6 Tips to Follow Before Buying Cryptocurrency


The following advice will assist you in developing the best crypto investing strategy to maximize your profits. - Published by Kunal Chowdhury on , and was last updated on 2022-12-13T16:29:56Z.

6 Tips to Follow Before Buying Cryptocurrency
Follow us on:    Twitter  |  Mastodon  |  Facebook  |  WhatsApp  |  Telegram  |  Google News

Despite the fluctuations and decline of the crypto market in 2022, long-term investing seems to be still popular and profitable. The following tips will help you build the right crypto investment strategy to maximize your profits.

 

6 Tips to Follow Before Buying Cryptocurrency

 

6 Things to Think About Before Investing in Crypto

The crypto market is full of various attractive offers. There are many temptations around: digital gold, DeFi solutions, anonymous currencies, NFTs, stable coins, new and promising crypto projects, cheap and lightning-fast transactions. It makes you want to go on crazy crypto shopping binges.

 

However, just like in normal shopping, you can screw up by buying “bad goods” or something you simply don’t need. Therefore, unless you want to waste your money, there is no need to rush into it. Just take your time and follow the simple guidelines below.

 

 

Tip 1: Think About What You Want

It may be too obvious, but true: invest in the crypto asset that meets your requirements, needs and what you want to get from it. The choice may vary depending on whether you want to keep the currency for a long time or use it for transactions from time to time. Also, privacy or the possibility of developing decentralized solutions may be critical to you.

 

Tip 2: Evaluate the Prospect of Crypto

This is the most complex and voluminous aspect. It may include multiple steps, such as:

 

 

  • Study of current market performance (eg capitalization, trading volume, circulating supply, etc.);
  • Technical analysis for determining market dynamics;
  • Analysis of coin prices of previous years;
  • Exploring price predictions from top crypto analysts;
  • Crypto project roadmap research;
  • Cryptocurrency adoption rate estimation.

 

 

Tip 3: Compare Cryptocurrencies

Sometimes it seems that some cryptos are absolutely no different from each other, especially competing ones. That is why it is very difficult to make a choice. However, no two crypto assets are exactly the same. You can make a comparative table of the coins you are interested in, or you can search for ready-made ones on the Internet.

 

For example, when comparing Solana and Elrond, look for something like SOL vs EGLD.

 

 

Tip 4: Choose Your Crypto Community

Buying some coin, you do not just stuff your portfolio with another investment - whether you like it or not, you join a certain community. Therefore, before buying crypto, wander around the official pages on Twitter, Instagram and the like. Look at how many followers they have and how active they are. This is one of the indicators of how alive a crypto project is.

 

Tip 5: Keep Your Coins Safe

These days, hackers are smarter and more resourceful than ever. However, modern digital wallets are endowed with protective mechanisms that provide a sufficiently high level of security. Make sure you find safe storage for your future coins.

 

Also, make sure the wallet you choose supports the crypto you want to invest in. It is recommended to keep most of the assets on separate wallets - this is important in case of cyber attacks and other hacker actions.

 

 

Tip 6: Choose a Reliable Exchange

The choice of a resource where you will get or exchange your coins is a very important step, since you, in fact, give your money to it. And since there are almost as many exchanges as there are cryptocurrencies, you can slip up by trusting your money to scammers or those who change at an unfavorable rate.

 

When choosing a crypto exchange, pay attention to: reputation, registration complexity, exchange rates, commissions, limits, privacy level, and the like. For example, Godex cryptocurrency exchange does not require registration and does not set limits on the exchange. If it matters to you, you can explore this exchange more.

 

 

Wrapping up

This list of recommendations could easily be continued. Investing is a science that requires a careful and thorough approach. But, since the outcome of investing in a particular coin also depends on luck and factors that are beyond your control, you can still incur losses even if you do everything right.

 

In any case, by investing thoughtlessly, you can lose much more. Therefore, a competent strategy and good luck to help you!