3 Things Most Crypto Investors Don’t Do, But Should
With cryptocurrency, you are in control of your destiny, for better or for worse
For some people, cryptocurrencies were their first investment!
I don’t know about you, but as a native of the 90s, I feel like I was born too late and missed a technological revolution: that of the decentralization of the financial system and the Internet in general, Web 3.0.
I also know people who strongly regret not having invested in the 90s, given the growth of the stock market and the real estate sector.
When an asset appreciates more than 10,000 percent it is easier to say “I should have bought Tesla stock in 2008 and Amazon stock in 2001” than to invest in assets with supposedly revolutionary potential, but that some assets just lost 90 percent of their value in a financial crisis. Does this remind you of anything?
Why cryptocurrencies fascinate millennials and subsequent generations is no mystery.
For some people, cryptocurrencies were their first investment! While it is great that cryptocurrencies appeal to the general public, a minimum of conditions still need to be met before you can invest responsibly and with full knowledge of the facts.
1 — Before Investing in Crypto, Build Your Savings
Savings = Income — Consumption.
Your savings are the surplus you generate from your current income sources. This definition already provides us with an obvious first lesson:
You should never go into debt to invest in cryptocurrencies!
This is the best way to put you in financial mishaps and put you off investing.
So make sure you have a precautionary saving, enough to cover your lifestyle for a few months if you lose your 9-to-5 job or your source of income.
Depending on your level of paranoia, accumulate between 3 and 12 months of financial resources. It may seem too long, but in the event of a major unforeseen event, you will always have to eat and Bitcoin will secure your financial future.
Once you have accumulated your precautionary savings, you can move on to the next step.
2 — Learn About Financial Markets
This step is mistakenly the most stressful for a beginner.
Training you in the basic workings of the financial markets will allow you to be autonomous in your decision-making, which is perfectly aligned with the cryptocurrency credo!
Here’s what you need to know:
The definitions of Market Cap, Circulating Supply, Volume, popular indices used in the stock market such as Profit and Loss Statement (P/L), Earnings Per Share (EPS), Return On Equity (ROE) ), what makes prices fluctuate, how to read charts and so on.
Just as you wouldn’t try to make any typical Japanese dish without the recipe, don’t try to throw money at the cryptocurrency market praying for good luck.
In fact, you would be the first target of traders who have taken the time to train!
There are many free resources to learn about the financial markets. All the theoretical basics, even if you deal with the currency market.
3 — Learn About The Technology
If you are totally new to this, start by filling that gap with this series of 3 articles featuring:
The Technology
Its usefulness
How to invest
Then learn how to protect your investments (It would be stupid to do all that work for a crook to steal everything from you…).
To do this, you need to know:
Where to store your crypto-assets
How to protect your environment!
Once you feel well-armed, you can go out and look for projects that interest you.
I want to hear your opinion about cryptocurrencies on Twitter, I look forward to your feedback. I would be grateful if you could send me any crypto.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.