Namaste to all Hive and Leo Finance community members🙏
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1.first and foremost. Cryptocurrency's are unregulated and decentralized: Based on digital network cryptocurrencies are digitized asset that is governed by rules enforced technologically and without relying on Any Central Authority such as a government or banks. Although these are some of the most attractive features of the crypto market, yet also could be some of the most dangerous one.
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2.Secure your private keys: A private key is an alphanumeric code that allows user to access and control their digital assets. Just like your Hive private keys and password that grants you ownership and control of funds associated with your account. That's why It's important to secure them because if a user loses their private key, they'll lose access to their funds forever. Therefore, it's crucial to keep private keys safe and secure by storing them offline in a cold wallet.
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3.Volatility like you've never seen before: If you are a risk averse trader then be careful as the volatility in the crypto market will throw you off your trades before you even know it. With large swings in value over short periods of time without a proper trading strategy and risk management can risk your entire investment in a matter of seconds. That's why I suggest that you should observe the volatility of this market patiently for a few days before making any kind of investment.
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4.Beware of ICO’s: Initial coin offerings (ICOS) are like launch of new coins which are quite popular these days. ICOs became one of the primary hunting grounds for naive investors. hence, investors must go through the whitepapers of cryptocurrency’s on their respective websites before plunging into it, If the white paper does not contain data and specific details about the project, that is generally seen as a negative.
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Last but not least.
5.Choose the Right Crypto to Invest: Understand the basic conduct of buying and selling, the rising mainstream adoption of specific crypto, and how it’s being adopted by external users indicate the market sentiments about the digital asset. The more adoption a crypto gets, the more valuable it becomes. Also figure out how many coins are already in circulation and how many are possible to mine. This will affect the price of the cryptocurrency’s with the law of Price and Demand in the long run. One important factor that can make a difference in the value of a cryptocurrency’s is its utility. In the coin's white paper, (which you can find on their respective websites) you can see its use cases, this is an essential factor when it comes to attracting investors and users. So, if it has some high-quality use cases or has great potential for more use cases, it's worth your investment.
Thank you for reading this blog.