Cryptocurrency has been a hot topic in recent years, with more and more people considering investing in it to reap its potential rewards. However, with great reward comes great risk, and it is crucial to be well-informed about it before you jump into the crypto world.
The world is becoming highly digitalized as the years go by, and cryptocurrency is one clear example of this. Another example is finding websites where you can play swiss slots online, from the comfort of your home.
From diversifying your investments to limiting them, and from that to looking at the wider picture while being wary of scams, we’ll explore six crypto hacks in this article that you need to know to invest in cryptocurrencies wisely.
Buckle up and get ready to learn how to navigate the exciting yet volatile world of crypto!
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Don’t Go All In
The average loss per crypto victim in 2020 stood at $22,000. This was mostly because of the plummeting of particular currencies. If you intend to invest, you may be better off diversifying by spreading your money over numerous digital currencies.
As with stocks and shares, this will shield you if the value of one of these plummets, especially considering the volatile nature of cryptocurrencies.
Worldcoin and safemoon seem to be two of the safer currencies.
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Don’t Overdo It
Because the values of cryptos are ever-changing, you should always limit the money you invest. Make sure that you don’t make the same mistake as others by investing more than you can afford losing and regretting later.
Considering the high-risk nature of this transaction, more traders lose money than don’t. Therefore, follow a pre-set plan and don’t spend too much in a single currency, no matter how well it’s been going. Normally, 5% of the investing capital is considered a good amount.
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Look at the Wider Picture
Crypto is not for the faint-hearted, its prices have been known to vary greatly, falling and rising dramatically every day, if not hour, with investors panicking instantly.
You might be better off leaving your money in the market for months, or even years, to wait for your reward. A currency, for instance, may fall by $1,000 in a single trading day but rise $3,000 over the next month.
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Do not Buy Just Because of the Price
Crypto beginners often make the mistake of buying low-priced currencies because they seem like a good bargain. More often than not, however, they are falling for a reason.
Sometimes, developers leave a project midway, meaning it doesn’t get updated regularly, making the currency an insecure one.
Instead, look at the user rates and be wary of the ones with falling rates.
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Save your Keyphrase
If you use a hardware wallet to store your crypto offline, losing your keyphrase would mean losing all the money. This is because you cannot retrieve your crypto without this code.
Many investors have lost thousands just because they forgot their keyphrase. Therefore, always remember to save it in a protected folder which you can easily access.
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Be Wary of Scams
There are often crypto deals that sound too good to be true, and that’s usually because they are. Mainly there are four types of scams you should look out for.
Scammers often contact victims with “investment opportunities” via email and promise to double, or multiply the amount they invest. Also remember, however, that crypto is never risk-free.
Criminals also often pre-mine a particular small or unknown currency and attract people to it via social media, causing the prices to rise. Selling it all off later causes the cryptocurrency to crash, resulting in losses.
You should also stick with big wallets, like Ledges, Trezor, or MetaMask, and stay away from the dodgy ones as they can steal your crypto funds.
Make sure to research thoroughly to find the most secure coins as investing in fake coins could mean identity-theft.