The cryptocurrency market is considered a somewhat emerging market. This market, which started with the launch of Bitcoin, has not yet completed 20 years. Therefore, it is natural for your entry into this market to be surrounded by many inquiries and questions.
In this article, I will try to give you 5 things you need to learn and understand well before investing in cryptocurrencies.
Always have an exit plan.
One of the most common mistakes in this market is to enter your investment without having a good exit plan.
In this market, your investment is solely for profit. This is not real estate you can live in; rather, it is an investment like any other investment aimed at profit.
Therefore, you need to determine whether your plan for this investment is short-term or long-term profit. If it's long-term, you should choose currencies with a future and sustainability in the market. If your strategy is short-term investment, it’s fine to choose currencies that are trending at the moment, such as meme coins and others.
Additionally, you should set an exit price from the investment, meaning a price to exit with profit and a stop-loss price.
Even if you do not set this price in your calculations, it should be in your mind, so it becomes easier for you to make an exit decision at any moment you see fit.
Do your own research.
Since the cryptocurrency market is an emerging market, it means that this market still lacks many reliable information sources.
Especially since this market is unregulated or unlicensed in some countries, the responsibility to research and verify the truth about the projects you will enter lies entirely on you.
Therefore, start studying the projects you wish to enter, and do not rely on the advice of an influencer or a social media account as if it were true; rather, do your own research behind every piece of information if you can.
Make an effort to find a trading platform suitable for your specialties.
The trading platform you will use is one of the most important decisions you will make in this market.
Since you will be investing through it, you should study what tools you need, such as buy and sell limits, user experience, terms of use, and trading fees, very well.
Knowing this information is crucial; it can save you from many problems and potentially save you tens, if not hundreds of thousands, of dollars.
Do not be deceived by fictitious profits.
If you see exaggerated profits, do not be fooled.
Take it as a rule: If it seems too good to be true, it probably is.
This does not mean that the market does not contain fantastic profits; on the contrary, there are profits, but a small percentage of them are real, while the rest are either unrealistic rosy pictures or scams to steal your money.
You are the number one responsible for the security of your assets.
The cryptocurrency market relies on decentralization and encryption, so the security of your assets and data is your primary responsibility.
Unlike banks, there is no institution or entity that pursues those who scam you in blockchain, as all data is encrypted and anonymous.
Therefore, your primary responsibility is always to keep your accounts and digital wallets safe from hacking and theft by securing them with 2FA technology and other recognized security methods.
