These days it seems like everyone wants to get into crypto. The potential for getting a large return on investment is very appealing and people are gushing over new and existing digital currencies.
However, getting into crypto without covering a few basic things first is foolish to say the least. Here are 5 things that you should know before diving into your crypto adventure.
Listen to the experts
The first thing that you should do before starting to deal with cryptocurrencies is to make a list of people that you are going to follow. There are some top-notch crypto experts that know what they are doing and you should always pay close attention to what they say.
The crypto industry is a fast-changing environment and if you want to be successful in it, you have to keep up to date with the latest developments. That’s why following and subscribing to people with experience in the field is a must for any future crypto trader. This Infographic lists some of the most influential and famous crypto experts and, as such, should be your first port of call.
Temper your expectations
Don’t think that just because you decided to enter a new market the world will suddenly become your oyster. People have been dealing with cryptocurrencies since 2009 and to say that you are coming late to the party would be an understatement.
That’s why it is quite important that you tone down your expectations before doing your first trade. We are not saying that you shouldn’t be optimistic about your prospects. However, bear in mind that blind optimism alone is not enough in the crypto world.
Be aware of the risks
Popular cryptocurrencies such as Bitcoin and Ethereum (Ether) are very safe. Thanks to blockchain technology and the mechanisms each network uses, it ensures that a malicious attack targeting your transactions is next to impossible to pull off.
However, not all cryptocurrencies come with the security credentials that these two crypto-behemoths have. There have been lots of situations in which people were falling over a new and lucrative cryptocurrency only to lose their hard-earned after the Initial Coin Offering (ICO).
Similarly, as the infamous Twitter hacking scam showed, people will find other ways of taking your digital coins if they cannot breach the blockchain network. Some of us are gullible enough to fall for the oldest tricks in the book and no blockchain mechanism can prevent that.
Check your wallet
There are a couple of things that you should know about crypto wallets. The first one is that the best wallets out there are really easy to use and offer great crypto-functionality.
However, not all wallets are created with the same benevolent purposes in mind. Some of them are devised just so they can scam you.
Whether it is stealing personal data or directly robbing you off your digital coins, these fraudulent wallets can really ruin your day.
Be on the lookout for advances in crypto technology
Getting more bang for your buck should be the goal of all your crypto transactions. One way to do this is to keep up with the latest in crypto-advances.
You can often steal a march on crypto-competitors if you have access to technology that they have never heard of. Bear in mind, though, that the crypto world is a fast-moving beast and that you have to act fast or risk missing out.