Things To Know Before Buying Cryptocurrency

The crypto market is attractive due to lots of earning opportunities it opens. More and more new users join this field every year. However, not all succeed. Trading and investment are not only about buying crypto and reselling it at a higher price. It’s also about knowing how the market works, forecasting its trends, and acting quickly with no delays. Let’s see what steps a beginner investor should take to succeed. First, you should determine what crypto asset you want to buy.

What helps investors pick an excellent asset to invest in:

  1. Studying the project, technology underlying the project, uniqueness and usefulness of the product, and benefits it brings to the industry. 
  2. Team of developers. Learning the background of developers helps understand if they have expertise in the crypto field. If they participated in notable projects, it is a good reason to trust them. 
  3. Crypto charts help assess the market trend and predict future price movement. Charts show the trade volume and dynamics of the assets rate change in different timeframes.
  4. Roadmap. Read the project’s future plans, partnerships, maybe some platforms launch tokens, games, etc.
  5. Social media. Active community engagement and regular posts on social media indicate that the project is developing. 

So if you have a few projects to pick and buy crypto, check them across the mentioned factors, and you will understand if it’s worth it.

Picking A Platform

The next step is picking a platform for buying crypto. Usually, traders use centralized and decentralized exchanges. Decentralized platforms are rather complicated for a beginner trader, so it might be better to start with a centralized exchange.

Centralized crypto platforms are easy to handle and legitimate. They provide security for users’ funds and several layers for account protection. Examples of centralized exchanges:

  1. Binance
  2. WhiteBIT
  3. Coinbase

The question “When to buy cryptocurrency?” often disturbs beginner investors. Some people follow the trend and buy when the market is growing. However, most experienced traders adhere to the rule “Buy when all others sell and sell when all buy”. Such a strategy allows to buy crypto at a low price and gain profit when the trend changes.

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