours researching the technology and the project so you grasp the value proposition and the hazards before investing a large amount of money in any digital currency.
Read as much as you can about the coin. Borrow books from the library regarding digital currency, as well as related topics including cryptography, game theory, and economics.
Don't by a coin because a lot of people are buying, go to the coin official website, check out their whitepaper, roadmap and the team behind it.
3. Resist 'fear of missing out" (FOMO)
If the sole reason you're investing is to prevent missing out on something, the only thing you won't miss out on is losing everything.
Fear of missing out (FOMO) is a surefire way to squander any income you've amassed over the years. The issue is that it is a gut reaction to something that should first be examined. Trading based on your gut is a certain way to end up with an upset tummy.
You should be aware of what you're investing on. It's not research to look at a trading app and discover that a currency has increased by 30% or more in the last 24 hours. It's possible that you've been sold a falling cryptocurrency.
Pumpers exist in any coin, including bitcoin. Don't be swayed by peer pressure. This isn't your typical high school experience. Consider your options and weigh in on the pros of an investment.
Research, research, research.
Conclusion
This post is not intended to scare anyone away from a fascinating and potentially transformative field, but rather to ensure that people enter with their eyes wide open.
When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research and analysis before making any investment decisions
It strongly advisable to do your own research thoroughly
If you love what you read, you can encourage me with your comment and upvotes, that will push me to publish more article.
Thank you all for reading!!!