Things to Know Before Buying Your First Crypto: A Guide to Getting Started in the Market

Published 15 Jul 2021 by Radhika Aggarwal

Table of Content

  1. 8 Things to Know Before Buying Your First Crypto
  2. Conclusion

Cryptocurrencies are everywhere these days, and this is why new investors are asking themselves how they can get started. The question many people have been asking themselves lately is, “How do I get started?” This article aims to answer that question by giving you ten tips for getting your first cryptocurrency, as well as who might not want to invest in cryptocurrencies at all.

Bitcoin is the future currency of all countries, and it will soon become a part of everyday life. People who invest in bitcoin can expect to reap the rewards from their investment in many ways: purchasing items that they want or need, buying stocks on major markets like Wall Street, investing with an attractive return rate than savings accounts, etc.

8 Things to Know Before Buying Your First Crypto

Everyone needs to pay close attention to the primary aspect of any cryptocurrency. Knowing all the significant things that relate can help them make every decision right and then get positive results after buying or using BTC. Here are eight main points worth considering:

  • It’s not easy to turn your crypto into fiat, and more often than not, it is unclear how much you should withdraw or the process of doing so. This means that it’s important to know about both buying cryptocurrency and selling/exchanging cryptocurrencies for fiat currency like dollars when possible.
  • One of the toughest things about buying bitcoin is finding a reputable and reliable exchange. There are many platforms to choose from, but you need to research which one will work for your needs or ask an expert what they recommend.
  • Investing in cryptocurrency can be lucrative, but it’s important to do thorough research on the currency you are considering.
  • A great first step is examining the project behind an investment. Typically, price history and its potential for future growth can be determined by just looking at it. Developer activity also matters - does someone have ulterior motives? Get in touch with your gut before you make any decisions about which cryptocurrency to invest in!
  • Don’t be fooled by FOMO (Fear of Missing Out), and don’t sell because of FUD (Fear Uncertainty Doubt). You should always check the factors before you buy or sell anything with a growing market comes an increasing investor base - this could mean that what appears to be on its way up might not actually go anywhere but instead die down again for no reason at all, so it’s important to do your research!
  • Investing in the crypto economy is a potentially rewarding but risky endeavor. Therefore, you should always be cautious and prepared to manage the risks you have allotted yourself for maximum benefit or if things don’t go as planned, then for your peace of mind knowing that you haven’t lost everything.
  • You may store and trade some of your cryptocurrency funds on an exchange but never keep more than 30% of it there. Before trading, you need to choose a trustworthy exchange and make sure it secures private keys. Trading can be fine for some people, but ideally, only don’t invest more than 30% per day in trades.
  • The most famous phrase #NotYourCoinsNotYourCrypto sums up everything in a hashtag. We at cxihub are preparing to update our wallet infrastructure this year. Users will be able to export the private keys and have custody of the funds. We plan to start with rolling out the update on Bitcoin & Ethereum and gradually move to other lists of coins at cxihub. Bitcoin was built to transact online or offline without the need for trust in a third party. Our industry has pretty much deviated from this, Cxihub has and never will!

Conclusion

It’s no secret that cryptocurrencies are everywhere these days. However, with new investors asking themselves how they can get started, it’s important to know what you’re getting into before committing. The following article will give a few tips for your first cryptocurrency and those who might not want to invest in them at all. If this sounds like something you may be interested in, head over and check out our blog post! In the meantime, subscribe for blogs and signup to trade these currencies on cxihub.

Disclaimer*:- Trading in cryptocurrencies is subject to market and legal risks. Cxihub does not guarantee any returns. Use cxihub’s service at your own risk.

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