Bitcoin (BTC) and cryptocurrencies are attracting more and more investors. As a beginner, mistakes can quickly pile up and discourage many. Here are 7 tips to follow when starting out in the world of crypto-currencies.
Always ask before you buy
To get into a field as complex and intense as cryptocurrency, it is obviously recommended to get the best education on the subject. There is a lot of documentation available on bitcoin and how it works.
To educate yourself and gain some perspective, you can find a wide selection of formats such as:
- News and information sites
- Social networks of exchange platforms and main actors of BTC ;
- Interviews, podcasts, documentaries, etc.
Being quite vast, you will be able to find your happiness on the different topics concerning bitcoin by searching the web. The best way to master your subject is to learn about the origins and technical workings of bitcoin.
👉 For a better understanding of BTC, check out our complete guide to bitcoin
Investing via a trusted platform
Choosing the right platform is not necessarily obvious, but it is essential to make this choice. Each exchange platform will offer different features to best suit different investor profiles. It will also depend on your needs and what you are looking for with the purchase of bitcoins.
Choose a secure exchange platform that meets your deposit and withdrawal needs. Not every platform will charge you the same fees to transfer your euros into your wallet, nor to retrieve your winnings.
If you’re not sure which platform to go with, the safest platforms at the moment are Binance, Coinbase and Kraken.
👉 Need help choosing your exchange platform? – 10 best sites to buy Bitcoin in 2023
Keep track of your investments
When investing via exchange platforms, it is tempting to be satisfied with the platform’s internal statistics to follow the evolution of one’s portfolio. However, we quickly realize that it is difficult to follow the evolution of our investments correctly.
To leave nothing to chance, we recommend that you keep an up-to-date record of your investments (via Excel or on a piece of paper). You can write down when you acquired your crypto-currencies, how much you invested, what you earned, withdrew, etc.
Another method, applications such as Delta or Blockfolio will allow you to track your investments more easily.
This little tip will help you keep your feet on the ground and avoid any excess.
Opting for a Programmed Investment Strategy (PIS) first
To start, it is often recommended to follow a programmed investment strategy.
This strategy, more commonly known as DCA, consists of investing on a regular basis and over the long term. The programmed investment strategy allows you to base your investments on your income and thus, to impose a fixed amount to invest at the frequency of your choice.
However, we only recommend this strategy if you want to invest for the long term. The price of bitcoin is still very unstable and you may be in for a nasty surprise if your goal is to make money in the short term.
Taking a broader view, the programmed investment strategy is still a tactic that works almost every time. It all depends on how confident you are in your trading abilities.
To maximize your chances, you can also adopt this strategy in addition to one-time investments at prices that you feel are more consistent with the current bitcoin price.
👉 Learn more – How to buy bitcoins?
You’ve heard a lot of positive things about bitcoin and see it as a profitable investment? Well, keep in mind that conquering BTC is no small task, especially when you’re in uncharted waters.
Investing in cryptocurrencies doesn’t necessarily make you rich overnight. Don’t think 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 is still very volatile, so you will need to make reasonably small investments to get started.
Regular learning and constant monitoring of new information are essential components to keep up with the changing state of the market.
Step back from external recommendations
Whether it’s on YouTube, in podcasts or on social networks, some people will enjoy drowning you in investment recommendations and best 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 statements are not influenced by bad intentions.
Keep in mind that any advice on how to trade your bitcoins is for guidance only. There are no miracle recipes on the right or wrong time to invest or withdraw your BTC.
Think about enjoying your earnings
It is very tempting to want to hold on to your gains in anticipation of a further increase in your assets. However, don’t forget to indulge yourself and enjoy the gains from your investments from time to time.
Remember that you invested to receive gains in return. It’s easy to get lost in tracking your investments, many have fallen into the fascination of this universe. But don’t let the precious, coveted sesame that made you dive into the world of cryptocurrency pass you by.
Following a pre-determined strategy is also preferable. For example, you may decide to sell your BTC in increments, 10% of your portfolio every time the cryptocurrency price rises by 5%.
By following these tips, your first steps into the world of cryptocurrency will be less hesitant. To learn more and get informed about this world, you can also check out our many courses and guides on Bitcoin and cryptocurrencies.