5 Important tips for investing in crypto currencies

Taking the plunge and entering the crypto world can be very intimidating. There is no centralized authority holding your hand, and the rumors and stories circulating around digital currencies can be terrifying. However, with a few simple tips, the first Bitcoin transaction or trade can be far less stressful. Here are 5 tips for investing in crypto currencies!
#1 Do your homework!
There are lots of hype, rumors, success stories and horror stories when it comes to Bitcoin and other digital currencies. Make sure you understand exactly what you’re getting into and don’t risk losing more money than you can afford.

Bitcoin is an exciting world, but it is a world that is complex and confusing if you just enter it in hype. Many people buy expensive cars without knowing how the engine works, and that’s okay, because if it breaks down, there are mechanics and garages. In the world of crypto-currency it’s you against the world, it’s decentralized and there’s no one to hold your hand.

Pawel Kuskowski, CEO & co-founder of Coinfirm, gave this advice for investing in crypto currencies:

The more you understand, the better.

Don’t just speculate about the big money there is to make, go beyond and learn how Bitcoin and Blockchain work. Lucas Geiger, founder and CEO of Wireline, says:

BlockchainThis may seem obvious, but I think the first thing to do is to take time to understand the blockchain. I say this emphatically, because few do. If you don’t know exactly how a blockchain stores secure data (such as coins), then put your investment in the sand.

A good starting point is the beginning – the white paper by Satoshi Nakamoto. Crypto fund manager Jacob Eliosoff wrote

If you have any technical problems, take 10 minutes to browse through the original 2008 Satoshi White Paper. There are only eight pages, is easy to read and an inspiring work of genius!

The great thing about the crypto currency ecosystem, however, is that there is a lot of material and information. Many websites and resources aim to make the technology more understandable.

Moreover, the investment world is also trying to simplify things by making bitcoin more accessible to traditional investors. Introducing things like futures will help people understand how Bitcoin works.

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