With bitcoin touching a new all-time high every other month, the cryptocurrency market is booming like a rocket. The buzz bitcoin is generating is hard to ignore, and it is attracting both small and institutional investors in large numbers.
If you are following the news for a while now and have decided to jump into the crypto space, then you have made an excellent decision. People who joined the market in the January of this year are already reaping crazy profits, which is a clear indication that there is some serious money to be made in the crypto space.
However, where the crypto market is highly rewarding, it is also quite risky. Unlike the stock or forex market, cryptocurrency is highly volatile. A market dip in this market could feel like a market crash and can give you a serious scare. But you shouldn’t be scared of dipping your toes into the crypto market just because it is risky. If you are doing everything by the book and are trading your coins after doing proper research, you will be able to mitigate those risks.
In this article, I have mentioned a few useful tips and interesting things that every cryptocurrency beginner must know. Let’s take a look:
Bitcoin Is and Will Always be “The King”
Many people who are joining the crypto space in 2021 are mainly looking for Altcoins that can someday become as big as bitcoin. A lot of newbies think that bitcoin is already overpriced and cannot go any higher, but that is not the case. In fact, the market is highly influenced by bitcoin, and it is rare for altcoins to go up when bitcoin is falling.
That is why you must not ignore bitcoin and consider investing in it. It doesn’t matter whether you are planning to trade cryptocurrency or just want to hold it long term; you must consider buying some bitcoin.
If you are looking to buy bitcoin in Australia, you can sign up for an exchange and can buy it from there. You can also buy it in your wallet directly from a person or service and can later sell it on PayBTC to reap profits.
Never Sell in Loss
Unless the market is crashing, it is strictly advised that you not sell your crypto at a loss. As mentioned above, the crypto space is highly volatile, and if you are moving from stock or forex trading, it is going to give you jump scares at times.
If the price of the coin has fallen lower than the buying price, then you must wait for the price to go up before selling it. A lot of people sell their coins at a loss just to enter a new trade, and it is not a wise decision. Once you have bought crypto, be patient and hold on to it for dear life.
Invest in Projects Not Coins
Once you start following the crypto market, you will come across new altcoins every week that people will be talking about. Some of these coins will have some real potential, but a lot of them are just hype and can put you at a loss.
It is advised that instead of focusing too much on the market sentiments and news, you should do some research and invest in projects that have some real-world applications and are improving the crypto space. It doesn’t matter what the charts are telling you or how popular a cryptocurrency is; if it doesn’t have any applications, it will not give you any profits in the long-term. You can invest in those coins for short-term hold, but even then, it is quite risky.
Stay Up to Date
If you want to make money in the crypto space, then you need to learn about the market and how it is evolving. It is crucial for you to understand how the market works and how it is continuously evolving. You also need to stay up to date with the news of other financial markets as it is crucial.
You can learn about any cryptocurrency and find new gems with the help of websites like Coinmarketcap. You can also follow some popular crypto blogs to get the latest updates every day. You need to know exactly where the market stands before making a trade if you want to avoid losses.