From the beginning of 2020, a new form of digital assets has started to gather attention all around the world: cryptocurrency. Unlike paper money or as in Forex, crypto does not exist in any physical form and is thus not regulated by any central authority. Instead, they are functioning using the famous “blockchain” technology, in which several computers are linked together as peers in a network and information about a certain person’s crypto activities such as purchases, withdrawals or mining is duplicated and kept as a ledger on all those computers. This is one of the reasons why crypto is so famous; it is technically impossible to penetrate or tamper with in any way whatsoever Cryptocurrency.
Perhaps the most famous of all cryptocurrencies is the Bitcoin, which almost everyone has heard about by now. It started off as a normal blockchain currency in 2009, but it was not until 2010 when the first transaction using Bitcoin was recorded; some guy in Florida bought 2 pizza for 10,000 BTC. Little did he know that had he decided to save up, he would have been a billionaire now.
Human’s are programmed to be critical by nature; even when Edison invented the lightbulb in 1879, he was ridiculed by British Parliamentarians. Similarly, when people initially started giving BTC attention and began preaching its long-term benefits to others, they were ridiculed by their peers for believing in such non-existent nonsense. The very same people who were previously insulted, now enjoy their fortunes in millions now. Some have even wound up on Forbes, for that matter.
Since the release of Bitcoin, many other cryptocurrencies have sprung up as well. If you, like many others are looking to break into the world of cryptocurrencies, here are a few tips to follow:
Always perform your due diligence
In the 21st century, doing so should be no more of an excuse. It goes without saying that before investing in any certain coin, you should first get a know-how of its trends in the world of cryptocurrencies, as well as of its overall standings. Due to easy accessibility to social medias and the widespread use of WIFI, you can access the whitepapers of any coin you wish to investigate, and therefore be prepared for even the most unexpected of situations in your journey of crypto-investment. After all, its your own money that’s at risk!
Don’t place all your eggs in the same basket
This saying is improvised in the world of crypto to form “don’t place all your crypto-coins in the same basket”. What this means is that whatever the amount of money you have to invest, you should never buy too much of the same coin. As with everything else . diversification is key. Once you’re done with your due diligence, now’s your opportunity to invest in multiple coins and hope for the best to .
Tread carefully around mobile wallets
As attractive as the ideology behind it might seem, trading via phone is extremely risky business. Not only are mobile phone’s less secure than your conventional PCs or laptops, but the presence of social media apps like Facebook or Instagram amongst others probably means that they have access to much of the information you have stored on your phone. This puts not only your present portfolio, but also any past transaction history you might have at risk as well Cryptocurrency.
Similarly, the usage of mobile wallets is also simply too great a risk. Not only is your information at risk through the aforementioned, but they are much more prone to being compromised both physically and electronically. What this means, is that you could lose years of investments, all in a heartbeat
Thus, always remember that you can hit the jackpot by not only gambling your way through the crypto world, but also by having sound knowledge, education and awareness about how this world seems to work. If you follow the aforementioned tips, you will hopefully avoid any major difficulties through your investment journeys. However, always remember to gain experience from not only yours but other’s mistakes, be aware of all important events that might affect your coins, and make your choices with a clear mind that you won’t regret!
Interlink :- Cryptocurrency: Taking the world of Finance by storm