The word Bitcoin still causes some people to roll their eyes, but now most of us know that the cryptocurrency is here to stay. With this in mind, it's a good idea to make sure you're knowledgeable and well-informed on the subject, especially if you've ever considered investing on your own.
However, with so much misinformation circulating on the World Wide Web, it's easy to assume that the safest course of action is to keep your distance or to get overwhelmed with how you approach the process. If you've been internally arguing about the specifics of crypto, here are some of the key things we've learned about it over the years.
1. Education is key
No matter what the naysayers may say, there is nothing inherently dangerous or even risky about investing in Bitcoin or any other cryptocurrency. However, it is absolutely important that you do your research before committing to it – because uninformed decisions will lead to disaster in any type of investment venture.
There is a wealth of information available online. Reach out to industry professionals and consult the Crypto 101 video series to understand the basics. You can even pay professional advisors to help you along the way if you want to be more confident that you're making good decisions.
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 world of cryptocurrencies, and so choosing something safe and reliable is important for a variety of reasons.
An all-in-one wallet like Noones is one of the best options on the market because it makes the process incredibly simple. However, there are countless options on the market. What's important is that you do your research and choose a wallet that meets your needs, offers security, and has good user reviews. You should always pay attention to people's voices, and if several people have had a negative experience, that's a good sign to stay away from it.
3. Fraud and phishing are real problems
Even though more and more people are aware of it, there are some common crypto scams that are still alive and well in 2023, and it is important that you are aware of them and know how to protect yourself.
Make sure you are aware of the potential risks and avoid ever sharing private keys or personal information with anyone – especially via SMS or online messages. You should be able to recognize the warning signs, but when it comes to your online finances, it's best to be extra vigilant.
4. Diversification is smart
Any serious investor will tell you how important it is to diversify your portfolio, and having a balanced crypto portfolio is just as important as balancing your stock investments.
A crucial part of this is maintaining balance between your crypto portfolio and overall investment portfolio. However, you should also make sure that your crypto portfolio itself contains a few different types of cryptocurrencies with different levels of risk.
