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It’s 2022, and you’ve decided to invest in cryptocurrencies. It is a decision that could pay off big time in the years to come. However, it’s essential to make the right moves when investing in cryptos for the first time. We will discuss six of the most important things to do when buying your first crypto.
1. Do your Research
When buying crypto, the first move you should make is to do your research. There are a lot of scams and bad actors in the cryptocurrency space. It would be best if you were sure you know what you’re buying before you invest any money.
Use reputable sources to learn about different cryptocurrencies and always be skeptical of anyone trying to sell you something. Many people will try to take advantage of new investors.
2. Don’t Invest More Than You Can Afford to Lose
Cryptocurrencies are volatile and tend to go through many ups and downs. You should only invest money that you’re willing to lose. If you can’t afford to lose the money, don’t invest it.
Cryptocurrencies are a risky investment, and there’s no guarantee you will make money. There’s a good chance you could lose money. Only invest what you’re comfortable losing, and don’t put all your eggs in one basket.
Diversify your investments to reduce risk. Don’t put all your money into one cryptocurrency. Spread your investment out among different cryptocurrencies to reduce
3. Use a Reputable Exchange
When buying cryptocurrency, you need to use a reputable exchange. There are a lot of exchanges out there, and not all of them are created equal. Some exchanges are more reliable than others, and some have a history of getting hacked. Do your research and only use an exchange that you trust. Also, keep your coins in a wallet that you control.
4. Consider Using a Hardware Wallet
If you’re serious about investing in cryptocurrencies, you should consider using a hardware wallet. Hardware wallets are physical devices that store your coins offline. It makes them more secure than keeping your coins on an exchange or software wallet.
Ledger and Trezor are two of the most popular hardware wallets. They’re both well-reviewed and considered to be very secure. Hardware wallets can be a bit pricey, but they’re worth it if you’re serious about investing in crypto.
5. Fear of Losing Out
Don’t let the fear of losing out (FOMO) drive your decisions. Many people get caught up in the hype and invest in a coin because they think it’s going to go up in value. It is often a mistake. Do your research, and don’t invest in something just because everyone else is
6. Learn About Taxes
Another essential thing to do when buying your first crypto is to learn about taxes. Cryptocurrencies are subject to capital gains taxes. You will owe taxes on any profits you make when selling your crypto. Be sure to keep track of your transactions and consult with a tax professional if you have any questions.
These are six of the most important things to do when buying your first crypto. Be sure to do your research, invest what you can afford to lose, and use a reputable exchange. Also, consider using a hardware wallet and be patient. Finally, don’t forget about taxes.