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What to consider before buying a crypto coin?

Every journey starts somewhere. I have been there. I have made all sorts of mistakes and I have surely learnt a lot.

My journey into crypto started in 2018. I would have started even earlier but I had all that fear every one has when joining this sphere of investment. It is a scary start indeed. We have always been told how crypto is all gambling and a very risky venture. We have always been warned by our friends as well as our governments. I am not a kind of person who likes being told what to or not do. I chose to find out for myself what crypto was all about. I sought all information about crypto from internet of course. In my country, it would be a big mistake to seek crypto knowledge from others. So many people have fallen in hands of crypto conmen.

Investing in crypto just like any other investment involves taking a calculated risk. You must be someone who does not fear to lose (of course that is easier said than done). The truth is you should be some one who acknowledges that there is no gain with out loss. You should only invest an amount of money you are willing to lose. You should be willing to forget all about the money you invested for at least a year. Crypto is a relatively new concept and it is still sort of an experiment. Most of these crypto projects are starting some thing completely new and so needs time to mature. You should be willing to wait and let the project gain momentum or get discovered. The worst mistake you can do is to hop from one project to another. In crypto, that is totally wrong. When you invest in a coin, you should only sell when that coin has grown above you entry level. You should decide on your exit point (depending on your profit target of course).

I think the most important point in crypto investment is the choice of a crypto exchange. You should be very careful when selecting an exchange. You should always research about an exchange before investing. A good exchange should have really high trading volumes and a good number of coins. It should also have a presence in a number of countries. That is to say, it should be well established. Be careful not to fall for crypto scammers. These usually promise very nice deals (too good to be true deals).

After selecting an exchange, it is important that you create and verify your account on that exchange. All exchanges are required to do KYC (Know Your Customer) checks before you can be allowed to trade on their platform.

Success in crypto investment is all dependent on one’s knowledge levels. Research as much as possible about crypto and the different coins. Always DYOR (Do Your Own Research) before for investing in a coin. Make sure you understand the project as much as possible. Do not make investment or financial decisions basing on social media or because some one said. You should be convinced or be well informed about the project and its utility. You should ask your self why the project is of any value. What is it trying to bring on the market? Is it solving some problem ( a legit problem)? Is there any thing special about the technology it is bringing on the market? Those are some of the questions you should be able to answer before you can invest.

Crypto is a very new and lucrative investment that should be embraced by every one. It is important that you educate your self about crypto currencies since there is a very high possibility there are the future of finance and investment.

Recommend0 Simily SnapsPublished in All Stories, Non-Fiction, Opinion Piece, Personal Narrative, Self-Help