If you are looking to get started with cryptocurrency and either invest or buy and sell coins, you will want to understand the basics and what to look out for. Depending on what your needs are, you may be wanting to invest in a cryptocurrency and see how the price performs in the long term, or you may want to get straight into buying and using digital currency to purchase goods and services. Either way, here’s a short guide to some of the dos and don’ts with cryptocurrency to keep in mind.
Don’t put all your investment in one place
In the same way an investor will approach the stock market, you’ll want to diversify your portfolio and choose a range of different cryptocurrencies to buy. As the market can be volatile, you’ll want to have plenty of options to see growth. It’s a good idea to look beyond the well-known cryptocurrencies such as Bitcoin or Ethereum and diversify with altcoins. There are many thousands to choose from, each with its own different outlook, such as Floki that is combining the power of memes to be the people’s cryptocurrency, offering its own NFT metaverse and marketplace. This is part of the memecoin revolution that saw Dogecoin experience huge growth in a short space of time. Diversifying also ensures that if prices fall with some, you could still see success with others.
Do research and lean on insights
If you are not experienced with using cryptocurrency, you’ll want to be cautious before spending your real-world money. Keeping up to date with the latest cryptocurrency trends, news and insights can quickly provide an understanding of what’s happening presently, historically and what’s upcoming. It can be confusing, so it’s recommended to speak to experts or those who have been using cryptocurrency for a while. Consulting with those experienced with trading and spending digital currencies can be very helpful if you are a novice. You’ll also make sure that you make an informed choice with a cryptocurrency, as not all can be spent in the same way. If there is something in particular you want to purchase using cryptocurrency, you’ll want to make sure they accept your chosen coin. As it becomes more mainstream, businesses and retailers will be open to many more cryptocurrencies outside of Bitcoin, Ethereum and the most well-known choices.
Don’t fall for scams
As with any emerging or popular market, there can be those looking to take advantage and bad actors who will make false promises. Being able to spot the scams before parting with your money is crucial, with imposter sites that look like the real thing or new currencies that draw you in with guarantees of a high return. Being vigilant with anything to do with your personal finances is important, so ensure that you have researched fully before buying a chosen cryptocurrency and that you check the URL of the exchange you are using before proceeding. There are also phishing scams relating to must-buy digital currencies that can reach you via email or text.
Do own private keys
Once have a cryptocurrency balance, you’ll want to store them privately rather than on a public exchange. By having your own private keys, only you can access your coins and stay as secure as possible. A hardware wallet is a good way to achieve this as it is offline and away from any potential hackers or data breaches. Just like a USB memory stick, you can store your balance away from your computer or tablet and access it when you want. If taking this step, you’ll need to make sure you don’t forget your password and use encryption or 2FA to ensure it’s secure to you only.