How to become a smarter crypto investor
Are you one of those people who is deeply fascinated by cryptocurrency, but who is not a little unsure of how to proceed to get it? And above all – what do you need to do to be able to describe yourself as a smart crypto investor?
When it comes to cryptocurrency, many people seem to think that you have to buy a whole coin when you first get it. A quick google search will also make it appear as a more or less unattainable dream, in that for example 1 BTC (bitcoin) at the time of writing costs 391 711.78. For many, this is a whole year’s salary!
But in practice, it is not the case that you have to spend 391 711.78 kroner to get some bitcoins . There is no lower limit on how much bitcoin (or other cryptocurrency) you have to get, so if you want to buy bitcoins for a fiver, then do it!
The fact that you have to buy a whole coin when you buy cryptocurrency, is simply a good old-fashioned myth. But there is at least one thing that is not, and that is that there are smart crypto investors and there are less smart crypto investors. In this article, we will take a closer look at what a smart crypto investor does that others do not.
What is a crypto investor?
But what exactly is a crypto investor? This is a case where the meaning lies in the concept itself.
Cryptoinvestor is a complex term. The term consists of the words «crypto», which is an abbreviation for cryptocurrency, and «investor». Cryptocurrency is a digital currency, and an investor is someone who invests in a concept where the idea is to make money doing so.
Based on the explanation above, we can state that a crypto investor is a person who invests in cryptocurrency. And the idea of that person is that they can make money by making this investment.
You are described as a crypto investor regardless of which cryptocurrency you invest in. It is important to emphasize this, as there are hundreds of different cryptocurrencies today. In addition, new ones are constantly appearing.
5 great tips that will help you become a smarter crypto investor
In today’s modern society, anyone who wants to can invest in crypto, but there are two types of crypto investors.
There are crypto investors who have become so by simply jumping into the crypto world because it is “in” and only hoping for the best, but there are also some who have really gotten into it and really got into the concept. . The latter can really be described as a smart crypto investor.
If you are relatively new to the game, then it can be a little difficult to navigate around the crypto market. We have been there ourselves, and therefore we have collected some good tips that we are absolutely sure will help you become a smarter crypto investor.
With that said, this is not a tip that only appeals to people who are new to the crypto world. The tips we are going to look at below may be just as relevant for experienced crypto investors as they are for beginners!
Learn the basics
If cryptocurrency is a more or less newly discovered interest, then it is very important that you familiarize yourself with the topic first. Cryptocurrency is a really big topic, and knowledge is simply a prerequisite for being able to make good decisions in connection with the purchase of cryptocurrency.
Many people find it difficult to know where to start, which is why we say you should start with the basics. Do you not have complete control over what is really meant by blockchain technology? Then it’s your starting point, and that’s where you’re going to start.
Learning the basics of cryptocurrency can in a way be compared to learning to ride a bike. In both cases, you have to focus on one thing at a time, or it will go awry. When you are going to learn to ride a bike, you must first find the balance and learn to keep it. When you want to learn about cryptocurrency, you have to start with the simplest.
Once you have learned the basics of cryptocurrency, it will be much easier to get acquainted with the different cryptocurrencies you are considering investing in as well, regardless of whether it is Bitcoin , Ethereum , Litecoin or a completely different cryptocurrency.
Watch our video where we explain basic cryptocurrency:
Check out the cryptocurrency’s white paper
Even though you have now learned the basics of cryptocurrency in general, it does not mean that you have finished reading up on the subject.
If acquiring cryptocurrency is intended as a long-term investment, for example that you will use the money to buy a larger home in a few years, then you must see this in the context of the cryptocurrency you choose. Can this cryptocurrency help you reach this goal?
To find the answer to what each cryptocurrency can do for you, you should take a look at the white paper of cryptocurrency. It is a document where you can read more about the details of each cryptocurrency.
In the cryptocurrency’s white paper, you will also find information about the company behind the cryptocurrency, as well as how they have resolved the financial and commercial aspects around it all.
Here you will be explained “white paper” in two minutes:
Get as much information as possible
Cryptocurrency is a concept that is constantly evolving. This concept is constantly evolving, which means that you are never fully educated. You simply have to keep up to date at all times if you are doing something like cryptocurrency.
However, there are several ways to obtain information. There is no need to browse different websites for information. This can quickly become a bit monotonous and boring in the long run. Instead, it is important to remember that there are many in the same or similar situation as you, and it is something you should take advantage of as much as you can.
Investigate how the environment associated with cryptocurrency is in the area where you are located. Here it is only the imagination that sets the limits. We have some suggestions on what to look for if they exist:
- Cryptocurrency groups on Facebook. Here it does not matter about the national and international, as both can give you useful information that you can take with you further. If there is something you should be skeptical about, then there are groups that accept sales and promotion, because it is not certain that these groups are as serious as the groups that do not allow this.
- Do you live in a big city and have heard rumors that there will be a lecture on cryptocurrency that you are interested in? Then you should not hesitate for a single second to attend this lecture. The same applies if it arranges social evenings or the like.
Being new to an environment is generally difficult, and the cryptosphere is no exception. But if you are relatively new to the game, then it may be that you know someone who has more experience in the field than you yourself have? If this is a person you know well, then you can ask the person if they have any tips. For example, they can be an important resource for you!
Read about traders who have achieved success
In the media picture, articles about traders who have achieved success with various cryptocurrencies often appear. If you want to become a successful trader yourself, then these are news items that you should definitely follow with an extra eye.
However, it is important to remember that the information you get from here should only be used as inspiration. It is easy to think that the strategy of a successful trader automatically leads to success, but this is not the case at all. It is not certain that the strategy that worked for them will work as well for you in practice.
Therefore, you should read about the traders in question and keep that in mind as you work out your own strategy. Once the strategy has been developed, you should think carefully about why you think this particular strategy is going to work and what you need to do to get it to work.
Be critical of what you read
Ultimately, it is entirely up to you to decide which places you want to obtain information from. In today’s digitalized world, you can find as good information online as you can in a physical lecture. Here’s the way you are most comfortable with that applies.
However, there is one thing that is very important to keep in mind. Whether you are at a lecture or reading an article online, you should be a little critical of what you hear or read. Do not take too good fish, but check it out at several sources.