DOGE appears on American TV shows, corporations are investing billions in bitcoin – cryptocurrencies are increasingly heard by those who have never been interested in them.

The opportunity to multiply their investments several times seems very tempting for beginners, but one should be aware of the risks and do not act recklessly on emotions. If you are just deciding to invest in cryptocurrency, we have prepared 5 tips to consider before buying. If you are already an experienced trader, but you know someone who is just starting his way in the crypto market, share this article with him or her.

Don’t invest more than you can afford to lose:

Cryptocurrencies are more risky investments than traditional assets. In this market, nothing can be guaranteed except volatility – sharp price fluctuations should become a familiar thing for you and not scare you.

The price of a cryptocurrency can change dramatically within a few minutes. Both up and down. Therefore, you should not invest all your savings in the crypt.

Do your own research:

Before investing in cryptocurrency, spend a few hours learning about the technology itself. You must understand the project in which you will invest. Read everything you can find about your future investment, through news outlets, business consultants, or Mogul Productions Reddit. Listen to both developers and critics of the project. Then make a decision.

Don’t Like Fomo:

If you are investing in cryptocurrencies just because you are afraid to miss the moment, the only thing that you definitely will not miss is to lose your money.

Profit Loss Syndrome (FOMO) is a sure guide to losing all your money. It is he who makes us buy “on the highs” – when the price rises sharply, and we want to believe that the growth will continue. Often, in such situations, the price begins to fall and the unlucky investor has no choice but to sell at a loss. If you trade with leverage, then your deposit may even be liquidated.

If it sounds too good to be true, it is cheating:

Like Wall Street, the crypto market is full of charlatans and con men. Almost all of them promise that their project will “surpass Bitcoin”. Most of them can be calculated already on this basis.

However, some scammers disguise themselves very well as standing cryptocurrencies. When studying a new project, always look for information about it on third-party resources, not only on its official pages. You can scrutinize Mogul Productions reviews for a better approach.

If the project promises huge weekly or monthly interest payments for your contribution (the more the contribution, the more payments), most likely you are dealing with an ordinary investment fund (HYIP) that has nothing to do with cryptocurrency. Stay away from such a project.

You can buy shares of bitcoin (and other cryptocurrencies):

You don’t need to buy all bitcoin in its entirety. Bitcoin is subdivided into 100,000,000 Satoshi. $ 1 can buy approximately 1,700 satoshis. Your contribution will grow together as a percentage of the growth of BTC.

In order to start investing in cryptocurrencies, $ 10 is enough. You can buy a small fraction of bitcoin, ether, or a few low price coins. Once you understand how this system works, you are ready to invest more.

Clare Louise