The Right Crypto Moves for Newbies This Year

Last year was exciting for the crypto industry. Many got rich off cryptocurrencies, while others learned more about the asset class and are now joining the industry.

The Right Crypto Moves for Newbies This Year

If you're a crypto newbie, you may still be a tad confused. In 2022, you'll need to be vigilant. These crypto investing tips can help guide you down the right path.

What type of investor are you?

Before you get into crypto, understand the type of investor you are. Do you want to make stable investments that will deliver proper returns in the long term or are you looking to make money quickly?

The crypto market has accommodations for both types of investors, though the latter will pose more risk.

Quick gains happen in the crypto market all the time. Look at Dogecoin and Shiba Inu at the start of 2021. But, these investments need attention. With the risk involved, you have to stay on top of things.

Research, research, research

Perhaps the most important advice for newbie crypto folks is research. If you're looking to invest in a coin or crypto project, research as much as possible.

Some of the top coins - like Bitcoin, Ether, Binance Coin - have potential and use cases. These coins are the safe havens when everything else fails. They're tied to tested and trusted projects - guaranteed to give gains even in the short term.

But there's a massive selection of other coins out there. A lot of new projects will launch coins in 2022.

Altcoins tend to deliver higher returns because of the initial hype surrounding them, offering more opportunities to make money. But, which of these coins is legit? Which coins are duds? You know the answer: research.

Generally, pick coins that are generating massive buzz and have specific use cases. Read the developer's website. Learn their objectives for the coin. Discover projects tied to the coin. If you think it makes sense, feel free to invest.

You also need to do your research when dealing with more established coins. If you're a trader, check for trends, spot the market's directions, and keep your ears to the ground for the latest news. When it comes to crypto, the research never stops.

Resist FOMO if you're in for long-term gains

If you're a long-term investor, resist the urge to fall trapped in Fear of Missing Out (FOMO). It often happens when a coin becomes so hot on social media that everyone starts buying and its price skyrockets.

Consider Dogecoin in 2021. In April, the coin got hot and climbed as high as $0.74. Elon Musk and other celebs started tweeting about it, and the community ate it up. But, it all came crashing down. To date, DOGE is on a slow simmer at $0.14.

Unfortunately, investors with FOMO were ready to ride the Dogecoin wave even higher and lost out. No matter the hype, no matter the trend, be smart - nothing lasts forever.

To be clear, FOMO isn't always bad. People get into crypto because of FOMO. But lean toward a Fear of Missing Out on the high price. Sell when you've done well for yourself. With crypto, listen to your research and don't hang on too long.

Work with the right people

You also want to be careful with the platforms you use. From crypto exchanges to staking platforms and trading systems, there are different options to choose from.

Security will be an important issue for the market this year. Several cases of hacks plagued 2021. So pay attention to security, how carefully the platform prioritizes it, before making a selection.


0 Comments • Tap In (Sign in) to comment

  • No comments yet