Cryptocurrency is an appealing investment for many people who seek to profit in their portfolios, but despite its opportunities, it also comes with risks that you must carefully weigh before making decisions. Simply put, navigating the crypto world is a wild ride, and it can quickly get confusing, given the high amount of information and the media hype. And, if you’re a crypto newbie, you may get stuck as you try to figure out how you can succeed with your investments.
While it may seem like this problem can be solved with a quick Internet search, the truth is that financial advice you find online can be misleading, causing you to make decisions that don’t align with your financial situation or objectives. Besides, there is also the coin hype, which can lead to FOMO (again, the outcome can’t be a positive one if an investor lets fear take over). So, what is the solution in such cases? We will answer this question below, so keep reading to find out how you can approach crypto investments effectively to maximize your chance for profit.
Use crypto education platforms
The crypto landscape can be challenging to understand and navigate, so you need to take the time to grasp its fundamentals before you buy your first coin. The good news is that crypto exchanges also serve as education platforms, as they provide how-to guides, a comprehensive crypto glossary, trading tutorials, and other types of articles that allow you to get better at crypto investing. They even provide useful knowledge on NFTs, blockchain, and the security of your coins.
However, it’s essential to choose a reliable crypto exchange when educating yourself on digital assets, such as Binance. Since professionals create these materials, you can get peace of mind knowing that you are on the right track as you seek to earn profits from cryptocurrencies.
Consult a crypto advisor
One of the best things you can do to ensure a smooth crypto investing journey is to seek the help of an advisor who can offer you guidance based on your own circumstances, such as your time horizon, goals, and risk tolerance. An expert is informed about crypto regulations and laws and can help you develop a low-risk crypto portfolio and monitor your trading activities effectively.
When choosing a crypto advisor, make sure that you look for professional certifications, as this allows you to know that they have the right skills to help you. Ask them about their credentials and how they would meet your needs. Look for a financial advisor who is also an expert in cryptocurrency security (namely, following the best practices and understanding hardware wallets, cold storage, 2FA, and so on). This is paramount because digital assets are susceptible to malicious activity, and you want to keep your crypto funds secure. When searching for a crypto advisor to work with, you want to ensure that they give you clarity on fee structures, as this will help you prevent future disputes and ensure that your interests align with theirs. Some crypto advisors require traditional fees, others hourly fees, and some charge a mixture of fees, so don’t hesitate to ask for transparency from your crypto advisor to understand the costs.
Follow crypto influencers
Crypto influencers are an excellent resource to keep up to date with the latest crypto news and learn as much as you can about this complicated financial topic. Most popular influencers have an account on platforms like Twitter, YouTube, etc, making their content accessible to anyone who seeks advice on cryptocurrency. Unfortunately, not all influencers are reliable, so it’s essential to be careful when deciding who you will follow on social media.
Some of the most trustworthy influencers are Vitalik Buterin ( Ethereum’s co-founder, who not only shares the latest updates about Ethereum and blockchain but also provides personal insights on different topics related to crypto), Dr Gavin Wood, programmer and data scientist, who has written many books about crypto and blockchain, and Andreas Antonopoulos, a Bitcoin advocate podcaster, tech entrepreneur, and author, who runs a blockchain education platform, and talks about the global adoption of crypto and other relevant aspects.
Keep in mind that influencers aren’t meant to replace financial advice that you can get from working with a professional advisor. The content they provide should only be used for informational purposes and can’t necessarily be applied to your unique circumstances.
What NOT to do when seeking crypto advice
Everyone can easily give crypto advice online, but that doesn’t mean you should trust them. Unfortunately, you can’t not if they aren’t there only to take advantage of you and steal your funds. And even if this doesn’t happen, it’s still not a good idea to listen to the advice of people who aren’t professionals because everyone has a unique experience when navigating the crypto world. Besides, life circumstances are different for everyone – someone giving you advice may have a different risk tolerance than you, or they could be in a better financial situation, and so on.
While it may feel tempting to follow advice from friends or family, keep in mind that they aren’t experts, and they won’t likely help you make the right decision – in fact, they could negatively impact your crypto investments. Also, people often seek investing advice on online communities like Reddit and Quora, but we don’t recommend doing it – those are only forums for discussion, where others share their personal experiences, but that doesn’t mean they should be used as a valued source where you can get financial advice. The consequences of taking other people’s advice could be devastating, as you could suffer massive losses, so be sure only to use these platforms to share opinions and not as a replacement for professional guidance on your crypto investments.
Last words
Navigating the crypto landscape can be challenging, especially when you’ve just got into this industry, and all the information looks too complicated to be understood. The good news is that there are different ways to make your crypto investing journey a lot easier, such as using education platforms, following crypto influencers on social media, or seeking help from a professional crypto advisor. The last option is often the best because an expert will help you choose suitable investments, offer financial planning advice, and help you manage crypto taxes successfully.
