If you just got started with crypto investing or you are planning to get started soon, and you are wondering what are the top crypto investing tips you should know as a beginner, well, you are in the right place.
In this blog post, I will be sharing with you the top 9 crypto investing tips that every beginner should know. These tips are the things I wish I knew when I started investing in crypto and could have made my crypto investing journey easy for me.
Below are the 9 crypto investing tips every beginner should know:
1. Read The Bitcoin Whitepaper
A lot of people (including myself) get into crypto without giving time to reading the bitcoin whitepaper. Some don’t even know there’s something called the bitcoin whitepaper. It’s a very small piece of writing (with just 9 pages) that anybody can read. It helps you to understand the fundamentals of blockchain and decentralization.
You also get to know why we have other cryptocurrencies coming out after bitcoin and the challenges of bitcoin. This first tip will really give you an advantage while investing in crypto. You can download the bitcoin whitepaper here.
2. Avoid Get-Rich-Quick Schemes
One of the main reasons why a lot of beginners tend to lose so much money in crypto is because they see crypto as a get-rich-quick scheme. They are looking to make quick money. These days we have a lot of scammers advertising crypto Ponzi schemes and a lot of beginners are falling for these things and losing money.
This is because these Ponzi schemes or get-rich schemes always promise a very high amount of profit in a short time. They tell you they can help you invest your money in crypto and they trade for you and you get 100% profit in one month. You need to avoid these schemes.
3. Diversify Your Crypto Investments
We have different crypto exchange platforms out there and different cryptocurrencies in the world. When investing in crypto, it is advisable that you don’t invest all your money in one crypto exchange platform. There are different reasons for this.
Firstly, the government in your country might decide to ban a particular crypto exchange platform in your country or even freeze the accounts of users on the platform, and this can affect your investments.
Another reason is that the crypto exchange platform can get hacked and you lose all your money.
Also, when investing in crypto, make sure you don’t put all your money in one cryptocurrency. This is very bad. You are supposed to invest your money in different cryptocurrencies as this can help you maintain a balanced crypto investment portfolio.
>> RELATED: How To Invest In Crypto For Beginners
4. Buy A Hardware Wallet
This is really not compulsory but it is advisable to get a hardware wallet to store your cryptocurrencies. This is because it is the safest way to keep your cryptocurrencies safe. It is offline and you can’t get hacked. I will personally recommend you buy a Ledger Nano X wallet. Tap here to buy one for yourself.
5. Dollar Cost Average
Most of the questions I’ve heard from a lot of beginners are “which coin should I buy now?”, “When is the best time to buy a coin?”.
As a beginner, you shouldn’t rush yourself with these things, because you might not gain anything by asking people the best time to buy a coin. That is why the dollar cost average strategy is recommended.
You need to first check out the top cryptocurrencies and then use the dollar cost average strategy to invest in them.
For example, you can say you will be investing in Bitcoin and Ethereum every week or every month with a specific amount of money. Over time, this will help you even buy more cryptocurrencies and make more returns by just investing.
6. Utility
Utility means a cryptocurrency is useful and it has many use cases. When investing in cryptocurrencies, make sure whatever you invest in has utilities or use cases. The more useful a cryptocurrency is, the more people will buy it and this will drive the price of the cryptocurrency up.
As a beginner, this will really help you as you are sure that you are investing in good cryptocurrencies.
7. Join A Crypto Community
To be successful in crypto, you need to have access to information. You need to know what’s going on in the crypto market, the next project, and the latest news in crypto.
The easiest way to do this is to join a crypto community on Whatsapp, Telegram, and Discord which are safe and worth your time.
You will get to know what’s going on in the crypto market and even make new connections in the groups.
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8. Stake Your Crypto
Once you have picked the cryptocurrencies you want to invest in and you’ve started using the dollar cost average strategy to invest, don’t just leave your cryptocurrencies idle in your wallet.
You can earn passive income by staking your cryptocurrencies in different projects or even putting your cryptocurrencies in Defi staking. You can do this on different crypto exchange platforms like Binance, Kucoin, and so on.
9. Think Long Term
When investing in crypto make sure you have a long-term mindset. Crypto has made a lot of people millionaires but it didn’t just start some weeks or months ago. Most of these people have been investing in crypto for a very long time.
It is better and advisable to have a mindset of 3 to 10 years of investing in crypto because whether we like it or not, crypto will still be here in 10 years’ time. So think long-term and before you know it, your crypto portfolio will be full of gains.
Conclusion
As a beginner, the future of your crypto portfolio depends on the decisions you make and the steps you take now. These tips are enough to make you a profitable crypto investor.
Most importantly, don’t stop learning about crypto. Crypto is evolving, and the more you know, the more opportunities that will come your way and the more money you will make. Check out different ways you can make money with crypto.
