It's a cool, shiny new toy to have. Everyone wants to call themselves a crypto investor. Everyone wants to partake in the "financial surplus" of the crypto world. But not a day goes by without the news reporting another person who suffered massive losses. And yet somehow, these new reports only scratch the surface. There is so much to know about the crypto industry. So much to be wary of. Expert investor Crypto Sensei calls the crypto industry a "financial iceberg". Deceptively easy to get a hang of, there is so much that you should know before you start investing. Crypto Sensei gives us his top 3 things to consider before you begin.
Understand How Everything Works
Just like how you would read the manual before operating any heavy machinery, it is necessary to go through the "crypto manual". From the numerous crypto trading platforms to the digital wallets, get familiarized with how it all works.
"Diving right into the thick of things before you have got a complete understanding of the ecosystem is not advisable.", says Crypto Sensei, "Instead, spend some time feeling things out. Factor in the importance of details like safeguarding your private digital key."
However, Crypto Sensei adds that it isn't necessary to pay for formal classes or training. With a simple search on the Internet, you will be able to locate hundreds of resources that could help you with the smallest of your questions and concerns.
Be Careful About When You Quit
Ever heard of the phrase "quit while you're ahead"? Crypto Sensei says that it applies to the volatile ecosystem of cryptocurrency more than any other. While many people are cautious about when they enter the market, they aren't nearly as careful when quitting.
"Don't make the common mistake of selling for less than the price that you bought for. Most investors enter when the market is peaking, buy crypto at inflated prices, and sell when the prices return to normal.", notes Crypto Sensei.
Don't Put All Your Eggs in One Basket
Diversification is the name of the game when it comes to investing in cryptocurrency. It is usual for most people to think that their investment portfolio can have just one or two projects. But considering the volatility of the market, Crypto Sensei suggests investing little sums in multiple projects as a way to steer clear of major financial setbacks.
So, before you begin investing, do your research on what are the different projects out there.
Never underestimate the power of research. "It is, and I cannot stress this enough, supremely important to conduct thorough research on your end. Study extensively all the different types of projects out there, all the crypto influencers to follow closely, and the websites you can go to for credible information.", suggests Crypto Sensei.
Crypto Sensei says that the main takeaway for new investors is, "While you should pay close attention to what others are doing, especially seasoned investors and crypto influencers, research and common sense are your best friends. Don't get carried away by trends, be careful, and don't get too greedy."