Smart Tech Tips: Five Things you Should Know Before Investing in Cryptocurrency By Fom Gyem
Investing in Cryptocurrency can be rewarding but it comes with risks. You have to always approach it with caution, education, a long-term perspective and deep knowledge of how the platform works. These are some things you need to know before investing:
1. Do Your Research: Never invest in a cryptocurrency based solely on hype or someone else’s recommendation, you should understand the project’s purpose, technology, team and research extensively where your interest lies.
2. Start Small and Diversify: Cryptocurrency is highly volatile, so, always begin with an amount you can afford to lose. Diversify your portfolio across different cryptocurrencies to reduce risk and avoid investing all your funds in one coin or project.
3. Use Secure Wallets and Exchanges: Store your crypto in secure wallets (hardware wallets for long-term storage). Avoid keeping large amounts on exchanges, as they are vulnerable to hacks. Make sure you enable two-factor authentication (2FA) for added security.
4. Avoid Emotional Trading: Fear of Missing Out (FOMO) and panic selling can lead to poor decisions. Stick to your investment plan and avoid making impulsive trades based on emotions.
5. Keep Learning and Adapting. The cryptocurrency space is evolving rapidly. Stay curious and continuously educate yourself about new technologies, trends, and risks. Follow reputable sources like CoinDesk, Cointelegraph etc for official project announcements.
By knowing these tips and following them religiously, you can minimise risks and make more informed decisions in the dynamic world of cryptocurrency.
