Bitcoin (BTC) and cryptocurrencies are attracting more and more investors. As a beginner, errors can quickly accumulate and discourage more than one. Today BSV Blockchain provide 7 tips to follow when starting out in the world of cryptocurrencies.
Always inquire before buying
To get started in a field as complex and intense as cryptocurrency, it is obviously recommended to train as well as possible on the subject . There are many documentations about bitcoin and how it works.
To educate yourself and take a step back, you can find a wide choice of formats such as:
- News and news sites like Cryptoast;
- The social networks of exchange platforms and main BTC players;
- Interviews, podcasts, documentaries, etc.
Being quite vast, you will be able to find what you are looking for on the various topics concerning bitcoin by searching the web. The ideal way to master your subject is to learn about the origins and technical workings of bitcoin.
Invest through a trusted platform
Choosing the right platform is not necessarily easy and yet, it will be essential for you to make this choice. Each trading platform will offer different features to better adapt to different investor profiles. Everything will also depend on your needs and what you are particularly looking for with the purchase of bitcoins.
Choose a secure exchange platform that will meet your deposit and withdrawal needs. Each platform will not charge you the same fees to transfer your euros to your wallet, just like to collect your winnings.
If you don’t know which platform to start on, the safest platforms at the moment are Binance, Coinbase and Kraken.
Keep track of your investments
By investing via exchange platforms, it is tempting to be satisfied with the internal statistics of the platform to follow the evolution of your portfolio. Only, we realize quite quickly that it is difficult to correctly follow the evolution of our investments.
To leave nothing to chance, we recommend that you keep an up-to-date account of your investments (via Excel or on a sheet of paper). You can enter the date of acquisition of your crypto-currencies, the amount you have invested, what you have earned, withdrawn, etc.
Alternatively, applications such as Delta or Blockfolio will make it easier for you to track your investments.
This little trick will allow you to always keep your feet on the ground and avoid any excess.
Opt first for a programmed investment strategy (DCA)
To start, it is often recommended to follow a programmed investment strategy .
This strategy, more commonly known as DCA, consists of investing regularly and over the long term . The programmed investment strategy allows you to base yourself on your income and thus impose a fixed amount on yourself to invest at the frequency of your choice.
However, we recommend this strategy only if you want to invest for the long term. The evolution of the bitcoin price remains very unstable and you could have unpleasant surprises if your goal is to make money in the short term.
By having a broader vision, the programmed investment strategy remains a tactic that works almost every time. It all depends on how confident you are about your trading abilities .
To maximize your chances, you can also adopt this strategy in addition to one-off investments at prices that seem more consistent with the current bitcoin price.
Heard about bitcoin positively and see it as a profitable investment? Keep a certain distance all the same, the conquest of BTC is not an easy task , especially when you arrive in unknown territory.
Investing in cryptocurrencies does not necessarily make you rich overnight. Do not dream too big when taking your first steps in this great adventure, because the road may be long.
Be careful and don’t allow yourself to invest more than you can afford to lose. The cryptocurrency market remains very volatile, which is why you will need to make reasonably small investments to get started.
Regular learning and constant monitoring of new information are essential components to follow the evolution of the state of the market.
Take a step back from external recommendations
Whether on YouTube, podcast or social networks, some will enjoy drowning you in recommendations and good investment practices. But should we always trust what other people advise us to do? External recommendations should be taken with a grain of salt .
If someone advises you to invest in a certain way or on a particular platform, make sure that their assertions are not influenced by bad intentions.
Remember that any advice on how to trade bitcoins is for guidance only. There are no miracle recipes on the right or wrong time to invest or withdraw your BTC.
Thinking about enjoying your winnings
It is very tempting to want to hold on to your gains while you wait for a further increase in your assets. However, we must not forget to have fun and take advantage from time to time of the gains reaped thanks to the investments made.
Remember that you have invested to receive gains in return. It is easy to get lost in monitoring your investments, many people have fallen in love with this universe. But don’t let the coveted precious sesame that pushed you to dive into the world of cryptocurrency pass under your nose.