Cryptocurrency 101: How to Invest Without Losing Everything
The crypto market has created massive wealth for young investors across the US and Europe. However, it is also one of the most volatile and risky financial spaces in the world.
If you want to explore digital currencies safely, here are the unwritten rules of the game.
1/The Golden Rule: Only Risk What You Can Lose
* High Volatility: Crypto prices can drop by 20% or more in a single hour. Never invest your rent money or life savings.
* Avoid FOMO: Fear Of Missing Out drives people to buy at the absolute peak. If an asset is already pumping aggressively, you are probably too late.
2/How to Pick Safer Assets
* The Giants: Stick to established assets like Bitcoin (BTC) and Ethereum (ETH) which have real-world utility and massive institutional backing.
* Avoid Meme Coins: Coins named after internet jokes or animals can collapse to zero overnight. They are gambling, not investing.
3/ Secure Your Digital Assets
* Not Your Keys, Not Your Crypto: Keeping your funds on an exchange leaves you vulnerable to hacks. Use a hardware wallet for long-term storage.
* Two-Factor Authentication (2FA): Always enable app-based 2FA (like Google Authenticator) on your crypto accounts. Never use SMS verification.