Three Things You Need To Do Before Buying Cryptocurrency
Before investing in the cryptocurrency market, BigONE recommends that you carefully study and understand the cryptocurrency market to know what you are buying. According to recent survey data, it is predicted that more than 50 million Americans may buy cryptocurrency in the next year. Market research data shows that investors with spare money are considering expanding their funds to investment markets other than the stock market. However, many of the individuals who took part in the research survey have never bought any cryptocurrency. Therefore, BigONE recommends investors consider three key things before buying cryptocurrencies.
Prepare your emergency funds
Cryptocurrency is a volatile investment, and the value of your cryptocurrency fluctuates every day. Therefore, if you want to invest in cryptocurrency, preparing emergency funds in advance is very important. For example, suppose the value of your cryptocurrency investment declines, and you urgently need cash. With spare funds available, it means you do not have to sell your cryptocurrency at a loss to cash out.
Ideally, before you buy any cryptocurrency, you should have a sufficient reserve of emergency funds because it’s recommended you hold your cryptocurrencies for a long time to make decent profits. Your emergency funds should be enough to cover your future, typically to cover living expenses for three to six months.
Research different cryptocurrencies
As a beginner in cryptocurrency investment, you may be familiar with well-known digital currencies such as Bitcoin (BTC) and Dogecoin (DOGE). But you should also know that there are thousands of cryptocurrencies available. Instead of assuming that the most popular cryptocurrency is your best investment choice, it is better to do some more research. Examine different types of cryptocurrencies to see if there are better options.
Of course, the advantage of choosing a cryptocurrency like Bitcoin is that it is more established than other digital currencies. Popular cryptocurrencies are not necessarily the wrong choice, but from an investment perspective, they are by no means the best option. It’s worth doing more research to see if there are other cryptocurrencies worth investing in.
In addition to BTC and DOGE in the market recently, there is also a brand new DogeCola (DOGECOLA) that is also very popular and is available on the BigONE exchange. DogeCola is a cryptocurrency with both practical use and token value, being based on the Binance Smart Chain. DogeCola was created after the launch of Dogecoin, its block speed is ten times faster than Dogecoin. In addition, the team is launching the first Doge drink on the market, which means it will become the world’s first cryptocurrency that expands into the food sector. DogeCola also aims to save the world from plastic pollution by donating money to eco-charities in partnership with its community.
Buying cryptocurrencies strategically
Some people decide to buy a cryptocurrency and then invest thousands of dollars on a whim. This approach is no different from gambling. Before investing in cryptocurrency, you must formulate a corresponding investment strategy. Finding a strategy that suits you is the first thing every cryptocurrency investor needs to do. In general, make a plan to invest 75% in cryptocurrency, with 25% in stocks or funds, or set your portfolio according to suit your strategy. These are decisions to think about before you enter the cryptocurrency market.
Cryptocurrencies can help you make more money, but it is important to choose wisely. Whether you are buying cryptocurrency for the first time or a more common investment such as stocks or funds, a good rule of thumb is to plan ahead and conduct research. When you deposit funds in an investment account instead of a bank, it means that you need to bear the risks that come with seeking higher returns. Therefore, having the elements of a reserve fund, and creating a robust researched strategy is key before you start considering a specific cryptocurrency to invest in.
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.