Cryptocurrency investment is as risky as other investments, hence BigONE always advises investors to only invest cash that they can afford to lose, and to thoroughly research and learn about a project in question before investing. For new cryptocurrency investors, higher-value cryptocurrencies and those that have been around for a while will be a solid pick.
If you are interested in Bitcoin investment and want to buy cryptocurrency, you may feel overwhelmed at first because the market is flooded with cryptocurrencies. There are already over 13,000 cryptocurrencies available for sale, according to CoinMarketCap data. When purchasing cryptocurrencies for the first time, it’s therefore not surprising that you may be confused as to which coin to select. But before you can invest in any cryptocurrencies, you must first open an account with a cryptocurrency exchange and deposit funds into an account. BigONE can recommend several cryptocurrencies that are appropriate for new investors, making it easier for you to begin trading in cryptocurrencies.
But before recommending cryptocurrencies, BigONE needs to teach new investors how to minimize risks. Before investing, it is critical to learn how to protect oneself.
Only invest what you can afford to lose
Cryptocurrencies, like equities, are volatile, so your holdings can equally rise or fall in value. Not only that, but many cryptocurrencies will fail for a variety of reasons, similar to a stock market delisting. If you simply invest funds inside your acceptable loss range, you will be unaffected if the market falls or the specific coin drops.
Prepare emergency funds
It’s easy for new investors to be caught up in the hype and buzz around cryptocurrency investment, and projects frequently give you the impression that if you don’t participate now, you’ll miss out. BigONE is here to tell you not to worry, and not to be afraid of missing out (FOMO). Creating an emergency reserve fund should be your first concern before you begin investing. With that in place even if the investment fails, you should not be unduly concerned about how it would impact your daily life.
Make crypto investments a part of your overall investment plan
Ensure that your crypto assets are merely a portion of your total investing strategy, not the entire plan. The benefit of doing so is that you may effectively diversify your investment risks, and avoid exposing all your funds to the volatility of the cryptocurrency market.
Use mainstream cryptocurrency exchanges
Using mainstream cryptocurrency exchanges can significantly lessen investment risks. Taking the BigONE cryptocurrency exchange as an example of the importance of security, we will retain the user’s assets in separate hot and cold wallets, employ several signatures at the same time, and monitor the wallet’s and user assets’ state in real-time. A unique private key management approach ensures the security of the private key. We prevent threats from numerous angles and ensure the safety of users’ assets by relying on robust technology and strict operating procedures.
Never stop learning and researching
Although investing in cryptocurrencies does not require becoming a crypto expert, it does necessitate understanding the fundamentals of cryptocurrency. Otherwise, you will be unable to choose a cryptocurrency with investment potential among a vast number of cryptocurrencies. Before acting, it is critical to thoroughly research and examine all of the cryptocurrencies in which you choose to invest in.
Long-term investing can assist investors to avoid panic buying and selling. At the same time, long-term investment can also help you avoid the impact of market changes and asset losses caused by impulsive investment.
After you’ve learned how to limit investment risks, let’s look at three cryptocurrencies that BigONE believes are ideal for newbie investors.
Bitcoin was the first cryptocurrency, and it currently has the largest market value. You know, cryptocurrencies that have endured the test of time are more likely to withstand future market volatility, and Bitcoin has past that test. It has suffered both significant and minor market fluctuations since its launch in 2009, yet it remains firmly at the top. It is worth mentioning that the rise and fall of Bitcoin prices also has had an impact on lesser cryptocurrencies; therefore, BigONE feels that Bitcoin is a cryptocurrency that new investors should consider purchasing.
Ethereum is the second-most valuable cryptocurrency in terms of market capitalization, and its technology underpins a wide range of decentralized finance (DeFi) enterprises. It is the first blockchain network to implement smart contracts, which are short pieces of self-executing code stored on the blockchain. It is also a tool used by developers to create apps for the Ethereum network. Although Ethereum is excellent, it does have speed and scalability issues. Due to its popularity, it has experienced network congestion and hefty prices. As a result, it is undergoing a significant upgrade to Eth2, which is scheduled to be completed in 2022.
Cardano, in comparison to Bitcoin and Ethereum, is a new cryptocurrency. It may be the riskiest as an investment out of the three cryptocurrencies. Nonetheless, with Cardano, new investors can learn about the benefits of blockchain technology. Cardano currently has collaborations with various African countries. It has, for example, formed a partnership with the Ethiopian Ministry of Education to employ blockchain technology to track students’ academic performance. Even though Cardano has taken a gradual and steady development path, it has already applied its own technology in real-world application scenarios, which bodes well for its future development and value as an investment.
BigONE believes that the three cryptocurrencies listed above are the greatest options for first-time investors. Don’t be swayed by articles hyping a particular token when making your first investment. It is critical to spend time learning about the market and thoroughly researching the cryptocurrency you intend to invest in. BigONE does not provide Bitcoin price endorsements or project guarantees. Investors must examine a variety of criteria, including project popularity, market trends, and their own risk tolerance, before deciding whether to invest and allocating their own funds.