Why Has Blockchain Technology Conquered the World and How to Make Your Investment in Crypto?
Updated on September 13, 2021 | by Alex Smith
Innovations always tend to impress us, whatever they are: progress in science, education, or technology. The latter deserves special attention as technology is promising and forward-looking.
Suppose blockchain technology was used only for making records of crypto transactions at the very start today. In that case, we can see its implications in various spheres starting from the healthcare sector and finishing with cyber security.
Anyway, today, no person hasn’t thought about the idea of purchasing some crypto coins and making extra money. This topic is surrounded by myths, illusions, and false beliefs. Or, to be precise, false hopes.
Now, this article isn’t for someone looking for easy money or a lucky-chance type of profit. If you aren’t going to work toward your success and develop your knowledge in the context of crypto investments, you better skip this read and find a more flattering text.
So, who is this article for? You will find here some wisdom if you know that investments always include risks and are still willing to participate. If you are not afraid of the swings permanently occurring in the cryptocurrency market, you will count it useful. You will find reliable advice here if you are ready to learn and go beyond what you already know.
Sharing Some Tips on Investments: Tips for Beginners
Now, the critical factor that has gained cryptocurrency so much success is its decentralization. To simplify, you are an independent owner of digital currency and do not have to comply with the rules of any bank or financial institution. You’re the boss.
Reason number two is the increased security of crypto transactions whenever crypto coins are sent to a wallet. The innovative blockchain technology checks if the sender is the actual owner of this currency, known as identity verification and management.
Thanks to blockchain’s high technology, it is now extremely easy to access and manage your funds right from a cryptocurrency wallet. This gives every smartphone user with a stable Internet connection the chance to operate using cryptocurrency and be on the safe side.
Still, not everything is so simple in this world of digital currency. While the benefits mentioned above are true, you need to stay away from fraud services that try to hide behind loud promises and communities that claim they know everything and can accurately predict the prices for tomorrow. This is what you shouldn’t deal with.
And vice versa. To achieve slow but steady progress in the sphere of crypto trading, you can follow these tips.
Tip 1. Cooperate with Official Services Only.
Make it your rule of thumb to purchase coins and resell them only through legal websites that give minimal guarantees. In addition, check if your country’s government has legalized the use of cryptocurrency in your area; otherwise, you might be fined, and no trades will be allowed.
Just try to use platforms with a clean reputation. Coinbase, Gemini, Kraken, Binance – these names are too well known to let anyone down. Stick to one service once you choose it, and don’t let anyone else know your private key: this is the rule to protect your funds.
Official exchanges such as Coinbase suggest a variety of other features besides exchanging. You will find price calculators, charts with prices, crypto signal tools, and other perks there. High-end technology in the form of algorithms will help you find your way through the jungles of predictions and check the prices for tomorrow based on previous prices. At Bitcoin Digital, you will also find similar instruments and be able to trade right away without long verification.
Tip 2. Know Your Risk Limits.
As a newcomer to the sphere of trading, you might be willing to try your luck and risk everything. Resist this desire knowing that even a minimal deposit will be enough for getting profit if you invest it at the right time and in the right coin.
Define for yourself the comfortable sum of money to put at risk in trading. But don’t focus on risks alone: set the ‘profit goal’ – the lowest amount of spin-offs you want to get with your investment in a specific cryptocurrency.
Tip 3. Venture Your Capital in Multiple Coins.
It often seems that some people ignore the existence of Altcoins when focusing only on Bitcoin. Do not repeat this mistake in your experience, and try to see which coins can bring you big returns. Besides, pooling money in a few types of coins at once will leave you with Plan B in case one of them falls in price.
Tip 4. Expand Your Knowledge.
Again, you cannot venture into the right place if you don’t know the basics. We highly recommend that you take a course on cryptocurrency trading or just understanding digital currency. This will lay the foundation of your financial behavior and drive your decisions in the right direction.
All in all, blockchain technology is worth trying. And even if it often poses risks and they can get in the way of trying to trade cryptocurrency, efficient education and good tools can help you overcome them all.