If you want to start putting your (Fiat) money into crypto and enter the world of trading, you should know at least some basic tips to be successful, especially if you are a beginner, that will make your investments more valuable and productive.
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Learn about the two types of wallets
Even though cryptocurrencies are digital, you should be aware that your privacy is the most important thing you should protect, which is accomplished by understanding the hot and cold wallets. Hot wallets are wallets that you can save your money in online, such as Coinbase, Binance(Trading platform and wallet), Kraken, and others; they are secure and reliable, but if you have a large amount of cryptocurrency and want to keep it away from hackers as much as you can, you should use a cold wallet. Cold wallets are offline wallets that can be saved on hardware crypto devices that are always in your room and can be opened with your fingerprint or a passcode.
Prepare to fail
Cryptocurrencies differ from traditional (Fiat) currencies in that they are not stable. As we all know, Bitcoin, the most popular cryptocurrency, has an unstable price. A few months ago, it hit $60000, and in the last month, it fell below $30000, so you must make wise decisions and avoid becoming greedy, as this will result in a large loss.
Understand Altcoins
One of the most important things to remember in the world of cryptocurrency trading is to not put all of your eggs in one basket, which means you should not put all of your money into Bitcoin. Instead, I highly recommend learning about Altcoins, especially for small investors, because Altcoins provide a double return on investment due to their low value in comparison to Bitcoin.
Be careful!
Because the crypto world is similar to the real world, there may be scammers and hackers, so be cautious and don't believe anyone who claims to be able to double your money in 24 hours or to do investment for you. Learn to do it on your own!
Crypto trading is not difficult, but as with other skills and subjects, you must first invest your time and effort before investing your money.
Find the most well-known cryptocurrency news sites
People are divided into two groups. The first feels that cryptocurrency trading is profitable, while the second believes that it is a lose-lose situation. Both groups are inaccurate; many people have become millionaires as a result of their crypto investments, while others have lost all of their money.
If you're serious about investing, stay tuned to reputable news sources and don't listen to skeptics, because successful investors need to know the facts and make informed decisions.
Conclusion
I hope you enjoyed this post and gained an understanding of the fundamentals that will enable you to begin investing in 2021. Also, remember that it is better to be late than never.