Every journey in the world of investments usually begins in two ways: learning on your own (and making mistakes along the way) or paying attention to those who have already gone through that process and sharing their experiences. No one is born knowing.

And when we talk about cryptocurrencies, a sector so full of innovation and constant change, it is very common for beginners to make impulsive, risky, or simply misinformed mistakes.

This article is a bit different from what we usually publish here at Square: we want to have a direct conversation with you, straightforwardly sharing lessons that can make your journey in the crypto world much stronger and more satisfying.

1. Know your investor profile and define your objectives

Before investing in any asset, it is essential to know how much risk you are willing to take. In crypto, volatility is the norm: a token can rise 30% in one day and fall 50% the next. If you enter unprepared, you will likely panic and make wrong decisions.

Ask yourself these questions:

  • Why do you want to invest in cryptocurrencies?

  • Are you looking for quick profits or building wealth for the long term?

  • How much can you afford to lose without affecting your financial stability?

For those just starting, a prudent strategy is to limit exposure to cryptocurrencies to between 2% and 5% of the total portfolio. This reduces the impact of potential losses while you learn and gain confidence.

2. Protect your keys, your wallet, and your connection

Unlike the traditional financial system, if you lose access to your crypto wallet, there is no technical support to save you. Your seed phrase is the only way to recover your funds. If someone else obtains it, they can also empty your wallet without leaving a trace.

Some basic recommendations:

  • Write down your seed phrase and store it offline in a safe place;

  • Never share it, not even with supposed support agents;

  • Enable two-factor authentication (2FA) on all your accounts;

  • Use cold wallets (offline) to store larger amounts, such as hardware wallets;

  • Avoid connecting to your wallets from public Wi-Fi networks.

Digital security is one of the pillars of the crypto world. A single oversight can result in the total loss of your assets.

3. Study before investing: DYOR is not optional

"Do Your Own Research" (DYOR) is a phrase constantly repeated in the crypto ecosystem. And for good reason. Never invest just because someone spoke highly of a token in a TikTok video or an Instagram post. Many projects seem legitimate but have no real value.

Before putting your money in, research:

  • What problem does the project aim to solve?

  • Who are its developers? Do they have a reputation and track record?

  • How is their tokenomics structured?

  • Is there real adoption or just promises?

  • Is there enough liquidity to buy or sell that token?

Many attractive projects are designed to hook beginners with catchy names and promises of profitability. And these are precisely the ones that cause the most losses.

4. Start small and use simple strategies

Investing in crypto can be exciting, but you don't need to start with large sums. An ideal strategy for beginners is Dollar-Cost Averaging (DCA): investing small amounts at regular intervals.

For example: you decide to invest 20,000 Colombian pesos or 100 reais monthly in Bitcoin, regardless of whether the price goes up or down. This reduces the risk of buying at the worst time and helps you form a consistent investment habit.

Over time, you can explore other assets like Ethereum, Solana, or DeFi platform tokens. But start with the basics, understand how exchanges work, wallets, and types of orders function.

5. Pay attention to the security of exchanges and local regulation

In countries like Brazil, Mexico, and Argentina, the regulation of the crypto market is advancing but still in development. For example, in Brazil, transactions over 35,000 reais per month must be declared. The same applies in Argentina or Colombia, where certain crypto transactions must also be reported to tax authorities.

Keep in mind:

  • Choose reliable exchanges with a history of security and good customer service;

  • Prefer platforms that comply with local regulations (like the CNV in Argentina, the SAT in Mexico, or the DIAN in Colombia);

  • Stay alert for fake apps or phishing attempts;

  • Never send money to strangers promising guaranteed returns.

Remember: the more secure a 'business' seems, the higher the chance it is a scam. There is no easy gain without risk.

In summary: what I wish I had known from the beginning

  • Knowing your profile and objectives protects you from impulsive decisions;

  • Taking care of your keys and wallets prevents you from losing everything due to a simple mistake;

  • Researching before investing protects you from projects without a future;

  • Starting small and with strategy allows you to learn without great risks;

  • Being alert to security and regulation protects you legally and technically.

Advance calmly, study, and trust your process

Investing in cryptocurrencies can be a transformative path to financial independence, but it requires preparation. Applying these five lessons can help you avoid many common mistakes and increase your chances of success.

Don't rush. Learn, start small, protect your assets, and grow with each step. The crypto universe is vast, filled with opportunities but also risks. Those who prepare navigate with more clarity and confidence.

Have you already started in the crypto world? Have you taken all these precautions?

#Seguridad #dyor #trade

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