WARNING! Don’t Buy Any CryptoCurrency Until You Read This

Don’t DARE Invest In Cryptocurrency Without Reading This And Implementing…

It is quite surprising that cryptocurrencies are still holding their ground up to today. Notably, the new currency has seen a lot criticism come its way, especially from traditional financial institutions.

However, the government side is also remarkable in trying to stifle the take-off of the currency. In fact, China banned all activities related to cryptocurrencies and initial coin offerings (ICOs).

But why?

The common line of attack is the unregulated nature of the new market. In addition, the criticism calls out the volatile nature of the assets’ prices. In fact, many regulators believe the cryptocurrency is a favourite conduit for laundered money. However, crypto enthusiasts reject this view vehemently.

Against this backdrop, the cryptocurrency market has seen booms on unimaginable degree. In fact, followers argue that the market has not seen its best days yet. Perhaps this explains the rise and rise of investors coming into the nascent market. However, it is notable that there is very little information available on how one can make the best bet in the market.

Therefore, this article intends to offer directions to a newbie who wishes to join the market. Perhaps for prudence’s sake, it is sensible to acknowledge at the onset that truly, the market is volatile.

Warning #1: Understand the fundamentals of cryptocurrency

Cryptocurrency is like any other kind of currency. According to an article on Forbes, investors should note that cryptocurrencies exhibit basic characteristics of money. Per the article, crypto are typically units of measurement, they store value and they transfer value.

However, the article advises investors to “consider if and when these functions are only a byproduct of the objective inscribed by the creators into the asset’s software code before investing in a cryptocurrency.”

An investor should understand the difference between a cryptocurrency coin and a cryptocurrency token. Coins are fundamentally for transaction while tokens are similar to a digital banker’s check. They represent a claim to asset. Normally, they are referred to as smart contracts.

Warning #2: Diversify your options

This is a classic tenet of investment. A good investor learns to hedge bets. Basically, when one decides to put money in digital assets, one is basically betting on its price. Importantly, cryptocurrencies are a fairly new technology. That is to say the market has not seen the roughest of times. Therefore, the prices of cryptocurrencies are at the moment quite volatile.

For that reason, it is impossible to know which cryptocurrency will drop out of the market in the next bust. To be safe, it is prudent for an investor to put their money in a well spread portfolio.

Warning #3: Maintain high security for your data and computer

Since they are digital assets, this means we mainly store them on our computers or cloud service. As a result, the assets are at risk from hackers and fraudsters. The Telegraph advises that one should keep anti-virus software up to date. Also, the publication warns against giving private data online especially if one keeps all crypto data offline on the system.

However, it could also be dangerous to give out private data even when you store data on cloud services.

Further, investors should ensure that they store their passwords away from the computer. This is especially important for account login password keys. Experts mostly recommend storing such data on flash drives and ensure they are kept safe.

Warning #4: If you store crypto in wallets, keep them offline

This is another very crucial matter that The Telegraph addresses. According to the publication, cryptocurrency wallets are number one prey for hackers. Therefore, keeping them online is quite a risky business.

For optimum security, experts advise that one should keep the data on wallet on a cold storage device. This refers to a device such as a USB drive or a computer which is not connected to the internet. The significance of offline or “cold storage” is that there is no way hackers can reach the device.

Staying offline keeps the computer cold and immune to advances by hackers. Make sure you ask us about our new “Military-Grade Encryption Cold Storage Device” portable technology.

Warning #5: Do thorough background check

In fact, this is a very important step which should come at the top. However, since we are here, research is the foremost step one should take. This is for the reason aforementioned.

The cryptocurrency market is still young and unregulated. Therefore, there are many fraudsters roaming the gray areas waiting to feed on unsuspecting and gullible investors.

A deep research in an ICO, for instance, will help the investor to raise questions and probably spot red flags. Also, research helps in that one gets to hear what other people in the community are saying about that particular asset.

Warning #6: Be in control of FOMO

Normally, there are different motivators to investments. It could be for the anticipated returns which may be quite high. For whatever, reason, it is important to make sure that one does not enter a market out of fear of missing out (FOMO).

As a cryptocurrency investing principle, this is the most wrong motivation to invest. All market experience booms. Cryptocurrency market may be in a boom today but tomorrow is uncertain. Remember the dotcom boom and bust? Therefore, making decisions purely out of research and a desire to invest is more crucial.

Warning #7: Choose your broker carefully

Another important step that should come at the head of this list is the investments broker. These are the intermediaries that manage trades and other important transactions. Since they handle an investor’s money and profits, one should make sure to do deep research on them.

Background research will enable an investor to get the market opinion on the particular broker. This will give the investor an initial idea of how the broker conducts business and their charges. Also, investor will understand their business model and whether they can hold off a storm in the market.

Warning #8: Understand leverage and how you can exploit it

Just like the forex market, cryptocurrency market utilizes the leverage technique. This is because there are currency pairs in the market on which traders put bets. Therefore, it is prudent for the investor to understand what leverage is and how it can help earn profits.

Also, understanding leverage will pre-warn the trader regarding the risks that accompany the technique. An investor will do good to know that leverage can lead to one losing an entire investment in the market.

Additionally, understand if the firm that offers the leverage option is regulated by the relevant authorities. This is part of the background check aforementioned.

Warning #9: Anticipate volatility

Like earlier mentioned, the cryptocurrency market is quite young and prone to volatilities. Therefore, it is prudent for the investor to keep an open mind and expect prices to fluctuate wildly. This will happen for quite some time until the market is mature enough.

In an interview with Fortune, Chris Burniske, the co-author of the book Cryptoassets, advises that price volatility is inevitable. This is for the reason that the market still has a lot to accomplish; important among them being official regulation.

Warning #10: Participate in the blockchain community

 Get involved and associated with the leaders and members of the community.  Ask questions and gather as much data you need to make a viable decision.  

Also, make sure you do some background checking on the companies associated with the ICO because the past usually do catch up with the company when going public.

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