For some people, the word bitcoin still triggers an eye-roll, but by now, most of us know that cryptocurrency is here to stay. With that in mind, it’s a good idea to make sure you’re clued up and well-educated on the topic, especially if you’ve ever considered investing yourself.
However, with so much misinformation floating around on the world wide web, it’s easy to assume that steering clear is safest, or to get overwhelmed with how to approach the process. If you’ve been having a bit of an internal battle over the ins and outs of crypto, here are some of the most important things we’ve learned about it over the years.
1. Education is Key
No matter what the nay-sayers might suggest, there’s nothing inherently dangerous or even risky about investing in Bitcoin or any other cryptocurrency. However, it is absolutely crucial that you get educated before committing to it – because uninformed decisions are what lead to disaster in any type of investing move.
There is an abundance of information available online. Look to professionals in the industry, and consult the Crypto 101 video series to help you understand the basics. You can even pay for professional consultants to help you in your journey if you want to be more assured you’re making good choices.
2. You Need a Secure Wallet
Choosing your crypto wallet is a bigger deal than you might think. Your wallet is your portal into the crypto world, and so picking something secure and reliable is important for a myriad of reasons.
An all-in-one wallet like Noones is one of the best options out there because the process becomes incredibly simplified. However, there are countless options on the market. What matters is that you do your research and pick a wallet that aligns with your needs, offers security, and has good user reviews. The voice of the people is always something to pay attention to, and if multiple people have had a negative experience, it’s a good sign to steer clear.
3. Scams and Phishing Are Real Problems
Even though more and more people are wising up, there are some common crypto scams that are still alive and well in 2023, and it’s essential that you’re aware of them and know how to protect yourself.
Make sure you know about the potential risks, and avoid ever sharing private keys or personal information with anyone – especially over text or online messaging. You should be able to identify the warning signs, but when it comes to your finances online, it’s best to be extra vigilant.
4. Diversifying is Smart
Any serious investors will tell you how important it is to diversify your portfolio, and having a well-balanced crypto portfolio is just as important as balancing your stock investments.
A crucial part of this is maintaining the balance between your crypto portfolio and overall investment portfolio. However, you’ll also want to ensure that your crypto portfolio itself contains a few different types of cryptocurrency with different risk levels.