Five Simple Hacks for First Time Crypto Buyers
It’s a new year and a new you, and maybe this year you’ve made a resolution to try something new! Could that new thing be dabbling in the world of crypto? The cryptosphere can be overwhelming if you don’t know where to start. Luckily, we’ve put together five tips for first time crypto buyers to help you start your journey.
Tip 1: Only invest what you can afford to lose
As with all investing, crypto or otherwise, there’s always some element of risk, so best not remortgage your house and put it all into crypto. Particularly when you’re new to crypto, it can take some trial and error to see what tokens and methods work best for you.
Certain tokens are famously volatile, but not all tokens fluctuate so much (see stablecoins). That said, it’s always best to start out small and you can always invest larger amounts of money when you get more confident.
Tip 2: Diversify your portfolio with multiple assets
Ever heard the phrase ‘don’t put all your eggs in one basket’? Well, the same applies to buying crypto! Statista estimates that there are now around 8,000 different cryptocurrencies in existence, so there’s no excuse to not vary your crypto holdings.
Some long-time crypto enthusiasts are die-hard fans of one particular token, but when you’re starting out it’s a great opportunity to try out some different tokens and find out which ones float your boat.
Tip 3: Buy fractions, not whole tokens
With the price of tokens such as Bitcoin and Ether reaching new all-time highs in the last year, it probably isn’t a good idea for your first crypto purchase to be one whole Bitcoin. But fear not, because the crypto community already has a solution for this!
You can buy fractions of tokens, which means you can HODL and try them out without having to worry about shelling out a lot of money to have a whole token.
Tip 4: Research information from multiple sources
When it comes to any kind of investment, research is always important. Thanks to the internet there are endless sources at your disposal, but the trick is to make sure you’re getting balanced information. Be sure to mix up your sources: read news articles, watch content on Youtube and listen to podcasts. You could even join dedicated community forums with other crypto enthusiasts. When it comes to researching specific tokens, it’s also worth checking out the whitepaper.
Just make sure you’re not getting all your information from just one place or person.
Tip 5: Buy, exchange or HODL with Wirex
Ok, maybe we’re biased. Wirex was founded with a mission to make crypto open to all, which means we’re passionate about offering the best features and products to everyone, regardless of where they are in their crypto journey. With Wirex you can track crypto prices within the app, as well as have access to exclusive OTC rates for cryptocurrency exchanges. What’s more, if you have a Wirex card you can earn up to 2% in Cryptoback™ rewards – it’s a great starting point if you’re new to crypto!