If you could give someone just getting into crypto one piece of advice, what would it be?
For our inaugural installment of the Crypto Exchange Reviews expert opinion series, The Bot Guy asks a group of longtime crypto investors what they could pass on to people just getting their feet wet. This is what they had to say:
Secure your phone. Most crypto investors are vulnerable to the threat of sim swapping – which is quite real. There are numerous loopholes in the current security system and many of us have been a victim one way or another. As an fyi, 80% of attacks on cellphone are successful. It’s good to secure your devices today, as procrastination would lead to detrimental consequences. Always remember, true identity theft is beyond financial loss. Stay SAFE!
Cryptocurrencies are both volatile and speculative, so if you’re risk-averse you should consider a small allocation. In any case, you should never have more than 5% of your portfolio in one investment security, including cryptocurrencies. Investors should consider proper diversification in their portfolio, specially when in comes to speculative asset classes like cryptocurrencies.
Before investing in cryptocurrencies, NFTs or other blockchain technologies, it’s important to look before you leap and pause before you purchase. Imagine you’re walking into a dimly lit casino with very few rules. How much would you be willing to lose? That’s the maximum you should be prepared to invest in the crypto space, too.
If I could give only one piece of advice, it would be to do your research. It may sound cliche, but it’s real. There will be so many things that you hear from experts, pseudo-experts, influencers, celebrities, and the like. None of that matters. Not all cryptocurrencies are created equal. If you don’t understand it, you shouldn’t be investing into it. Take your time understanding the reason why you should invest. Then, and only then, should you make the jump.
Don’t trust, verify. Do your own research, come to your own conclusions. This is the mantra of Crypto. There is so much contained within this new business sector it’s tough even for those involved to follow everything. Don’t take one person or one website’s word for anything, read up on the details – leg out all the threads of information, verify, and ignore that which you don’t agree with. Stay safely within your comfort zone and step out if and only if you have done the proper research to verify from a few angles that what you are looking into is what it is.