Bitcoin (BTC) and cryptocurrencies are attracting more and more investors. As a beginner, mistakes can quickly accumulate and discourage more than one. Here are 7 tips to follow when starting out in the cryptocurrency world.
Always inquire before buying
To get started in a field as complex and intense as cryptocurrency, it is obviously recommended to get the best possible training on the subject . There is a lot of documentation on Bitcoin Lifestyle and how it works.
To educate yourself and take a step back, you can find a wide choice of formats such as:
News and information sites like Cryptoast;
Social networks of trading platforms and main BTC players;
The interviews, podcasts, documentaires, etc.
Being quite large, you will find your happiness on the various subjects concerning bitcoin by digging on the web. The best way to master your subject is to learn about the origins and technical operations of bitcoin.
Invest through a trusted platform
Choosing the right platform is not necessarily easy and yet, it will be essential for you to make this choice. Each exchange platform will offer different characteristics to best adapt to different investor profiles. It will also depend on your needs and what you are looking for particularly with the purchase of bitcoins.
Choose a secure exchange platform that will meet your deposit and withdrawal needs. Each platform will not charge you the same fees to transfer your euros to your wallet, just like to collect your winnings.
If you don’t know which platform to get started on, the most secure platforms out there are Binance, Coinbase, and Kraken.
Keep track of your investments
When investing via exchange platforms, it is tempting to be satisfied with the internal statistics of the platform to follow the evolution of your portfolio. Only, we realize quite quickly that it is difficult to correctly follow the evolution of our investments.
To leave nothing to chance, we recommend that you keep an up-to-date record of your investments (via Excel or on a sheet of paper). You can enter the date of acquisition of your crypto-currencies, the amount you have invested, what you have earned, withdrawn, etc.
Another method, applications such as Delta or Blockfolio will allow you to more easily follow your investments.
This little tip will allow you to always keep your feet on the ground and avoid any excess.
Opt first for a programmed investment strategy (DCA)
To get started, it is often recommended to follow a programmed investment strategy .
This strategy, more commonly called DCA, consists of investing regularly and for the long term . The programmed investment strategy allows you to base yourself on your income and thus impose a fixed amount to invest at the frequency of your choice.
However, we recommend this strategy only if you want to invest for the long term. The evolution of the bitcoin price remains very volatile and you could have unpleasant surprises if your goal is to make money in the short term.
By taking a broader view, the programmed investment strategy remains a tactic that almost always works. It will all depend on your confidence in your trading abilities .
To maximize your chances, you can also adopt this strategy in addition to one-off investments at prices that seem more consistent with the current bitcoin price.