Cryptocurrency has taken the world by storm, and it’s not just because of Bitcoin. You may have heard about Ethereum or Ripple – both of which are on track to become more valuable than Bitcoin in terms of market capitalization. And there are plenty more exciting new cryptocurrencies that you might want to invest in, assuming that you know these tips!
Best Time To Buy Cryptos
Before anything else, let’s start with the most important question – when is it a good idea to buy cryptocurrencies? Many factors affect cryptocurrency prices and they tend to move very quickly. These fluctuations can even cause serious problems during transaction execution.
If you remember all those stories of people losing millions of dollars worth of crypto because they accidentally deleted their Bitcoin private keys, you’ll realize why it’s so important to carefully consider your investment periods and how and when you allocate your Bitcoin savings account.
Most cryptocurrency experts recommend that new investors only put in money that they can afford to lose. If you’re planning on buying cryptos and hoping they will be more valuable in the future (which most of them probably will), then plan accordingly and don’t buy what you can’t easily recover.
You should also consider looking at small market cap cryptocurrencies with a possibility for big gains. That way, even if one does go bust, many others may follow suit which could see your overall balance rise exponentially (although this is not investment advice!).
What Is The Best Cryptocurrency?
As we’ve mentioned before there are several cryptocurrencies on the market, and for a new investor, it can be tough to know where to even start looking. It is worthwhile to analyze the different cryptocurrencies to make your choice, and then buy Litecoin, Bitcoin, Ethereum or other cryptocurrencies.
You must pick a cryptocurrency that is going to hold its value rather than something likely to fall in a day or two – otherwise, your investment will have been a complete waste. There are so many cryptos out there these days it can become overwhelming. So what should you do?
Simply put, you need to take time researching each coin before buying them. This might not sound like an exciting prospect but there’s no better way if you want to avoid losing money because you bought into the wrong crypto. The best piece of advice we can give here is to read Reddit threads about each prospective crypto purchase, to see what other users are saying.
The Best Cryptocurrency Wallets
It’s not just a case of putting your money into any old cryptocurrency wallet, because if you do that then chances are you’ll lose it all. You need to carefully research each wallet before buying cryptos and ensure that it does support the tokens you want to buy. To make things easier for crypto investors, we’ve listed some of the best options below.
Hardware Wallets
Hardware wallets are incredibly popular, as they allow completely safe storage of your private keys offline where hackers can’t reach them. They usually come in USB form so you can easily plug them into your computer when you’re ready to trade or withdraw money. The big downside with hardware wallets is their cost – these things aren’t cheap!
Online Wallets
Online wallets are a popular choice because they’re convenient and easy to access (just always ensure you use the correct connection and make sure you don’t accidentally expose your private keys). The main issue people face with online wallets is that there’s usually a small fee for each transaction, which can soon add up.
Desktop Wallets
Desktop wallets are one of the safest ways to store your cryptocurrency as long as you follow all security protocols such as not making backups of the wallet file on an unsecured device. To be truly safe, consider using a computer that doesn’t have access to the internet at all.
Paper Wallets
Paper wallets are one of the simplest ways of storing cryptos as long as you follow a set of specific security protocols – something that new investors might not be able to do. If you’re thinking about using this option, make sure you only buy paper wallets from trusted sources, and always remember to generate your private keys first.
Cryptocurrency Price Prediction
Many people who invest in cryptocurrencies tend to keep a close eye on price prediction forecasts. As a result, there’s been an explosion in websites offering these services, both free and paid for. While it’s certainly true that some analysts have predicted with astonishing accuracy the movements of certain cryptocurrencies, their predictions can hold little weight if they didn’t predict similar events for other cryptos.
The best advice we can give here is to always carry out your research before investing in a particular cryptocurrency, and don’t just listen to others – after all, they’re trying to sell you something!
What You Must Avoid
When people buy cryptocurrencies, they tend to look for the ones that are poised to make them the most money. While this can be a successful strategy, it’s always worth remembering that there are certain red flags you should avoid at all costs – especially if you’re new to crypto!
For example, buying into an ICO with nothing but dreams and aspirations is probably not a good idea (even though these things do exist). Instead of investing in ICOs like this, why not invest in one of the established tokens?
Crypto Hacks And Scams
There have been several hacks and scams within the cryptocurrency industry that have left people broke. Although no system is indeed 100% safe, there are ways that you can dramatically improve your security measures – as long as you take the time to read up on how these things happen so you can avoid them yourself.
While nobody wants their investment hacked, even worse is losing money because you didn’t bother taking simple precautions. That being said, if you do fall victim to a hack you might be able to limit your losses.
We’ve covered some of the most useful hacks and scams that every new cryptocurrency investor needs to know about, but this is by no means an exhaustive list. If you do a bit of research into other hacks and strategies that experienced crypto traders use then you’ll soon find yourself even more knowledgeable than many people who have been in the industry since it started!
