Are you looking to get into cryptocurrency for the first time? If you don’t know what to expect, perhaps you need to get back to the basics. Here are a few things that you might find important if you are planning to get into the cryptocurrency business.
What to Expect from Cryptocurrency
One of the things that you need to be aware of is that cryptocurrency is quite volatile. This is when the prices swing wildly, which is quite concerning because gains and losses can happen quickly in this manner. Likewise, there are no guarantees because you could double your money or lose most of it.
Note that fake coins, rug pulls, and phishing sites are common with this type of endeavor. Moreover, you may be taxed for your profits in crypto, particularly in countries like Australia. However, despite all that, you can expect innovation and opportunities here. That is because crypto is not only Bitcoin, there are also DeFi projects, NFTs, and blockchain infrastructure that you may find profitable as well.
Learning the Basics of Cryptocurrency
You have to understand what blockchain is in the first place. There are differences between coins and tokens that you also have to pay attention to. In addition, you need to consider a reputable exchange, starting with friendly, regulated platforms.
The next thing that you need to do is to create and secure your wallet. Thus, you have to exchange wallets for small amounts. On the other hand, you can also use hardware wallets in order to achieve better security. The secret to this business is to start small. So, you have to invest only in what you are prepared to lose.
You can begin with major coins like Bitcoin or Ethereum before you can venture into altcoins. But most of all, you have to stay informed by following the latest social media trends or buzz related to cryptocurrency.
Growing Your Crypto Holdings Safely
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Dollar-Cost Averaging
It is advisable that you invest in a fixed amount regularly, instead of all at once. This will smoothen out the volatility and avoid bad timing. The best time to do this is on a weekly or monthly basis.
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Hold Quality Products
You also have to stick with top-tier coins, such as Bitcoin and Ethereum. Bitcoin is best if you are considering a store of value, while Ethereum is best for smart contracts.
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Staking or Earn Programs
You can also earn passive income if you will lock your coins. Note that many platforms offer interest for holding coins, which will be advantageous for your financial endeavors. But you have to make sure that you choose a reputable platform.
If possible, you have to avoid shady DeFi projects.
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Purchase the Dip
It is often a good time to buy more coins when the market falls. But only do so if you believe in the project long-term.
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Reinvest Wisely
Profits are there for the taking, but only do so occasionally. Instead, take time to reinvest into solid coins or stablecoins. Not every trend is a long-term solution you can trust.
Are you looking for a Web3 consulting agency and blockchain company for your crypto business? Feel free to contact us as we can provide a custom development package that will surely propel your way to success.
