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In recent years, cryptocurrency investing has become increasingly popular. With the promise of massive returns, it’s no wonder that more and more people are getting involved. However, cryptocurrency investing is not without its risks. For beginners, navigating the complexities of the crypto world can be difficult. That’s why it’s essential to have a game plan before taking the plunge. To help, here is a list of 6 tips to ensure safer cryptocurrency investing for beginners. From understanding the risks to diversifying portfolios, this guide will provide the essential information to get started and make the most out of your cryptocurrency investments.

Study the market

The first and most important step in investing is understanding the market thoroughly. This means knowing everything you can about the crypto market in general, including the different types of coins available, the technology behind them, the roadmaps of various projects, the advantages of blockchain technology, and the advantages of different exchanges. Knowing the market will give you a greater insight into which cryptocurrencies are worth investing in. This knowledge will also help you avoid getting scammed by fake projects and ICOs.

Research the different currencies

Once you’ve studied the market, it’s time to dig a little deeper and research specific currencies. Start by creating a list of potential coins to invest in. Avoid focusing on just one or two. Instead, try to diversify your portfolio and invest in various currencies. When researching cryptocurrencies, you should look for the following factors:

  • The team behind the coin – Who is in charge of the project, and are they reputable? What is their track record? What are their strengths and weaknesses? What are their goals?
  • The whitepaper – What problem is the coin trying to solve? The roadmap – What is the team’s roadmap, and have they already adhered to it?

Research reliable and secure wallets

Before you invest in any coins, you should select a wallet to store your investments. To help keep your funds secure, you should choose a cryptocurrency wallet that is reliable and secure. Various types of wallets are available for holding cryptocurrencies, so be sure to do your research before selecting one. Some of the most common wallets include online wallets, hardware wallets, desktop wallets, mobile wallets, and cold storage wallets. While there are many wallets available, selecting a wallet that is both secure and reliable is essential. If you don’t select a reliable and secure wallet, your funds may get stolen or lost. When choosing a crypto wallet, you need to ensure it is compatible with the coins you plan to invest in. This will make it easier to store and switch between your various assets. Your crypto wallet should have a good reputation, be portable, easy to use and have exceptional security.

Know the common crypto scams and what to look out for

As in any industry, there are many scammers waiting to take advantage of unsuspecting investors. Luckily, you can do a few things to protect yourself. 

First, you should always ensure that the team behind the project is legitimate and has a verifiable identity. You should also carefully review the roadmap and ensure that the project has a clear purpose and legitimate use case. Finally, you should only invest in projects with a genuine use case and a real team behind them.

Here are some of the most common cryptocurrency scams and what you can do to avoid them:

  • Fake or misleading news – Scammers can often publish fake or misleading information about a particular coin or project in an attempt to trick investors. Make sure to do your own research and avoid falling victim to fake news.
  • Fake or misleading ICOs – Promising ICOs can be an excellent way to capitalize on cryptocurrency. However, scammers are known to take advantage of unsuspecting investors and launch fake ICOs. It’s essential to conduct thorough research before investing in an ICO.
  • Scams disguised as ICOs – In some cases, scammers have disguised ICOs as existing projects in an attempt to trick investors. This can make the process even more challenging to identify and avoid.

Use a secure device.

While it’s important to protect your wallet and funds, securing your device is also essential. To protect your funds, enabling two-factor authentication (2FA) on both your exchange and wallet is a good idea. Doing this will significantly reduce the risk of someone gaining access to your funds by hacking your account. It’s also essential to use secure software, update your software regularly, and have a reliable firewall. You should also periodically back up your data in case anything does happen. Avoid public wifi networks, and only use reputable and secure networks when accessing accounts. It’s also essential to use a secure browser when accessing online accounts. Avoid using public computers to access accounts and wallets. This is particularly important if you’re storing large amounts of crypto. Public computers are more susceptible to hacking and viruses, which can cause significant damage to your investments.

Only invest what you can afford.

When choosing to invest, always go by how much you can afford. As of the time of publishing, the current value of one bitcoin is over $22,000. It goes without saying that it is a hefty sum to have to invest in a non tangible product, let alone a digital currency. You can invest small sums in one or in different currencies to enable you to diversify your crypto investments. However, be aware the market can be highly volatile, and as a rule, crypto is for the long term, not to make gains for quick and easy transactions. If anyone promises you to return, that seems too good to be true, the chances are they are, and you should be wary about investing with them or investing more than you can afford.

Conclusion

Cryptocurrency investing is an exciting and potentially lucrative industry, but it’s essential to stay informed and follow some simple guidelines to maximize your profit and minimize your risk. If you follow these tips, you can make a smart investment and avoid any scams.

*  Contributed Content – 6 Tips to Ensure Safer Cryptocurrency Investing For Beginners

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