Pining to Dabble in Crypto? Ask Yourself the Following Questions!

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The global pandemic of 2020 has wreaked havoc on the money markets across the globe! Businesses have witnessed doomsday as never before, plagued by repeated waves and multiple episodes of lockdowns and closures! In these tumultuous times, the only financial asset that has held its ground is the crypto-currency market largely dominated by Bitcoin.

Gone are the days when virtual currency meant obscurity! Today, you can easily find a “crypto ATM near me” by a simple online search. These teller machines can be used for crypto transactions in the most convenient way possible. If you have money and are thinking of high-yield returns, BTCs are your go-to option. Should you start unprepared? Well, ideally no! Here are some very important questions to ask yourself before you begin with crypto trading.

Questions for Self-Assessment before Joining the Crypto Club!

Do you know what you are getting into? Before you can invest a single penny, make sure you know what you are getting into. Have you read up about the salient facts concerning crypto markets? Do you know where to source the coins from and how to sell them for profits? Are you aware of the insane volatility of these markets? Make sure you are informed well before putting any money out in the market. Do not do it just because others are and just because success stories are doing the rounds.

Do you know how to make mathematical calculations for profit gain? Irrespective of the nature of investments, every invested penny should be backed up with mathematical calculations. Simply checking on the price of a coin isn’t enough! You need to know about transaction fees, other forms of deductions if any, and so on. Do your math properly, factoring in all pros and cons before making transaction-related decisions. If you head to a Bitcoin ATM in California for instance, there will be a fee charged for every transaction you make and this can be a significant amount!

Have you considered more than one coin? Is your knowledge limited to Bitcoin alone? Are you keen on investing in BTCs only? If yes, it’s time to diversify your risks. Bitcoin may be the star performer but one never knows what tomorrow can bring. Putting your money in more than one coin type is shrewd and wise. Altcoin and Ethereum are great choices for instance. Read up about them. Never leave your cash trapped in one crypto.

Have you any idea about stop-loss? Whereas being able to stomach the intense volatility of the virtual currency market is one thing, being extravagantly courageous is quite another. Whenever you invest in the market, always plug in a level for “stop-loss”. If the price reaches that level, the product is automatically sold, be it on profit or loss. Some investors do not engage in a stop-loss limit owing to greed. Remember, minimizing losses is equally important as enhancing profits. Both need equal attention.

Mistaking encryption for security is another mistake committed by investors. Cryptocurrency is encrypted but that does not guarantee security. Hacking is common in the virtual currency market. You need to be especially vigilant to keep your reserves safe and sound. 


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