The year 2017 bought several dozen crypto-millionaires to the world. And they are not just some rich guys from Wall Street, but ordinary people, who were lucky to be the first to discover the world of investment in the cryptocurrency.
This is not an easy task, since digital money is not very similar to traditional assets. Their rate is very unstable, and often largely fluctuates (sometimes by a thousand dollars) throughout the day.
Beginning investors need to understand that losing initial capital of absolutely any size in the cryptosphere is a matter of 5 minutes. Therefore, investments need to be approached very thoughtfully and only after you figure everything out.
We do not offer you “magic schemes” or “100% working strategy” – never believe such slogans. For beginner investors, we have gathered some tips so that their first investment experience will be a big bonus for the future.
Where to begin?
Choice of cryptocurrency
Currently, there are over 1.6 thousand cryptocurrencies on the market. The most profitable are Ethereum and Bitcoin. However, they are not suitable for beginners. You need to start with something cheaper and less volatile, to practice and figure out the rules of the game.
To determine where to invest, take a look at the top currencies in terms of price and capitalization. A good resource for this is
Register your wallet
To start trading, you need to have a wallet. For a novice investor, options such as a Ledger hardware with a payment of 10,000 rubles or more are not available. Therefore, you can use the online wallet of some free platform.
For example, E-DinarCoin, Exodus, Cryptonator. It is best that the option you choose is multi-currency, available in your language, and providing the convenient methods of replenishment and withdrawal.
Choose an exchange for trading
Here, everything is not so simple as well. It should be also available in a language you understand, providing a large number of currency pairs (including inexpensive altcoins that are interesting for us), good reputation, high daily trading volumes, anonymity. Examples: Exrates.me, Bitflip, Yobit.
Many large exchanges enable novice traders to “play” with the virtual budget. Therefore, you can register, set the parameters you are interested in and try to invest.
Use numerous analytical tools that are provided by rating agencies, cryptographic platforms and even exchanges to develop your strategy. Analyze the historical fluctuations of the cryptocurrency, generalize the information, and, perhaps, you will be able to derive your own “golden formula”.
Keep your eyes peeled
Cryptocurrency is very unpredictable. Do not only rely on expert opinions. On the chart, everything can indicate a downtrend, and the coin will keep its positions or even grow.
Read the news in several sources
The news background influences the cryptosphere. For example, in the middle of May, WSG magazine published information that on May 14th, the US SEC regulator might give the second largest cryptocurrency Ethereum a status of a security – and this means the automatic delisting from all exchanges and the collapse of not only this currency, but also the altcoins based on its platform. As a result, all the cryptocurrencies have collapsed and have not yet recovered.
Usually, many publications, at least – ours, publish articles and news with the opinions of experts. We try to calm down the inexperienced investors, who, after each positive or negative news, rush to buy or sell their assets.
Listen to opinion leaders
Developers, large investors, Wall Street analysts often present their forecasts, talk about plans to implement new and upgrade existing projects. This helps to understand how everything is arranged in the cryptosphere.
Read the glossary
In the investment sphere, various catchy words are very common: a pattern, a simple moving average, an overbought indicator. All of them are directly related to investment. Their analysis allows you to draw conclusions, in which assets it is worth investing in the near future – in growth or in decline.
Do not fall for the tricks of scammers
A variety of fake campaigns in the social media announcing “send 5 coins – get 1000” are a fraud or, as they are also called in the cryptosphere, a scam.
One of the varieties of the scam is the “pump-and-dump” scheme. On the forums, in advertising, social networks, someone fraudsters post the information that they know the news, which will radically change the situation on the market. They invite everyone to join and buy a certain cryptocurrency, until it’s not too late.
The coin grows in price (this is the pump period) due to increased demand, and then the organizers of this “promotion” sell their assets at an unreasonably high price and just disappear with money (dump). As a result, the price of the cryptocurrency decreases, and investors lose money. Such schemes are a commonplace on the crypto-market, so you should be very careful. Now we have presented some of the recommendations for you to consider when entering a crypto-market. However, the scope of investment is much more extensive, and a single article cannot cover all the nuances. We hope that you liked our material and it will be useful for you. We wish you successful investments!