Without an iota of doubt, ignorance remains one of the greatest elements preventing people from getting the best out of Cryptocurrencies. Oftentimes, newbies come into the cryptocurrencies market, buy the top, sell the bottom, rinse and repeat until they lose it all. However, this can all be avoided with accurate knowledge of how cryptocurrencies work, the opportunities it presents, and how to manage it.
Out of sheer Ignorance, many refer to cryptocurrencies as scams and suffer unbearable loss with it. But think of it this way, electricity is created to serve a good purpose of providing electric energy however, when handled wrongly, it could lead to electric shock and invariably death. The same can be said of a car, although it's meant to transport people from one place to another faster, safely, and comfortably when handled wrongly could lead to an accident and invariably death. Similarly, cryptocurrencies are created to bring about the freedom of money and make life better but when handled wrongly, it could lead to unimaginable losses.
With that said, you must have the right understanding of Crypto and know how to handle it rightly to get the best out of it. Here are THE MOST IMPORTANT THINGS TO KNOW ABOUT CRYPTOCURRENCIES.
1. Learn the skills
As with most things In life, you need to learn the skills first before expecting to earn from it. Nothing beats skills as far as success in the space is concerned.
To further explain this, let's consider an example of a sportsman. The highest-paid footballer is being paid in millions of dollars simply because he has the skills that made him worth the pay. The same applies to other professions or areas in life. It's impossible to get value out of anything without gaining the right skills.
When it comes to cryptocurrencies, learning the skills is one of the most important things you must do. You must learn the skills to manage crypto effectively. Don't just buy into a coin blindly solely because you see it's falling, you may buy into it and it falls even further. Don't buy at the top, and sell at the bottom. Avoid getting rekt. Avoid losing money to wrong investments. All these can only be avoided when you have the right information in the form of skills.
I can't stress this enough but note that skills are perhaps the most important thing when it comes to cryptocurrencies.
That said, it's also pertinent to note that you don't have to be a math guru and Technical Analysis Specialist to get involved in the space. At least understanding what cryptocurrencies are, what market circle we are in, what the long term and short term trend look like, when to buy, when to sell, what coins to invest and not to invest, crypto security and some other basic stuff, is just enough to get going.
2. Apply proper risk management
Next to having crypto skills is to apply proper risk management to all your investment. Risk management is a vital aspect of life that should never be neglected. With proper risk management, you should never really get rekt if markets don't go according to your expectations.
Life is full of risk, and it takes only proper risk management to succeed. By risk management, you should never invest more than you are willing to lose. The idea of never investing more than you can afford to lose goes down to everything else in life even in your relationships. It was once taught in a relationship seminar that, you should invest in your spouse to get the best out of him/her, however, never invest more than you are willing to lose because even as human, people could become unpredictable, therefore the only way to avoid detrimental effect if things don't go as expected is to NEVER INVEST MORE THAN YOU ARE CAN AFFORD TO LOSE.
Similarly, in cryptocurrencies, after getting some skills to get started, your next step should be to apply proper risk management. Don't put all of the money you have into one coin. Diversify your portfolio. Hold some coins for the long term and others for regular short term trades to grow your portfolio and overall balance.
When trading long term, learn to take profits, when the trading short term, use only 1 - 5% of your trading capital per trade. Don't put it all. The market is not a get rich quick scheme. Consistency is the name of the game.
3. Always Do You Own Research
There is no crystal ball to predict what the future looks like with crypto. All it takes to succeed is diligence in terms of research for better decision making. Don't follow self-acclaimed gurus who claim to know it all. When you get closer, you will realize they make more losses than profits. Others are just paid to promote various projects which they won't invest in themselves but would recommend for their followers.
Just as you can't be successful in school by depending on what other classmates know, you can't succeed in this space by following others blindly. Always do your research.
With everything said this far, if you still want to invest in cryptocurrencies, your first step would be to SignUp on Binance to purchase some Crypto then join a community of crypto traders to learn more about the space.