6 Things you Need to Know When Investing in Crypto

6 Things you Need to Know When Investing in Crypto: Organisation, Goals, Community, Information, Best Exchanges, Dollar-Cost-Averaging.

Beginner-Friendly

In case you are just starting in the crypto universe, you will notice the massive amount of information available.

That is why we have prepared a list with the most important points to start. You can use this list as a guide to get you started.

1 - Your Financial Organization

Before you start investing, think about your current financial organization. Crypto Assets prices are oscillating all the time and a lot!

Therefore, investing all your money into crypto can be very risky and is not a good idea.

Keep in mind that the money to invest in crypto assets should be money that won't affect your day-to-day life and your ability to pay your bills.

Imagine you waiting for BTC to rise to put food on the table, and suddenly we jump into a bear market? Be careful!

This investment will suffer daily decreases and increases. For example, if you see a -10% decrease in your invested capital, don't panic and sell everything, ending up in a loss.

Financial organization and emotional control are the key characteristics of a good long-term investor.

🔗Check out our article: 5 Steps to Build a Budget if you need further assistance on this step.

2 - Why are you investing in the crypto space?

At CryptoExplorer Pro we know very well all the benefits of crypto investments, and our mission is to share this knowledge with as many people as possible.

But the big question here is directed to you: What are your goals in this type of investment? (Safety? Capital appreciation? Passive income? Extra income? Protection against inflation? Speculation?)

Have this answer clear in your mind.

For any investment (whether buying a car, a house, putting money in savings, buying stocks or buying crypto) you must know your goals, and how to list all the benefits of such investment.

3- Invest gradually

If you don't have much experience with cryptocurrencies yet, you shouldn't invest all your investment capital at once.

Gradually familiarize yourself with this new market. You can buy fractions of Bitcoin or other cryptocurrencies in smaller amounts.

Progressively, you will increase your knowledge at the same proportion as your invested capital. Gaining confidence in the crypto industry and knowing all the various projects available.

🔗PS: Have you heard of dollar-cost averaging?

4- Join a digital community of crypto enthusiasts and increase your circle of friends in this industry.

The best way to increase your knowledge in this universe is by talking and sharing information with people in this environment.

You are not alone, join a Crypto community, check some groups on Discord, have a look on Twitter and Medium. Many resources and people out there.

We created 🔗CryptoExplorer Pro with this specific purpose.

To help individual investors understand Crypto, and of course, make a profit out of it.

We are offering exclusive material for members,
Ensuring that you are always up to date with the latest cryptocurrency news,
Daily updates,
Trading ideas,
🔗Exclusive Discord Community,
Video courses,
Much more!

PS: Of course, always be on the lookout for scammers & don't click on links that strangers share via DMs :)

5 - Choose the best Exchange, based on your needs:

Overall, you should be looking for a safe exchange, with good customer support and ease to use.

These are some of the features to consider when looking for a reliable exchange to open your crypto-digital portfolio:

Review each Exchange's website;
Review their history;
Customer testimonials (Check out TrustPilot);
Try contacting them via phone or web chat;
Try downloading the app and see if the design is to your liking;

Many Exchanges offer a sign-up bonus, so go for it and enjoy some free tokens. (to mention a few: there are 🔗Binance Exchange, Crypto.com Exchange, Kucoin, Bybit)

Before transferring your money to the broker, make a general analysis and see if it offers all the services you seek.

6 - Information, Information and Information!

Unfortunately, there is no easy way. But it's not that hard either.

To invest your money well, you need to take the time to understand what and where you are investing.

Let's take a concrete real-world scenario: Imagine buying a house. You are not just going to buy it because the price is low and your realtor tells you "it's a good one".

Ideally, you will analyze a few points, like:

The neighbourhood,
The location of the property,
The development potential,
The structure of the house itself,
If it needs renovations,
Among other points.

Taking the same idea to an investment in cryptocurrencies, it is necessary to:

Read the project's whitepaper, which is nothing more than the document created by the founders explaining their idea and potential;
Engagement with the crypto community;
Stability in the market;
User adoption;
What is its use case?
Does it have a roadmap of growth?
Social Presence?
The Team;
The volume of transactions and price fluctuations;
Responsiveness of the developers in case of problems;
Longevity, how long the project has been on the market?

It looks like a lot of points to check, but trust me, it is worth it.

Knowing them will make the difference in your journey as a Cryptocurrency Investor. Especially with so many blockchain projects appearing every day.

Do you want to know which projects do we trust and invest in?

🔗Join CryptoExplorer Pro today 🚀

Categories: Guide