Financial freedom is a real perk of the cryptocurrency ecosystem. Furthermore, if you decide to invest in crypto, you may use the Quantum Code crypto trading platform as it has all the advantages a trader needs. Moreover, you will get live customer support. At first, people had a simple desire to make money with cryptocurrencies, but later it started to collapse fiat currencies by enabling transactions internationally for nearly free.
The future of the cryptocurrency ecosystem is flooded with new opportunities for financial freedom. But experts have pointed out the aggressive and volatile nature of the cryptocurrency ecosystem, making it vulnerable for newbies so here are seven things to consider before investing in crypto.
Use an exchange that does not have DDoS attacks
The current state of cryptocurrency trading platforms leaves no room for criticism. Only some exchanges provide user-friendly experiences commonly known as “buying and selling.” Still, these exchanges have been hacked, sometimes leaving users to lose their funds or even their personal information (hack in 2018), thus the fact that it’s essential to choose an exchange with a high-security margin.
The reason why most exchanges are hacked is because of their lax security measures. Some exchanges even don’t have 2-factor authentication. It’s essential to keep your cryptocurrency in a secure wallet that cannot be accessed by anyone other than yourself. Since the market is still new, it doesn’t have many regulation laws yet. You should be extra cautious and avoid keeping your cryptocurrency on an exchange.
A diversified portfolio is a key to long-term success
Cryptocurrencies are known for their extreme volatility. In a short time, they can take you from riches to rags. Nobody can guarantee your profit when investing in cryptocurrencies because of the strong influence of supply-demand fluctuations, FUD hackers, and many other factors. That’s why it’s essential to invest in a diversified portfolio; a balanced investment between Bitcoin, Lite coin, and other altcoins will create a safe environment for your investment.
Questions like: Should I buy bitcoin? Or Should I buy Ethereum? Or should I buy XRP? And so forth are pretty standard among crypto beginners. However, if you have no idea about any of these questions, then don’t rush into investing your money into any cryptocurrency blindly without researching it first.
Compare the roadmap with developer activity
The technology behind blockchain has got excellent future potential. If you are unsure about it, ask developers and other people researching blockchain technology. There were 1277 active ICOs, 2062 tagged-ended ICOs, & 186 closed down ICOs in 2017, with a total of $3 billion funding only to the Ethereum foundation. It is an indication of how much value was contributed by these coins development team and user community during this year.
Overall, investing in the cryptocurrency market is highly risky and speculative. Therefore, you should spend some time researching the coins and their development teams before investing. Investing in a coin is a way of supporting the developers and their community, but at the same time, it’s a double-edged knife. Binance is among the best exchanges for trading in cryptocurrency assets after Coinbase and Bittrex.
Do your research before buying into ICOs
Cryptocurrencies are the future and can be an excellent investment. But it would help if you did enough homework before investing in an ICO project. If possible, seek opinions from people who have been around cryptocurrencies for a long like experts and experienced investors. Also, you should have the proper technical knowledge to analyze & evaluate the technology behind the coin’s code.
Work for it! Don’t rely on FOMO Moment
The first people who jump into cryptocurrency without even thinking about how it works and how it’s worth investing in are usually those who make mistakes and lose their money. The others who are smart enough to invest in the cryptocurrency have a considerable advantage as they already know how it works and has a better understanding of the cryptocurrency ecosystem’s long-term potential.
Remember that Bitcoin is not the end all be all of the cryptocurrencies
Bitcoin is one of the most critical and successful blockchain-based cryptocurrencies. But it’s not the best and is accepted by only a few online stores. The future of cryptocurrencies will be based on different coins with different blockchain technologies.
It would help if you made a temporary portfolio of equal proportions from different altcoins to practice trading them and at least test it with small amounts first. Currently, Ethereum is very promising as a decentralized platform for smart contracts, dapps, and ICOs (Initial Coin Offering).