Cryptocurrencies are an exciting and attractive market for investors, because they promise to achieve wealth in a short period of time, but in return, they are full of risks and volatility.
And the American “ ” website says inspiration feed in a report that anyone who is excited about embarking on the journey of investing in cryptocurrencies, should see a set of simple rules that must be adhered to, in order to avoid losses and shocks, and increase opportunities profit. Read also Before you go into investing in digital currencies, all you need to know about them How widespread are digital currencies around the world? Investment of some Egyptians in digital currencies.. Migration for the future or uncultivated gambling? How did Bitcoin become the pioneer of digital currencies?
The site adds that these rules and recommendations are not only related to securing investments and ensuring profit, but also investment strategies and risk management.
Consider the security aspects
Although the main advantage of cryptocurrencies is that they are designed to be secure and secured, there are additional steps that can be taken to be extra careful.
Cryptocurrency transfers rely on “blockchain” technology, which relies on digital encryption to protect personal data, and for more security, an investment portfolio must be chosen that contains enhanced protection features.
And wallets that are managed without an Internet connection are often considered the best option, since it is very difficult to hack and manipulate them, since the data is located on a hard disk or (USB), and is not stored by relying on cloud storage technology.
Think about your investment strategy
The first rule that must be adhered to when investing in cryptocurrencies is to only risk what you are prepared to lose, as this field is full of risks and market fluctuations, and for this very reason the profits are astronomical compared to traditional investments.
One of the strategies that are popular in the cryptocurrency market is to buy a specific currency and keep it for life regardless of price fluctuations, which has made many people make profits despite market fluctuations.
Beware of selling under pain of fear
This point is related to the second tip, as anyone familiar with the cryptocurrency market knows that prices rise and fall dramatically, which allows for huge profits, and it is very important that investors remain calm and stay away from selling in panic periods when prices start to decline.
This is because most cryptocurrency prices tend to adjust themselves after days, so rushing to forfeit them with the first jolt will cost you a lot of money, from your original investment and potential profits.
In general, investing in the cryptocurrency field is supposed to be long-term and is accepted only by those with long experience and soul.
Diversification is the biggest gain
Although Bitcoin is the most popular and popular cryptocurrency in this field, this does not mean that it is the only option for investors, and there is an important tip that beginners should know, which is the importance of diversifying investments.
It is a good idea to buy bitcoin, but it is very expensive at the moment, and there are many alternative currencies that have the ability to develop equal to or superior to bitcoin, such as ether, ripple and litecoin, and these are excellent options for beginners looking for inexpensive and growth currencies in the market.
Beware of scams
Unfortunately, this bull market is full of scammers, so you should watch out for scams and traps that are set up by tempting huge returns that may seem illogical, and also you should be careful not to give away your personal keys and addresses to other people, since this is the easiest way So that hackers can hack your account and steal your balance.
There are other types of scams that you should watch out for, such as phishing attacks with messages that carry tempting links, so you should beware of strange links that when you open them ask you to re-enter sensitive information such as passwords.
When you fall into this trap, you have simply given your confidential data to a gang of criminals.
Finally, some investors talked about another trick, which is to receive calls from government institutions concerned with taxes and income, telling you that you have made profits from your digital investments, and asking you to give them your private data so that they can transfer your profits to you.
In any case, you should never disclose your financial information and passwords over the phone, and remember that government agencies and institutions do not answer the phone or use it for these purposes.
Never stop searching and reading
You should always continue to learn more about this area, considering that the cryptocurrency market is bullish and is in the process of formation, and it changes every day. Therefore, you should stay informed of the latest events and laws regulating this trade, along with market trends and the impact of all this on your investments.
And try not to rely in your decisions on hype, rumors and superficial impressions, but you must always research and think well to make right decisions, and this is very important given the presence of many fake and even comic cryptocurrencies that have begun to surface.
And remember that if the currency does not have an actual use in real life, its value, no matter how high, will collapse in the end, and whoever invests in it will lose his money.