Learn the Vocabulary
You don’t need a degree in finance or economics to understand crypto trading, but it is advisable to look up investment methods and best practices before you start (long and short position, stop loss, take profit, index, etc.). It also helps to become familiar with the terminology and jargon used in the crypto community (Hodl? Moon? Shitcoin?). All the relevant information can be found with a quick Google search. Getting to know the basic strategies and vocabulary for investing will help you in the future to choose the right assets, find the best opportunities, and analyze market trends.
Only Invest What You Can Afford to Lose
Simply put, sinking your last cent into investment isn’t a good idea. Before you think of investing, make sure that you are in a safe financial position. This means paying off debts first of all and saving up a financial safety net. Being in debt or having no savings will put constant psychological pressure on you. This often pushes beginners to act emotionally and make mistakes. An investor should always act rationally, so put your own financial affairs in order before starting.
Get Into the Right Mindset
Psychological stability is a must-have trait of any successful investor. It is necessary to be patient and mentally prepared for losses and risks. The cryptocurrency market is highly volatile; assets can first go down by 20% and then go up by 30% within a day. You don’t want to panic and sell off all your assets before they go up again! In this situation, the ability to keep calm and rational, plus the willingness to take risks, is the key to success, so prepare yourself mentally in advance.
Study the Market
Up-to-date information is the main tool of a crypto investor. On any given day, a good investment could be cryptocurrency, crypto assets, innovative tech companies, or financial instruments. Finding the best one means digesting a combination of news, expert opinions, and analytical data. A wise investor will stay up-to-date and research the news, social media, and crypto community sites to gather information. The demand and market performance of an asset tends to rise in tandem with its level of media coverage, which makes it more attractive to investors.
Create an Investment Strategy
Choosing the right investment strategy to use depends on the specific asset. To start with, it is necessary to have a clear idea of why you are investing in that particular asset. Base this on your research of the market history and investment theory. Later on, take care to follow the chosen strategy, making adjustments not under the influence of emotions but only on the basis of an objective analysis of the current situation.
Choose the Right Platform
The best platform for you depends on the specific assets that you’re interested in and your investment strategy. Different exchanges and services offer various features and perks: crypto staking, trading synthetic assets, trading cryptocurrencies with leverage, and others. You’ll also want to check the available payment systems, commissions, technical specifications, and other details before choosing one that synergizes with your investment strategy.
Learn About State Regulation
The government’s attitude toward cryptocurrency directly affects the ability of investors to operate. Some countries favor a laissez-faire, free-market approach to crypto, e.g., Malta, Sweden, and Singapore. Other countries, on the contrary, hinder the development of the cryptocurrency market by trying to control it (for instance, the U.S.). Essential aspects of public policy to look up include the legal registration of investment activities and taxation.
Choose and Install Apps for Your Daily Work
Specialized programs and mobile applications allow you to monitor quotes, manage your account, make transactions, keep up-to-date with relevant news and analyze the ongoing market situation. It will be enough for a beginner investor to have a few on their smartphone for easy access to all the information they need.
