The world of cryptocurrencies is without a doubt an eye-catching and new one. Thus, there are many people who want to enter and invest in some of the best known crypts, or in some newer ones. However, the very fact of being new plays against the crypt, since many still does not know how to enter it. Still, there are certain adventurers who take the initiative to enter this fascinating world. So, for you, the adventurer, in Onix we have decided to explain 10 tips that you must follow to invest in cryptocurrencies investing in cryptocurrency. In this way, you can grow and at the same time be innovative in your financial methods. We hope it helps.
10 Tips to follow to invest in cryptocurrencies
- Read a lot
The first thing we must do when entering something we do not know, or know little about, is to read. With the reading you will not only understand better what the best cryptocurrency to invest is, but also you will understand better how this world is handled. Thus, you will have a general knowledge that will help you in the future when you want to increase your investment, change your crypts, sell them, or who knows, and become a trader. From what are cryptocurrencies to what is the best exchange, all this documentation will help you to reduce the risks that you think may exist when you invest in cryptos.
- Investigate various types of cryptocurrencies
We know that there are cryptocurrencies known by almost everyone today. Bitcoin, Ethereum, Dash, are names recognized by many, but these are not the only cryptocurrencies there are. Before entering this world, you must know even the basics of some coins, and not necessarily the largest. Coins like Litecoin, or like Onixcoin, have gained a name and are looking to create a space in this world.
- Watch for scams
What has been said above does not mean that you should trust all the new currencies or that you should stay away from those considered “old reliable”. Currently, it has been observed as scam cases with the creation of false “cryptocurrencies” have been on the rise. Being that we are talking about money, that you take care of your investment in fraud cases is both necessary and intelligent. Reading the news accounts or the comments made in the exchanges, in addition to a point that we will explain below, will help you to protect yourself from those false crypts that can harm you.
- Know the project behind the cryptocurrency
Not all cryptocurrencies were created with the same thought, or with the same function or objective. In this way, reading the project behind each cryptocurrency that you have considered a candidate to invest is a necessary point. Bitcoin was created from the beginning as a decentralized payment system, Ethereum was created thinking of smart contracts or intelligent contracts, Onix was thought to be a system of loans. It is important to take into account if the project behind the cryptocurrency is something new and disruptive, or if it is a competition of something existing.
In the second case, it is best to read the project in depth, and investigate the advantages of one over the other for the lives of those who invest in it. In this way, you can choose something new or something more advantageous for you.
- Choose the one that fits your wishes
Now that you have read and understood more about cryptocurrencies and cryptocurrencies extensively, it is time to make a decision. Here, the best thing we can do is to choose a crypto that is more suited to your needs, your desires and even your own person. That coin that catches your attention, with which you feel identified, that fills your needs, gives you more benefits and that you have already verified how genuine it is in which you must put your trust and invest.
At this point we will give you a recommendation. It does not matter if a cryptocurrency is more striking than another, or if it has a better graphic design or visual identity than others. In this case, the most important and necessary thing should be to fill your needs, be beneficial and trustworthy. Little will matter how beautiful is the visual identity of a crypto if it ends up being a decrease in your capital.
- Diversify and conquer
Not always choose a crypto and invest everything there is the best option. The most advisable in the case of having started in the cryptocurve is that you invest few amounts in several cryptocurrencies. In this way, if any of those you chose falls on the market, you have had a minimal loss, and another of your options may have had an increase. This decision will not only help to safeguard your investment, but also to know the actual behavior of cryptocurrencies.
- Investigate your emission policies
One of the points that can alter the price of a crypto (not the only one) is the variability of its emission. What is an emission policy? Well, the amount of cryptocurrencies that are estimated to be issued in total. In this way, just as Bitcoin has a limit of 20 million bitcoins issued, many others have a limit, or are of indefinite emission. Knowing the possibility of issuing a currency can let you know the offer that this may have. Since the crypts are handled in a certain way by supply and demand, their possibility of offering may alter their price.
- Do not invest all your money
Even though it may be tempting when you see that you are winning, investing all your money abruptly can be a beginner’s mistake. We must understand that the world of cryptocurrencies, as was the stock exchange in its time, is a changing world , where what is rising one day may lose its price to the other. Thus, the best thing to do is invest up to the amount where you would be comfortable losing. In this way, we take care of the volatility of the crypts.
- Manage your own movements
As in any case of finance, the best we can do is to manage your own movements. This is because in such an eye-catching world, handing in your recovery phrase, passwords or authentication to another person can be risky. The best we can do in these cases is to maintain and manage our own movements, and ask for advice in necessary cases.
- Protect your investment
As we said before, the protection of your investment is important. And in case of passwords, seeds or phrases of recovery of your wallet protect it and keep it saved is without a doubt the maximum way to protect your investment. Imagine that this is lost; you could not recover your wallet even if you wanted, and you would lose your investment. The biggest recommendation is to keep it on paper, and not digitize it in any way. In this way, the chances of it reaching a third party are less.