For new and potential investors, the thought of taking a financial gamble on anything can be intimidating. Living on a limited budget, having no real knowledge and no real system to guide you can be downright terrifying. I know this because that's how it was for me the first time I invested in Bitcoin.
There are several fundamental rules you must understand before taking the plunge.
First and foremost, become familiar with the technology. Now, if you're like me and not very technologically savvy, here's a site that helped me out:
And here's where you can find most of the commonly used terms when reading about cryptocurrency and what they mean:
A common expression in the cryptocurrency world is "do your own research", often shortened into "DYOR". But when you first enter the crypto world, you might not even know just where to start. Luckily, there are many sites out there to help you on your crypto journey, like Steemit, BitCoinTalk, and Reddit. Another useful site is CoinMarketCap, where you can find information about every cryptocurrency on the market, including market cap, trading volume, circulating and maximum supply, and in most cases links to their official websites and social media, as well as markets where they are traded. In addition to the great resources mentioned above, there is something special in the works for beginners and seasoned investors alike called Clout. As it says on their site, Clout is taking on the responsibility of reaching newcomers by offering some of the most sought after information on getting started. However, it is always important to remember not to blindly believe what other people are saying - at the end of the day, the best and most trustworthy method of researching different coins is to read the whitepapers yourself and make your own decisions based on how useful they seem.
Another general rule of thumb is, don't ever put your money on something unless you have some basic knowledge as to what it is, who is behind it, and how it benefits the community it targets. There are well over 500 cryptocurrencies and assets available to invest in, and Coinmarketcap should give you all of the information and links you may need to adequately research the crypto of your choice.
Finally, never invest more than you are willing to lose, so don't put your rent or mortgage payment at risk no matter how profitable a crypto coin may seem. Yes, it's true; no risk, no reward, but you also have to be responsible and keep a level head in this game. There are two phrases popularly used by investors: F.O.M.O, the fear of missing out, is a very real condition that affects all investors from beginners to the well seasoned, and F.U.D, which more so applies to the fear, uncertainty and doubt that comes from negative news and seeing your investment in the red.
If you want to start learning about the basics surrounding the analytical aspects of trading, check out BabyPips.
It's not easy and it'll take time, but anything worth doing is worth doing right. Right?
