If you are looking to get involved in cryptocurrency investing then you have picked an exciting time to get started. Over the last 6 months we have seen more first time investors than ever before in this market, and that shows no signs of slowing down any time soon. Experts in the industry like Robert Testagrossa however have been warning of the importance of having a plan prior to investing in this market. With this in mind today we are going to discuss some of the things that you should be thinking about if you plan to invest some of your hard earned cash into the cryptocurrency landscape.
Oddly enough, you should really be thinking about how you are going to get out of crypto, before you even get in. The reason for this is that there are a number of approaches which people take to crypto, and this will sway your actions in the future. If you are looking to make a quick buck then that is fine, you can get in, hope for a push and then get out and enjoy the money. Alternatively some are in it for the next 5 or 10 years as they believe it to be the future of money. The dangerous group are those who are unsure, because this is the group who fail to sell when the going is good, and then lose out when things inevitably dip. Consider your financial situation and what exactly you are hoping to achieve here.
Unlike stocks and shares, crypto value is not dictated by how well the Dow Jones or the Nikkei is doing, nor is it heavily influenced by how well a business is looking over the next quarter. With this in mind, and during your first few weeks and months, you need to gain an understanding of what value means in the crypto space and what influences value. Learn about mining strategies and how whales can drastically shape a market.
Safety and Security
Next up you need to be thinking about how you will buy your crypto, where you will store your crypto and how you will ensure that everything is as she and secure as it needs to be. Unfortunately the whole point of things being decentralized is that there is no bank behind you offering protection agains loss or hacks, make sure that you have a security plan in place for your investments.
There is nothing that anyone says which you should take as guaranteed, but there are many great minds out there who will share great information which you can then follow up with yourself. Identify the people who you believe offer solid advice and start following them now, as they will be able to help you to learn more as you go. These people are also great at helping you to get started in the right way, and avoid any mistakes that many newbies make.