5 Tips for Investing in Crypto

The internet is overwhelmed with advice for how to invest in crypto, and a lot of it isn’t good, sound or sometimes even safe.

CoinDesk’s Jennifer Sanasie breaks down the investing basics to keep in mind. They can basically be broken into two categories: fundamentals like risk assessment, diversifying and stop losses in addition to safe investing tips.
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Down about 6.67% 9% 32% buying crypto for the first time can be pretty scary here’s how to think about investing in a safe way don’t don’t risk more than you can afford to lose this is like the Golden Rule to all investing it’s a long game not a Sprint

I put my entire life savings into Bitcoin and turned $42,000 into over $100,000 and then lost all of those profits figure out what your budget is for investing based on what you can actually afford without it negatively affecting you make a plan and then stick to it a plan might be something simple

Like having a price in mind which you’ll definitely cash out at for highs and lows that sounds super basic right but a huge problem most investors have is never taking profits chances are the market will move against you at some point so when the going gets good take

The money off the table nobody ever lost money taking profits I’m going to cash out half of it or I’m going to cash out 60 or 75% and I was speaking to a guy at the time and he talked me out of selling any of it some things to think about do

You need to pick a price to exit when will you decide to buy or sell write down these rules and then do not deviate from the plan so I didn’t sell just because I didn’t want to take the loss diversify meaning build out an Investment Portfolio that isn’t

Concentrated in one economic space like crypto no Financial expert would tell you to build an entire Investment Portfolio with crypto alone and this is where I learned my major lesson not to put all of your eggs into one basket for diversifying in crypto specifically don’t be tempted to go all in on bitcoin

Or any singular crypto asset a good way to hedge your bets is to invest in multiple different crypto projects to spread out your risk ideally you want to invest in tokens that exist in different sectors like defi coins or D projects so that if one sector booms while another

Doesn’t you’ll stand to benefit basic trading strategies can save you a lot of money like dollar cost averaging as opposed to buying all at once because of crypto’s extreme highs and lows split up your investment over several months to help average out the cost you’re getting in on so overall it’s cheaper for

Example if you have $5 to put into a crypto project you trust space out $1 Investments over January to April and then there’s your very best friend stop losses which is a type of exchange order that automatically withdraws your investment and stops your losses once it

Starts to dip past a certain point this way if the market tanks while you’re asleep or away from your laptop you won’t suffer as heavy losses now let’s talk about crypto specific tips the golden rule for all crypto transactions is Safety First never forget there are a

Million and one scammers out there who are always looking to take advantage of newcomers first thing they asked for was my 12 word my 12 password keywords and and typed it in that’s where I messed up you know what I mean they’re not gonna ask you for your 12

Passwords that’s where I messed up always always always use two- Factor authentication when creating any online crypto accounts yes it’s tedious but trust me it works never make a digital copy of your seed phrases no screenshots no emails and no text messages keep that stuff safe by writing it down on paper

Make several copies and keep them secure in several different spots and finally be aware of common scams like fake giveaways trading bot scams and fishing emails if someone offers to double your amount of crypto for free it’s definitely a scam and stay away lastly As Old Warren Buffett said buy

When there’s blood on the streets if you’re just looking to buy and hold the best time to enter the market is generally when everything’s deep in the red and prices have crashed thankfully this happens quite frequently in crypto so you don’t have to wait that long