10 Things you should know before you buy the First Crypto

When it comes to cryptocurrency trading, one of the most challenging aspects for users to stop is being caught up in the hype. Digital currencies have quickly risen to prominence in the portfolios of both retail and institutional investors. On the other hand, cryptocurrency experts have continued to alert investors about the stock's uncertainty and unpredictability.

If you want to invest in the cryptocurrency market, you should do your homework first, just as you would for any other investment.

Do you want to learn all you can about blockchain and cryptocurrency trading? To get started, you should definitely look into some cryptocurrency certification.

Here are the top 10 things that you need to keep in mind before you get into Cryptocurrency trading.

• Don't risk more than you can expect to lose by investing. Cryptocurrency is a riskier investment than a lot of other stuff. Nothing is certain but uncertainty. Furthermore, it is unregulated in the vast majority of situations. The value of cryptocurrencies varies significantly from minute to minute.
  

• Do your homework Before investing a significant amount of money in any digital currency, spend hours upon hours researching the technology so you understand the value proposition and the risks.
  

• Don’t do it because everyone’s doing it If your only way of spending is to keep missing out on something, the only thing you won't be missing out on is making a sacrifice. Fear of missing out (FOMO) is a surefire way to squander any savings you've accumulated over time.

• If something seems to be too good to be real, it most likely is. It's almost impossible not to come across someone attempting to rob you no matter where you go or what you do. What are you going to do to shield yourself from this? Investigate.
  

• Don’t trust, personally verify. Trust your instincts!! Yes, really! There's no foolproof way to spot scammers, but if anything sounds too good to be true, it probably is. Don't invest.
  

• Be cautious about 'unit bias.' A coin's value of $1 does not imply that it is "cheaper" than bitcoin, which is worth $58,000. Some coins are superior to others. Thousands of cryptocurrencies exist, some attempting to duplicate bitcoin and others attempting to solve different problems. They all vary in terms of developer support and decentralisation.

• If you lose the keys, you lose the coins. Cryptocurrency, like cash and jewellery, is a bearer asset, meaning the buyer is assumed to be the rightful owner. When it's been stolen or lost, it's gone forever. Experiential users advise against entrusting the cryptographic keys to a digital currency wallet to a third party, such as an exchange, since these businesses are often unregulated and susceptible to hacking or exit scams.

• It is possible to buy a small number of cryptos. You are not required to purchase the entire coin. So, if you're interested in learning more about how this stuff works, you can get it for as little as $1 and try it out.

• Recognize the tax consequences You must register and pay tax on the capital gains if you purchase a coin for $1 and it doubles in value, and you spend the extra dollar on something. There is no exception, despite the crypto industry's lobbying efforts.

• Don't be concerned with price. Markets fluctuate from day to day, hour to hour, minute to minute, but every cryptocurrency or investment worth its salt is a long-term bet.

Wrapping up

So there you have it!! Before you spend, make sure you've done your homework. Learn Blockchain to get a better understanding of how it works.