The very first cryptocurrency, Bitcoin, was released in 2009. In the 13 years since then, thousands of other cryptocurrencies have been created. According to a survey of Americans, 87% say that they know at least a little about cryptocurrency while 16% say they have invested in, traded, or used one themselves.
Men between the ages of 18 and 29 years are the group most likely to use a cryptocurrency, with 43% of this group saying that they have invested in or used a cryptocurrency such as Bitcoin.
If you are interested in cryptocurrency but unsure where to start, then this blog post on top crypto tips for beginners is for you. Let’s get started with this crypto guide.
1. Do Your Research
As we have highlighted, there are quite literally thousands of different cryptocurrencies to invest in. Before you dive in, you should do as much research as you are able to better understand the world of cryptocurrencies. This includes the most common cryptocurrencies to invest in, crypto exchanges, and platforms for trade.
2. Start Out Small
When you are ready to dip your toe into the crypto world, it is recommended that you start off with a relevantly small investment. Cryptocurrencies can be incredibly volatile so avoid the temptation to simply dive in head-first.
It’s best to start off with small-stake trades that allow you to improve your understanding of the market without a big risk. Going forward, you should never trade more than you can afford to lose.
3. Choose a Secure Wallet
With cryptocurrency, you have the option of storing them either online or offline. As a beginner trader, it’s beneficial to trade through a reputable broker and use the wallet that they provide.
If you are choosing your own wallet, it will be either a hot waller or a cold wallet. A hot wallet is connected to the internet, though this does increase the risk of hackers. A cold waller, on the other hand, allows owners to store assets offline, which makes it a more secure option.
4. Diversity Your Portfolio
We recommend that you hedge your investments by trading in a number of cryptocurrencies. So, for example, if one cryptocurrency falls in value, any loss may be offset by the profit of another.
This said, it’s important not to over-dilute a portfolio. You should still assign a worthwhile amount to each trade, so take time to find a balance that minimizes exposure in any one option while reasonably increasing profit potential.
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Top Crypto Tips For Beginners
Investing in and trading cryptocurrency is exciting and can be incredibly rewarding. However, it can be confusing for newcomers. The above tips for getting started with cryptocurrency will help you to make the most of your efforts.
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