Crypto has all the current and the potential investors in its grip with the promise of it being ‘the future currency’ in the world. In the moment of excitement of being a part of something revolutionary, there are some points we might forget to tick off our checklist. And I am here to remind you your set of dos and don’ts while investing in crypto. Before we proceed ahead, I advise you to research and decide whether cryptocurrency is the right choice for you. And I would also suggest you to check other investment related articles on the website for you to help finalize your right investment choice. Now that you are all set and ready to invest in cryptocurrency and be among the 300 million investors, let’s start with our checklist of crypto dos and don’ts.
Don’ts of Cryptocrypto
Well while facing the choice of what to tell you first, either the green flags or the red ones, I decided to pull my handbook of red flags first. Well, because precaution is better than cure, isn’t it? So here is your list of don’ts when it comes to investing in cryptocurrency. Get ready to take notes, dear you!
- DO NOT believe everything social media feeds you:
This might resonate with all of the new investors who are here. While researching about crypto your social media algorithm must have been filled with all the influencers who claim that they know the ‘best strategy’ that will have guaranteed returns for you. Some might promote one currency, shun down the other, or not like it altogether. Well, someone has to be truthful here, and let me be the one to do the honor: Every person has their own customized set of investing strategies, and hence, what might be the ‘best strategy’ for that influencer might not work for you, and what might not work for your favorite celeb might just work wonders for you! So yes, my advice to you will be, research, research, and then invest; and definitely stay away from self-proclaimed experiences financial experts. Before following anyone, check their credibility.
- DO NOT invest in crypto just because your friend did:
When we say peer pressure is real, we not only talk about decisions like alcohol, social media followers, career race, having that perfect house and life, it can also penetrate itself into decisions like the assets you like to invest in. So, if you are looking to invest in crypto just because your friend, acquaintance, or a neighbor, I would suggest you to stop. Crypto is an unregulated instrument and therefore, if anything goes wrong, there is no turning back. Being inspired is a definitely a green signal, but if you invest into crypto without knowing what it stands for, well my friend, you might be in for a rollercoaster ride. So, I suggest you to first research and see whether crypto is something you really want to invest in before you decide to hop into the wagon of the frenzied currency craze.
- DO NOT be impatient:
This might be some of the most repeated advice you will hear whenever you ask people their views on whether to invest in crypto or not. But just because it is the most repeated one, doesn’t mean it might not be a most easily forgotten one! The tempt of the numbers and huge gains might make you think that it is a quick game… However, on the quite contrary, if you are lucky, you might have gains in the short period or you might suffer loses too.. Because crypto is nothing but a volatile asset..And nothing but another type of investment..so while you may get lucky, this might not be the case forever, so let’s not forget the golden advice! Follow the basics of investment, and apply them, even to crypto.
Dos of Crypto:
Now that we have sorted out all our red flags and we know what all we should avoid, let’s now turn our vehicle of knowledge to the stop of green flags: The dos of investing in cryptocurrency. These are some of the essential tips you must do to enhance your sense of security and some things you MUST remember while dealing with crypto. So, here we go with them:
- Own your keys:
Key is the asset that unlocks your mined cryptocurrency. Something as important as this we all will be on the same when I say that, should not be left in someone else’s hands. Instead, own your assets and keep them safe with you. For this, you can use a self-custody wallet just like a normal wallet that you own to protect your holdings.
- Always have a backup strategy:
Not everyone might tell you this, but we all know that life does not always go just like we want it to go. And therefore, one should always wish for the best, but also be prepared for the worst. Therefore, always have a backup plan in case something like theft, fire, or flood happens, ensure that you will have access to your wallet. And you will have a peaceful night’s sleep always.
- Use Two Factor Authentication:
Well for today’s last do, I have brought to you something that might sound trivial initially, but can be a major factor in protecting your assets in the long run. In the world of hackers, thefts, and scams, a two-factor authentication ensures that they cannot gain access to your accounts easily. And hence, though it might seem like a hassle to you to have a 2FA on, but you might just be enough thankful for it someday, for who knows what the future holds!
I sincerely hope, you found what you were looking for, and that this blog gave you some insight and deeper knowledge than what our beginner’s guide might offer (Which by the way, you can check out on our site!) That said, I wish you happy investing. Until next time!
Also Read: Stars in Indian Crypto Market