What basic knowledge should you have before investing in crypto?

“Here in my garage, just bought this new Lamborghini….” No-no, stop it right there.  I don’t have a garage with a Lamborghini nor does my garage have a wall of books.  All jokes aside, Tai Lopez was right about one thing, knowledge and how to attain it. Here we are in 2021, a pandemic has sidelined the entire world for over a year, Bitcoin is at an all-time high, and you want to get in.  So, you do. But you have no idea what you’re doing, you throw money at it anyways because it’s supposed to make you rich right now. But it doesn’t, well at least not fast enough so you listen to someone else and invest in another coin because this one will make you ultra-rich! A few weeks later it bottoms out and you lose all your money. Now you hate crypto telling everyone it’s a scam.

Tai Lopez Lamborghini
If you invest wisely, maybe someday you’ll be able to buy your own Lamborghini

“Where did I go wrong? How did I lose all my money? Why didn’t someone warn me this was going to happen?” Unfortunately, you forgot one small but very significant step in your brief cryptocurrency journey, gaining knowledge of сryptocurrencies.  It doesn’t matter what you do, what job you work, what course you take in school, to be successful you need to gain knowledge on that topic. I have 4 beginner steps for you to gain knowledge as you begin your cryptocurrency journey!

4 steps to get knowledge about crypto

Step 1: Do your own research (DYOR)

You don’t need to know or to memorize the entire White Paper for Bitcoin or any other coin. However, you should check the coin or token’s purpose or what it’s going to be used for. Does it have a use case or utility?  Maybe it’s just for fun?  Sometimes the opinions of others are biased and can affect your take on a project.  Sometimes the bias is on purpose so you can buy the coin and add to their bottom line. Be careful!  As you research and learn, those biased opinions will have less of an influence on you and now you can draw your own conclusions and decide whether to purchase it or not.

Step 2: Find yourself a cryptocurrency mentor or join a class that teaches cryptocurrency.

You will gain a wealth of knowledge from individuals who have experience and have made the mistakes for you already. Can’t beat that! Also check out websites like CoinSocialStory. It is a great platform to use when comparing cryptocurrencies to each other, looking at market data in real time and converting fiat currencies into crypto. 

Crypto monitor
Track crypto prices and other data!

Step 3: Set and have realistic goals. 

Do not get swayed by the individuals who knock it out the park with some crypto and turn millionaires overnight. In reality cryptocurrency is a long-term investment hold. Yes, some coins can turn a profit quickly, but this is not something you want to get into unless you’ve done the research, better, a ton of research and will to accept point number 4…

Do your own research in crypto
Always do the research before investing

Step 4: Trade or purchase only what you are willing to lose. 

This cannot be stressed enough as it could eventually ruin people new to crypto quicker than burning toast! Whether it be running for the shiny new token, or trading without prior knowledge or training, the results can be devastating.  

The cryptocurrency market can be a profitable and fun market to be. That being said, if you do not take the time to learn and gain knowledge before entering the market, you’ll end up on the wrong side of the track.

In conclusion, don’t expect to get rich fast without gaining basic knowledge about the crypto market. Patience and research are the keys to your success! Use only reliable and trustworthy platforms for your research. For example, CoinSocialStory allows you to compare different assets, share crypto infographics and track your favorite cryptocurrencies. Follow the trends of the crypto market with CoinSocialStory!

This article was written by Simon Smith, follow his blog for more educational content about crypto!

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