Fundamental Tips for Beginners
- Understand the Crypto Market Fundamentals. i.e. what is Bitcoin? What is blockchain? What is a smart contract?
- Always do your own research; Don’t blindly follow an investment tip from a third party (regardless of how successful they are).
- Develop an Investment Strategy (guided by an accredited financial advisor)
- Investigate your ideal central exchange (CEX) company, and start a new account. Complete the KYC (Know Your Customer) process to prevent future transaction restrictions.
- Start your own personal wallet (to have full custody of your coins)
- Purchase your coins in CEX
- Transfer your coins to your personal non-custodial wallet. In some cases, you may leave your crypto assets in one exchange wallet – do your own research to understand the pros and cons.
- If you are a long-term holder (#hodler), always stick to your Investment Strategy. Always have an exit plan for each coin/token, and don’t get distracted by day-to-day market volatility. In Crypto terms this is called ‘to zoom out’ – don’t check your portfolio every hour/day. Crypto Market is very volatile as it’s active 24/7/365 across the globe. You are destined to make irrational/panic decisions with no committed plan.
- If you develop an interest in extending your portfolio and becoming a medium-term trader, then be prepared to do plenty of reading and research i.e. subscribe to various social channels to stay in touch with market trends and other opportunities. Always do your own research!
- As a medium-term trader, you should learn about; the basic level of charting, project credentials and the nature of projects (i.e. DeFi, NFT, L2 Utilities etc).
- You can also investigate how you could earn passive income via various decentralised financial (DeFi) opportunities. i.e. by staking, loaning/borrowing etc.
- For long-term investment, it’s common practice to measure your portfolio growth progress by using your favourite cryptocurrency as a benchmark (i.e. BTC). Ultimately, your portfolio may deliver growth in USD or AUD terms, but it may underperform in BTC value.
- Absolutely essential to have an Exit Strategy, as the crypto market can move up and down very quickly. 5%+ daily volatility is accepted as a normal trading day, so it’s important to stick to your plan for when to exit.
Top-5 FAQs for the Beginners
How to select the right crypto wallet
A Crypto wallet is a digital wallet where you store and control the ownership of your coins and tokens. There are two ways to store your crypto assets, and the topic of which wallet is the best option is heavily disputed amongst the Crypto community. Search Google: ‘not your keys, not your coins’. Custodial Wallet […]
How to learn more about the crypto market?
The Crypto market is a socially driven platform; hence, social platforms are the best way to update your Crypto knowledge. The below list of external links is suggested based on our personal experience over the years, and it’s also worth stressing that any of these parties does not sponsor us. Youtube One of the best […]
What is the difference between a coin vs token?
The crypto market has more than ten thousand listed projects, and all have their currencies; coins or tokens. Each project has a particular purpose and offerings. Some are big, and many are small, but all need their own currency to sustain their operation. Some projects have their own layer-1 platforms. Evolved from Bitcoin’s “blockchain” […]
How to protect your web3 assets
Crypto and NFT investment can be very rewarding but comes with high-level risks. You can not control your assets’ performance, but you can certainly maintain the security of your assets. You should never give your wallet information to anyone – or leave it on your computer. Your recovery seed is only to be used […]
What is NFT?
NFT stands for ‘non-fungible token’, and most of these assets can be secured on the Ethereum and Solana ecosystems. Other blockchains are also slowly gaining market share with their version of NFT smart contracts. To understand NFTs, first, we should explain FTs; In simple terms, FT (fungible tokens) are issued in bulk in one smart […]