The most important points you should know before entering the world of cryptocurrencies

have you decided to buy Bitcoin and dont know much about cryptocurrencies?

The most important points you should know before entering the world of cryptocurrencies

Before delving into the realm of digital currencies, it is crucial to familiarize yourself with the following key points.
Or have you decided to buy Bitcoin and don't know much about digital currencies? 

Unlike other markets, the digital currency market operates around digital and cryptographic currencies that are based on blockchain technology. Digital currencies are famous and popular; But before entering such a new and advanced space, it is necessary to know the basic knowledge and important points for investing in it.

In the following, we are trying to talk about how to invest in the digital currency market, so that we can finally operate in this profitable market with sufficient knowledge and ease of mind.

Understand the nature of the project

A proper understanding of a project's purpose, performance, and future plans is an important point to acquire before purchasing its coin or token. Once you have this information, you can decide whether a project is worth investing in.

So that you can get information about all kinds of projects. You can easily read the "White paper" of the desired project.

In fact, you should come to the conclusion why a project is good and what new services it provides to its users.

Do not put all your eggs in one basket!

One of the most important investment principles is not to allocate all your money to a specific stock or asset. In the past, there was only Bitcoin in the crypto market and there was no such thing as different currencies. Over time, with the development of blockchain technology, other cryptocurrencies also entered the field and the attractiveness of this market increased.

Determining the optimal timing for market entry

The cryptocurrency market is very volatile and the price may change a lot in a short period of time. Before entering the market, you should check the status of the desired currencies. In the digital currency price chart, there are certain patterns that can be recognized by recognizing the best entry time.
There are various strategies to determine the time to enter the market, which are obtained by technical and fundamental analysis. For example, some investors use the Buy the Dip technique, which means that when the market falls, they buy coins that have fallen the most in price, hoping to make the most profit in the next uptrend.

Determine your investment strategy.

To create your own strategy, it is better to do it in four steps. First, put it on paper as a process. This will allow you to identify the strengths and weaknesses of your strategy in the future and improve it by making changes.
The second step is to believe in and commit to your own strategy. This market is full of fluctuations and unpredictable events, and if you try to change your method no matter what happens, you will get nowhere. The third step is to have a flexible strategy. This means that the efficiency of each strategy is determined in different market cycles and you should make changes in your strategy over time so that it is most compatible with different types of assets.

The last step is to evaluate the strategy. Until the strategy is evaluated, it is not known how effective it was. For this, you can compare your output with some benchmarks.

Beware of FOMO in the market

FOMO makes us make emotional decisions regardless of strategy. The reason for such decisions can be lack of strategy, lack of self-confidence or excessive self-confidence and lack of patience. For example, if you buy a digital currency like Ethereum at the peak of the price in a strongly bullish market, it is likely that you will incur a loss for a long time that you either have to exit the market with a loss or you have to wait for a long time until the market recovers. Your purchase limit is reached.

Choose a good exchange

To start the activity, try to choose a suitable exchange with a high volume of liquidity and transactions. The number of trading currency pairs, the level of security, support and user feedback are important factors that you should pay attention to when choosing an exchange.

Know the types of cryptocurrency wallets

Cryptocurrencies can be stored in their own wallets. These wallets are called "Crypto Wallets" and they have different types. These wallets can be both online and offline. The online wallet has advantages such as fast access and easy use, but due to being connected to the Internet, it is highly vulnerable to hacker attacks.

Online wallets, which are called "hot wallets", have different types such as desktop, web and mobile applications. On the opposite side of offline wallets, which are in the category of "cold wallets" (Cold Wallets), they are hardware devices and your connection to the blockchain is possible through the use of a physical device, and they offer much higher security. There are other wallets that are called paper wallets.

Cryototimes team