Do you know what you need to know?
Here are my top 5 tips for getting started with cryptocurrencies.
Disclaimer: I’m not a financial advisor; these tips don’t qualify as investment advice. I’m just sharing my own experiences.
OK, let’s see:
1. Do your own research
The first and most important rule is to do your own due diligence!
No matter how long it takes, how many videos you have to watch, how many articles you need to read, and how many online courses you need to accomplish until you put the pieces together.
Always ask until you feel 100 percent confident that you know what you do. Never invest based on others’ advice. No matter how much profit you are promised, only put money into something you can take the risk of it.
2. Learn the terminology
To understand cryptocurrencies, you must first become familiar with the terminology.
And it’s important that you not only read and look at these terms but also make sure you understand what it’s all about.
You may not fully understand what blockchain means and what principles it works on. But the more you study it, the more likely it is that the pieces will come together. Here is a list of the terms you should look for:
- Blockchain (public/private)
- Custodial wallet provider / Non-Custodial wallet provider
- KYC (Know Your Customer)
- Network fee/ Minors
- Peer to peer
3. Learn FinTech
I am sure that you have heard of FinTech.
If I want to define it briefly, Fintech is a term used to describe financial technology, an industry that includes any technology in financial services – from businesses to consumers. Fintech describes any company that provides financial services using software or other technologies and includes anything from mobile payment applications to cryptocurrency.
In general, fintech describes any company that uses the Internet, mobile devices, software technology, or cloud services to connect to financial services.
4. Did you know you don’t have to buy 1 whole Bitcoin?
Today 1 Bitcoin is equal to $ 12,174.
If you’re thinking about buying, don’t be concerned, you don’t have to invest that much. For starting, I bought $ 50 worth of Bitcoin. So the balance in my wallet looked something like 0.0042 BTC.
Our eyes, which are used to traditional money, maybe a little dazzled, but then you will get used to it.
The saying is true that less is sometimes more.
5. Don’t spend your Bitcoin
My advice is purely informative. And this last one in particular.
Investments – this is especially true for Bitcoin – are mostly long-term. Don’t think you will be a millionaire in a week or month.
Bitcoin is highly volatile. Of course, there are various analyzes and predictions as to where the market is heading. I’ll share one with you.
And this is Bitcoin halving.
The Bitcoin halving event is when the rewards of mining Bitcoin transactions is cut in half.
This event halves Bitcoin’s inflation rate and also the rate at which new Bitcoins are released.
All previous halving events correlated with intense boom-bust cycles that ended at higher prices than before the event.
The last Bitcoin halving happened on the 11th of May 2020, and now we are patiently waiting for the miracle.
If you have any questions, feel free to contact me!
Information is Power.