© Provided by The Financial Express WhatsApp Image 2022-11-28 at 13.57.49 By Mohammed Roshan
If you're a newcomer looking to start your crypto investment, here's a few tips that you can use to safely invest in crypto assets. In fact, no matter the market conditions, the things you need to know and look into before investing in crypto are still pretty much the same.
Here's a short list that will help you out in the journey:
It is quite natural if the world of crypto overwhelms you at first. But, that usually does go away with time. The first thing all investors or traders must do is understand the basics.
It is always important to start off with the necessary research before investing your hard-earned money into the market. Investors must understand the basics of blockchain technology, what Bitcoin is, what problem Bitcoin tries to solve, and how the mining process works.
It is recommended that you start off with the oldest and most trusted crypto, Bitcoin. The more you understand Bitcoin, the easier it will be to understand the rest of the crypto ecosystem.
Investors must also spend time to understand the prevailing tax rules and regulations in your state or country before investing.
No matter who says otherwise, there is always a certain degree of risk that comes with investing. What investors can do is follow tips to keep themselves aware and safe to minimize the risk as much as possible.
It is very important to understand that you only invest an amount that you can afford to lose in the market. This may seem like common sense but nevertheless, it can be really easy even for experienced investors to get caught up in the flow and throw away money into the market. While stories of investing all your retirement money into crypto and making a killing are definitely inspiring, this isn't really advisable.
Most importantly, if your investment is causing you to have restless nights, affecting your health or mood, then you are either investing more than you should or you should reconsider whether you really must be investing at all.
It is always recommended to start off with small amounts or passive investing in the beginning.
Infact, one of the ways this can be done is with a platform like GoSats, which helps you passively invest into Bitcoin everytime you shop.
Alternatively, newcomers could start off with investing in blue-chip coins like Bitcoin, which are relatively safer investments. The best way here would be to average out your investments in regular time periods – on a daily, weekly or monthly basis.
Once you understand the basics of crypto and the market you are investing in better, then you can continue to allocate more funds or turn to investing in an active manner.
Do proper research into the coin or coins you plan to invest in. This can be done by reading the whitepaper, understanding the project and the team behind it as much as possible. It is suggested that investors stick to "blue-chip coins" like Bitcoin that have been around for much longer or at the very least allocate a significant portion of your portfolio to such assets.
It is recommended that you go through details on the exchanges or platforms you are investing with high scrutiny. It's your hard-earned money that you are investing after all!
It is natural to get the feeling that you are late into crypto – and that the time to make life-changing money in crypto is long gone.
You may already be thinking this way, and this can lead to chasing high-returns by investing into shady projects or without adequate research. Do understand that the world of Bitcoin and crypto is still in the nascent stage, is booming and has lots of potential to grow. We are all still early.
We hope this helps you navigate the market better and stay safe. The world of Bitcoin & crypto can be life-changing and can take you on the road to financial freedom. However, it is just as important to have fun and enjoy the ride.
The author is co-founder and CEO, GoSats
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