Buying your first cryptocurrency can be a trying experience especially if you’re a beginner. For instance, how much should you buy, and where should you get them?
Fear not, though as we present 5 beginner-friendly tips on how to successfully make a transaction.
Table of Contents
Prepare Your Wallet
The first thing to do is to prepare for the digital asset by getting a wallet that can hold it.
Cryptocurrency may not be stored via traditional means- you will need storage in the form of a hot or cold wallet. These can be an app or a device that can hold the token of your choice.
Depending on your capital and investment type, you will need to use both wallets. A cold wallet will be the place where you store your coins and won’t use it for a long time, while a hot wallet gives you instant access to your assets anytime you want to make a transaction.
Buy at a Low Point
Trading cryptocurrency is like trading stocks- the golden rule is to ‘buy low, sell high’, which means you should hold off buying a crypto when it’s at its peak.
Do your research- has a crypto you like reached a peak? Wait a day or two, or even a week until things have cooled down and the value has dropped significantly. Then, when you still feel like it’s going up then that’s the time to take action.
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Pick a Reliable and Trusted Exchange Platform
The place where you can buy or sell cryptocurrencies is called a crypto exchange, and there’s about a dime a dozen on them on the internet. However, they’re not all legit- some are looking to scam people and make a quick buck.
So, a word of advice- take your time and pick the right exchange platform you can trust. It has to support fiat currency transactions and crypto trading options so you won’t have to switch in-between. Furthermore, it has to have a large user base so you won’t have any problems finding a user who will agree to your terms.
Consider Bitcoin as a Long Term Investment
Bitcoin is the most popular cryptocurrency there is, and people who have a bystander’s understanding of cryptocurrency will certainly know that it’s worth a lot nowadays.
The beginner’s approach to Bitcoin is to buy as much as you can afford, store it and hold on to it for a long time. Only sell when it’s worth selling, or when you’re getting a fortune for what you invested.
Only Buy as Much Without Sacrificing Anything
Cryptocurrency investment should not take over or precede your life. This means you shouldn’t sacrifice your job, house or any essential asset just so you can buy and trade cryptocurrency.
While there are many success stories of Bitcoin millionaires, it’s better to take a cautious approach and start small.