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9 Shocking Facts You Should Know Before Investing in Cryptocurrency

Digital currencies can be an exciting investment opportunity, but new investors risk losing their money if they are caught by scammers or invest in a cryptocurrency that does not have a track record.

In this section, we will look at 9 things you should know before investing in the cryptocurrency market.

1. Time decides everything – Is the cryptocurrency market closing?

• Digital assets are incredibly unpredictable — and cryptocurrencies like Bitcoin and Ethereum can experience wild fluctuations in value with little warning or warning.

• Generally speaking, cryptocurrency investors are trying to “buy deep,” which means they buy more altcoin when its price drops in value.

• Unlike traditional stock markets, cryptocurrency markets operate around the clock, every day of the year.

• Hurray! This means that you can “buy a dip” or “sell a dip” at any time on centralized cryptocurrency exchanges (CEX) or decentralized cryptocurrency exchanges (DEX).

2. Bitcoin can be bought with traditional currency.

Cryptocurrency exchanges such as Coinbase and Finance are designed specifically for new investors in cryptocurrency. They allow you to buy virtual currencies using your debit card, credit card, or bank account. If widespread rumors are to be believed, financial institutions such as PayPal are also planning to participate.

3. Watch out for scammers.

• If you look on social media, you may notice a lot of hype around an investment strategy that promises huge profits from little-known crypto assets.

• Others make exaggerated predictions about which direction the bitcoin price will move. The crypto world, unfortunately, contains some dishonest actors, and billions of dollars have been lost as a result of Ponzi schemes and exit scams.

• We have moneyvests.com there is a quick guide on how to avoid cryptocurrency fraud, and another one on how to keep your cryptocurrency safe can be found here.

4. Develop a long-term investment strategy.

• Successful cryptocurrency investors are developing a strategy for managing their cryptocurrency assets. 

• This may entail placing a limit order, which means that their bitcoin will be sold automatically if the price reaches a certain level, for example.

• A number of cryptocurrency exchanges also allow you to copy the trades of well-known traders in the cryptocurrency market.

5. Understand the extortion strategy

• Scammers often thrive by instilling a sense of FOMO, or “fear of missing out,” in their victims.

• Carefully consider your options before investing in cryptocurrencies. and keep in mind that if something seems too good to be true, it's almost certain.

• The cryptocurrency industry is replete with unbiased reviews and fiercely independent news sites that can help you make an informed decision about investing in cryptocurrency.

6. Initial Coin Offerings (ICO)? Conduct your own investigation

• In 2017, initial coin offerings (ICOs), in which companies create and sell new cryptocurrencies, were extremely popular.

• Despite the fact that the market has cooled down, there are still some investment opportunities. This said, if you are planning to invest in an initial coin offering (ICO), make sure you have carefully read the official documents and determined whether the company's activities require the use of blockchain technology before moving on.

7. Beware of the "fear of missing" (FOMO) strategy.

Prices for popular cryptocurrencies can rise sharply and rapidly during a bull market.. Proceed with caution, investing in bitcoin at inflated prices can lead to significant losses if the market corrects.

8. Choose a reliable cryptocurrency exchange

• Look for cryptocurrency exchanges with a high level of liquidity, a variety of crypto assets, reliable security measures, and a proven track record of reliability.

• Binance has a page dedicated to those who are buying bitcoin for the first time, which ranks exchanges depending on how easy it is to buy cryptocurrency, and also provides additional information about its organization and accepted payment methods.

9. Become a part of the online community of cryptography lovers.

• The fact that the digital currency space is a fashionable area means that everything is changing and developing at a rapid pace..

• The fact that a very strong and active community of investors and enthusiasts of digital currencies communicates around the clock is one of the reasons for this.

• Advertise yourself in this community to learn about the latest developments in the world of cryptocurrencies. Reddit has become a popular destination for those interested in digital currencies.

• Many other online communities are constantly active.

What is the result?

As for cryptocurrencies, one of the most difficult obstacles for investors is the temptation to stay away from the hype.

Despite the fact that cryptocurrencies are becoming increasingly popular, analysts continue to warn investors about their volatility and unpredictability.

If you decide to invest in the cryptocurrency market, it is very important to conduct a thorough study, as is the case with any other investments.

Think about why you are interested in this particular investment instrument. In addition to your knowledge of cryptocurrencies and blockchain technology, to better prepare for determining whether this type of investment is worth it in your circumstances.