We’re nearing the end of 2021, if by now you’re still not familiarized or aware of the whole hype surrounding cryptocurrencies such as Bitcoin, well, right now would be a good time to start.
Cryptocurrencies have established themselves as the premier player in the modern global economic scene, with industries from all walks of life, even including online sports betting sites like the ones that keep up with March Madness predictions now accepting them as legal tender. This has made the spike in interest for wanting to invest in cryptos skyrocket as well, with more and more blockchain tech companies making the whole process of crypto investment and trading as simple and accessible as possible to anybody who’s interested.
But of course, one can’t simply just hop on the crypto investment trade from the get-go and expect everything to magically work out to the best results. There are serious factors and tips to consider before buying and investing in cryptos for the first time. So here we bring you our list for two very important factors to consider before buying cryptos for the first time.
Understand The Volatility Factor
Unless you started investing in cryptocurrencies such as Bitcoin for example when it first came out over a decade ago, then of course, the volatility factor behind said currency wouldn’t really affect you, given that you had probably bought each BTC at cents on the dollar or at a very low price. But nowadays, with bitcoin and other mainstream cryptos holding a value that’s in the thousands of dollars, volatility plays a crucial factor in to how the industry and its profit-making margins work.
Given that cryptos by trait have a decentralized nature to them, meaning that they don’t have any governing or financial entity to work as a fiscalization counterpart, the value of cryptos can sometimes take tremendous spikes in value as well as jaw dropping drops. Now, that doesn’t necessarily mean that you could go from having the world at your feet at one moment, to being at the feet of the world at another. But it does mean that for rookie crypto investors, starting out low and slow is usually the best way to go in order to make sound investments and have enough wiggle room to still be able to maintain a certain hand and advantage in the market. Crypto investment experts usually advice new investors to start investing and trading with cryptos as a part of a diversified portfolio of business endeavors, with a percentage of 1 to 5% of their investment portfolio as a good number to start with and move from.
Learn To Crawl Before You Can Walk
One of the most attractive features that make new crypto investors jump right at the chance of being able to start investing in cryptos is the success stories that they usually run into before taking the plunge. Yes, if done properly, investing and trading with cryptos such as Bitcoin or Ethereum could set you up for a plethora of economic and wealth-driven triumphs but at the same time, in order to get to be part of the success testimonials, you first have to learn the ropes, do your homework and test the waters out slowly before you go in head first.
Investing in cryptos can somehow relate to what playing in a casino is like. You might walk into a casino, feeling lucky, with all the signs, stars and everything going in your favor, hit the tables and come out as a rich man. But also, you could walk in, just the same as before, and end up leaving thinking of how you’ll have to scramble for pennies and dimes in order to make it through for the next days. The same goes for crypto investing. Cryptos are not what they used to be when they first came out, especially if you consider Bitcoin. Yes, Bitcoin is the strongest crypto out there, with the highest value and return, but since then there hasn’t been any other altcoin that has been even close to matching the success that BTC had, and with how the crypto market continues to evolve, it seems very hard and almost impossible for there to be another success story and starting run quite as thrilling as the one BTC had. This is why having a wealth of knowledge, awareness and above all education on the subject of cryptos will usually be the best way to begin in the world of e-money investment.