I've been in the Bitcoin and cryptocurrency world for just about four months now and it's been a wild ride for this newbie. I first started my journey based on knowing of Bitcoin, but hearing more and more about Ethereum and the technology it could offer for the future. As someone who considers himself "tech savvy," I must admit that the Blockchain, mining, tokens, crypto, and various concepts involved in this space are still beyond me in many ways.
That said, I do feel I can share some of my own feedback or tips for newbies based on a short time in the space. Keep in mind, I'm far from an expert. There may be commenters who have a stronger gauge for the crypto world after being involved for several years. Here are seven tips I offer to newbies from a newbie with just four months in the "game" now.
Don't put money into the Bitcoin and cryptocurrencies that you can't afford to lose. As much as Bitcoin and crypto is exciting, it's also extremely volatile. Don't give yourself sleepless nights over it by investing too much. I've seen some financial advice sites or analysts recommend investing 1% of your overall networth. To some that may be too conservative, to others it may be too aggressive. That brings the next tip into play.
Determine your risk level and time horizon. I've found just by holding Bitcoin and ETH since my early entry into this, I've done best in terms of portfolio increases. Then again, it has exploded quite a bit in those 4 months. I have other cryptos aka altcoins I've invested in and I'm holding them for a longer term in anticipation that they will become even bigger in a year or two down the road. Not all of them will, but if you find solid projects with good teams, they could very well become the next successes in digital currency and the surrounding technology.
Use 2-Factor Authentication (2FA) on all markets/exchanges that you sign up for. These include Coinbase, Bittrex, Binance, Poloniex, etc. You can never be too safe with your money and this extra layer of security is vital. Put the Google authenticator app on your smartphone before you even begin your account registrations. I honestly wish more banking websites offered this 2FA.
Download Blockfolio app - It's become my favorite app on my phone, and often I check it more than Facebook, Snapchat and my text messages. Yes, checking your "Crypto-portfolio" is quite addictive and Blockfolio helps you track it very well.
Learn to master your own FUD and FOMO. These are the toughest concepts to be at peace with in the crypto world, but you'll find yourself battling them often. FUD is "Fear, Uncertainty, and Doubt" while "FOMO" is a "Fear of Missing Out." I wrestle with these often, but I also try to stay patient.
Buy on the major dips/overall bad news. I've invested in the stock market so I'm familiar with prices moving up high or taking a dive. Look for entry points based on the history of the crypto market, and then feel comfortable with your decision moving forward. If a major event happens and coins are in red, look for good sales prices on coins you really love.
If you make a decent profit on any coin, ask yourself if you want to stay in longer, or will you feel better taking out your initial investment? If you remove that initial investment, you'll be playing with house money and there's less worry you're losing your original money. You could even consider putting that initial investment into another coin for future gains, but that's all up to one's risk tolerance level.
Again, I'm far from an expert here, but I'm learning more and more about this exciting world of Bitcoin and cryptocurrency each day I stick with the journey. Here's to an exciting future for us all!
Please feel free to share your own comments, additions, and tips for newbies below..Thanks for reading!