So earlier today someone asked me on Twitter what crypto they should buy. Well, my first instinct was to say $hive, $blurt $wleo or $bat--my favourite cryptocurrencies. However, in retrospect, I wondered what value these tokens would have on the supposed investors. They know little about these projects to engender their confidence, especially in a very volatile market. It is like someone shilling $links or $OMG tokens to me. They sound quite exciting but I know little about these projects and their community, and when there is a negative price action I hit my panic button.
So what's the preferred line of action?
I would say start small and start with something familiar. Most people hear about crypto and pump their live-saving into it only to lose it all within a twinkle of an eye. It happenings quite too often. The market is volatile. Plus, there are a lot of scams and pseudo crypto projects out there ready to prey on naive investors. So it is often safe to start small
Never invest more than you're willing to lose
This might sound scary but it is the best financial advice I can give anyone--especially if you're venturing into an industry you know little or nothing about.
The other step is to start with something familiar and in the world of cryptocurrency that would be stablecoins.
'What are stablecoins you?' you may ask. Think of them as the crypto equivalent of your fiat or paper money. There are a couple out there in the market but my favourite is tethered $USDT. If you come from a country like mine with Fx problem and a devaluating currency than you might want to consider stablecoins. They are good storage for value, and if you use a recognised and well-established exchanger, you can leverage on cryptocurrency.
Speaking about crypto exchanges. I ey are well established and offer decent rates. However, these central exchanges are susceptible to hacks and they don't necessarily embody the ethos of cryptocurrency and blockchain technology
Not your wallet, not your crypto.
You will hear this a lot in the crypto community. It is often best to secure your cryptocurrency in a hard or soft wallet. I won't into the details about the types of crypto wallets but know you can get one on your mobile phone like blockchain wallet or trust wallet.
The third and most important step is joining a community. This is important for your education and yes, there are a lot of things to learn about cryptocurrency.
There tons of crypto communities out there that will help better your understanding cryptocurrency. My favourite happens to be leofinance.
Leofinance is a community of crypto enthusiasts with the primary aim of bringing crypto/financial knowledge to the public by way of social engagement. Asides learning about crypto you get the chance to earn from your social activities (blogging, commenting, curating, etc). For someone who is just getting started this is a nice way to build a portfolio with zero risks.
So these are my simple tips if you want to buy or invest in cryptocurrency. Yes, there are the obvious bug guns like bitcoin and ethereum but it is often safer knowing what you're buying and experimenting with the technology.
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