5 Tips For Crypto Beginners To Secure Their Investments

I feel no shame in admitting that I washed my crypto account several times. Even though they did not have huge investments, it was hard-earned money that I saved by doing petty jobs. Nevertheless, after years of failing, I was finally able to crack the code of being profitable in crypto.

Speaking from experience, I believe I made some novice mistakes which could’ve easily been avoided, only if someone had guided me from the start.

Being a self-learner, I learned the basic concepts of crypto from different YouTube channels.

Undoubtedly, they helped develop a winning strategy. But most times, a winning strategy alone isn’t sufficient in crypto. So, to help beginners who’re just entering the crypto world, I’ve got a few tips to share so you don’t suffer losses like I did.

Let’s take a look.

Choose A Trustworthy Crypto Exchange

Most crypto exchanges like Binance, OKX, and KuCoin are trustworthy, and you should have no problem trusting them with your investments. However, some exchanges have a bad track record of keeping their clients’ money secure.

Oftentimes, crypto exchanges are targeted by hackers and bad actors to steal money from them. As a result, you can lose all your investment in the exchange. Luckily, I used Binance from the start, and with its secure encryption and authorizations, I never faced such issues.

Also, while choosing a crypto exchange, I’d suggest you focus on the interface. Some exchanges have a complex interface, and it might be difficult to navigate.

Trade On a Reliable Internet Connection

A reliable internet connection is as important as a credible exchange in crypto trading. When using tools like TradingView for opening/closing trades, you’d need a high-speed connection that updates data in real-time.

Honestly, I suffered losses in several trades and missed countless opportunities to earn a profit because of my connection. Here, it’s important to understand that even if you’re using the best exchange, it might not fetch accurate data on a sluggish connection.

Also, as for opening and closing trades, keep in mind that the crypto market has a high volume. So, with high volatility, you need a blazing-fast connection to quickly open and close trades.

So, once I understood this problem, I explored numerous internet service providers and opted for Spectrum as it offered the fastest connection. Besides, the Spectrum Internet cost was also under my budget, since I couldn’t spend more as I was suffering continuous losses in crypto due to a spotty connection.

Diversify Your Portfolio

Rather than putting all eggs in a single basket, it’s recommended to invest in different crypto projects. I kept buying Cardano (ADA) for a long time, as I believed it was a strong project with solid fundamentals.

However, if only had I invested half of that amount in Solana (SOL), I could’ve doubled my investments.

Here, keep in mind that it’s always better to invest in different projects, rather than sticking to one. Preferably, you should invest more in stablecoins like Bitcoin (BTC), Ethereum (ETH), etc.

Then, allocate some funds to ALT coins like SOL, and lastly, invest a very small portion of your capital in meme coins like SHIB, DOGE, etc. This way, a diverse portfolio with a mix of every major coin can dramatically increase your chances of being more profitable in the long run.

Stick To Spot Trading

As a beginner in crypto, I wanted to make a quick buck. And for that reason, I stepped into Futures trading without any experience. It was a foolish mistake, which washed my account numerous times.

Honestly speaking, Futures trading is complex and nothing like buying and selling coins in Spot.

You have to read different market fundamentals and technical factors and then make a prediction. Additionally, you also have to watch out for external factors like financial news or global events to successfully predict the market’s movement.

For beginners specifically, I believe keeping an eye on all these factors can be extremely difficult.

And for that reason, they should learn how the crypto market works while sticking to spot trading. Once they get hold of crypto and understand its concepts, only then should beginners start Futures trading with a small capital.

Avoid Fear Of Missing Out

Once you enter the crypto world, you’ll hear every kind of news. Some people might say that BTC will reach $500K in a fortnight. While a few people might force you to believe that a big crash is coming.

Here, I’d say that it’s good to be aware of the market’s condition and sentiments, but never believe anything until you verify it first. FOMO, or Fear Of Missing Out, is a psychological weapon in the crypto market.

Seasoned traders spread fake information in crypto groups, communities, and forums. And, most clueless beginners fall right into their trap and lose their investments. So, always verify every bit of information, and never open/close a trade because of FOMO.

To wind up, I’d say that with correct guidelines and instructions, crypto is not difficult at all.

You still need a winning strategy that works well in the market, but these tips can save you from big losses. So, follow these tips to secure your hard-earned money.