A thought that “it would be nice to buy cryptocurrency” comes to mind at different times and with various motivation – some people want to use Bitcoin as a “bank” for personal savings, others are looking for trading adventures and fast money, and still others are interested in the “completely new experience” and the opportunity to have a piece of albeit digital but future. We’ve prepared 5 tips on what you need to know before buying a cryptocurrency and what to do with coins after.
Consider the e-wallet
This is how you should start: any digital currency needs to be stored somewhere. There are a lot of ways how you can do it, but for the beginning, you should familiarize yourself with two options: a light and a heavy wallet.
If you are aimed at buying a small amount of digital currency, then the so-called "light wallet", which is available directly on your phone, is the best option. However, you should make sure that the wallet allows you to transfer your account to another device, and that the rate for entering/withdrawing a currency is favorable.
In case you have a large amount of money, then you should install a full-fledged (heavy) wallet. This is the safest option because, in reality, you download all the digital coins to your computer.
Do not buy digital currency at the moment of its fast-dynamic growth
Hearing from someone that Bitcoin has set a new growth record, you should not rush to register a digital wallet and search for an electronic currency exchanger. After a fast-dynamic growth, any cryptocurrency either experiences a correction or a rather sharp decline. But in any circumstance, the probability that you will catch the rushing train is usually smaller than the chance that this initiative will end with disappointment and failure. It is better to wait for the time of the decline of the currency and buy it at the knock-down price.
Do not do slapdash actions
This is a very important tip. Having spent a lot of money on the purchase of cryptocurrency, a novice and anxious owner of digital wealth often splashes the accumulated adrenaline out the rash actions. The slightest change to the decline in the currency rate is horrifying to all the novice cryptocurrency investors. Bitcoin has already experienced some crashes more than once – with the first greatest hacking attacks, a ban on ICO in China, and even with a mere negative mention of the digital coin by any important investor. But after a while, the course stabilized, and everyone could see its growth again.
Keep money in Bitcoin
Nobody can say what will happen to Bitcoin in a month or a year. However, this cryptocurrency has the greatest level of credibility among other cryptocurrencies. Doubtful rumors encourage novice traders to take risky actions to sell Bitcoin and buy other digital tokens in hopes to make quick money. Thus, they are often left with nothing. So you should keep some of your capital investment (at a minimum 50%) in Bitcoin.
Do not sell your car, house, and kidney to purchase digital currency
There are a lot of stories of despairing people who sold all things and purchased cryptocurrency, which in the years since made them millionaires. However, these stories have a downside. Perhaps, you will be able to raise the capital, but there is no guarantee that it will happen quickly. Moreover, it is unlikely that turning $10 000 into $30 000 worth such a risk. After all, things may turn out differently. Remember, you can make bank not only by playing the roulette but also with the help of coldness of head, cautiousness, and awareness!