TechInAfrica – Cryptocurrency has been in the hot topic lately since more people get interested and involved in the industry. The blockchain industry allows you to invest in coins and tokens, potentially changing many industries.
For some of you who are new to the topic, it can be confusing. There are some terms that may confuse you or the technology itself does confuse you. So, in order to help you know more about the industry, here are four things you need to do:
1. Understand it very well
First thing first is to understand the topic very well. Know the idea of cryptocurrency and how it works. Educating yourself about cryptocurrency help you to understand the full image of it. For example, if you want to make an investment, you have to be sure about the industry, the ins and the outs of the industry itself.
You can find many online articles as well as videos as a guide in the industry. Moreover, you can go through the right websites and communities that share about blockchain and cryptocurrency space. You can ask questions you don’t understand about the topic and get the right answers.
2. Stay alert to crypto-scams
As a newbie, you should be extra careful of crypto scams. Even though there have been successful cryptocurrency ICOs and platforms, at least study found 80% of ICOs are scams. Only a few of them that reach exchanges.
There are several things to look out for to identify a crypto-scam, including no whitepaper, inactive social media activities, too good to be true, and inexperienced team. Another way you can try is googling the platform and insert the word “scam” to see if there’s a scam story about the platform.
3. Prepare yourself for unpredictable investment
Cryptocurrency will allow you to make an investment that’s generally different from standard investments. Cryptocurrency sometimes has unpredictable movements and investments in a day depending on what happens in the market. Let’s say your coin is traded $5 today, the next day it can change to $7 then $10 the next days.
If you plan to be involved in trading actively, you should be aware of the movement change. If it’s too much for you to handle, then this space is not for you. If you’re okay with fewer rewards, you can find other crypto platforms that offer less risk.
4. Know when to invest
In a standard investment, you will need some money, a bank account or other providers. However, cryptocurrency is a bit different and harder. Before making an investment in cryptocurrency, there some major things need doing. Firstly, you need to make a crypto exchange account which usually takes days to be approved. Secondly, you will have to send wallet address to send coins from a crypto exchange account to a secure wallet. And finally, you will have to invest in a smaller coin first before you’re allowed to invest in fiat currency.