It’s no longer news that cryptocurrency and digital assets as a whole have become major talking points of the finance sector.
As a result, there has been an influx of people trading and investing in crypto as well as carrying out major transactions using digital assets.
Conversely, many have also gone in blindly and made bad business decisions due to the lack of adequate knowledge on how to navigate the sector. The following are some ways you can safely acquire digital assets:
Use a Verified Exchange Platform
Investing in cryptocurrency is similar to exchanging currencies. To begin your investment, you must first purchase cryptocurrency. However, only use trusted platforms like Binance, Coinbase, and FTX.
PayPal, Venmo, and Cash App will allow you to purchase and sell cryptocurrencies, but only to a limited extent.
Also read, 3 Questiona About Digital Assets
Have an Emergency Fund
Cryptocurrencies are inherently risky. Prices fluctuate considerably. Before investing in assets, investors should establish an emergency fund to meet unexpected costs.
It is critical to have emergency funds before purchasing any cryptocurrency.
You can be compelled to sell all of your assets with a negative margin if you don’t have an emergency fund.
“And for individuals who are all-in on the technology,” Marcos Cabello says, “investment specialists urge that investors keep their exposure limited.”
Choose a cryptocurrency that is right for you
In the bitcoin market, there are numerous alternatives. However, you must comprehend how cryptocurrencies interact with your other investments.
Diversification is a smart concept, but putting all of your money into hazardous (very volatile) investments is not.
It can be worthwhile to invest part of your funds in safer bets.
Examine your crypto investments
Develop a cryptocurrency investment plan focused on fundamentals rather than social media debates or celebrity endorsements.
Make a long-term investment rather than hoping to “become rich” soon.
Educate yourself to avoid scams
Last year, the blockchain data firm Chainalysis discovered $14 billion in stolen cryptocurrency.
Fake websites differ slightly from legitimate websites and attempt to imitate them.
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