3 Important Tips for those starting in the Crypto Space

Steven Zenios18/12/20196min
Cryptocurrencies have been the center of attraction for the last 5 years but more so in the past 2 years.

Specifically, BTC’s rally from February to June 2019, the cryptocurrency saw positive growth of 300%, that’s $3,250 all the way to $13,800 in just 5 months. This played a vital role in the growing interest of investors and newcomers to the crypto space.

Sources say that most millennials and younger investors have decided to invest in crypto in the future due to their scepticism and slight disappointment in traditional financial services ever since the financial crisis of 2008.

For those who are planning to invest now and for those who have recently begun their journey in the crypto world, there are still a few factors that need to be considered before buying any cryptocurrencies. Consider these 3 at first.

Understand Market Cap

Market Cap or Market Capitalization in simple terms is the size of the company and you calculate the metrics by considering the asset’s price and then you multiply the shares that are available.

What is also vital to remember is that market caps give insight into the risk level that a particular investment represents. You will notice that coins with higher market cap and larger circulating supply are in theory less volatile than ones with smaller market caps.

On a side note:

You will notice there are hundreds of cryptocurrencies listed on reputable sites like coinmarketcap.com, but the fact of the matter is there are thousands of tokens listed on various exchanges. Most crypto news sites or blog pages will only give you details on the top 10 cryptocurrencies by market cap as these are the most familiar ones to both new and older investors.

Observe the Trading Volumes

Before making any kind of crypto investment, it’s wise to check the tokens trading volume. What is noticeable is that the top 10 to 20 coins that are listed on crypto exchanges have a larger trading volume. Either way, it’s vital to investigate how many tokens are being traded on a daily basis also.

The higher the trading volume, the easier the buy and sell order will be. On the contrary, the lower the trading volume means minimum liquidity and the harder it would be for the digital asset to be sold on an exchange.

If you notice there is little or no trading volume, that could be a sign of an inactive or dead coin. In this case, usually, the largest crypto exchanges will opt for these coins to be delisted.

On a side note:

When buying or selling cryptocurrencies, you must consider having a plan for every trade. Whether you’re a young investor or mature investor, you must develop a good strategy and always have a backup plan to decrease your losses when investing. Starting with 1 or 2 high trading volume digital assets is important if you’re an amateur, then when your knowledge and confidence increases you can move to more crypto investments simultaneously.

Store your Investment safely

When you have decided which cryptocurrency or currencies to invest in you will need to decide how to securely store those investments.

Some may choose to store their cryptocurrencies on exchanges, which isn’t a problem, but there are risks when using this method.

It’s recommended that you store on crypto exchanges the investments that you’re willing to lose. It’s best to use hardware wallets to store and protect your private keys to invested digital assets. Also, ensure its offline and only accessible by you the owner.

Keeping in mind the risks involved in investing in cryptocurrencies, being a responsible trader by doing your due diligence and having a strategic plan before taking action, will prove to be beneficial either in the short term or long run.



Disclaimer: HighWorthCitizen.com is not intended to provide legal, tax or investment advice, and nothing on HighWorthCitizen.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by HighWorthCitizen.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.


Image Source by Blockchain Expo

Steven Zenios

Steven Zenios is a young author and designer with strong passion. A specialist in web design and development, blogger, author and Blockchain entrepreneur. He is the CEO of Web Theoria, a digital agency based in Cyprus. In the last 10 years, he has vastly improved his knowledge and skills to produce great pieces of work, both in the web design industry and article/blog industry. Contact Steven at +357-22029786 ext: 6120 or by email at [email protected] for editorial related questions.

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