Quick Guide to Investing Cautiously in Crypto
1. Key Mindset:
· Only invest what you are willing to lose. The risk of losing it all exists.
2. Main Strategy:
· Do DCA (Dollar Cost Averaging): Invest a fixed amount every month/week, regardless of the price. It is the simplest and least stressful way.
3. What to Invest In:
· Start with the safe: Bitcoin (BTC) and Ethereum (ETH), XLM, XRP, SOL, etc. They are the most established.
· Avoid unknown coins until you gain more experience.
4. Protect Your Money! (Most Important):
· Cold Wallet: For large amounts, use a device like Ledger or Trezor. It is the safest option.
· Don’t leave everything on the Exchange: After buying, move your cryptos to your personal wallet.
· Never, ever, share your "Seed Phrases" of 12 or 24 words. Store them in a physical and secure place.
· Enable two-factor authentication (2FA) on the exchange, using an app like Google Authenticator.
5. What to Avoid:
· FOMO: Don’t buy just because everyone else is and the price is rising.
· "Opportunities" with guaranteed profits: They are often scams.
· Trading with leverage: It is very risky and not for investors.
In summary example: Start slowly (DCA) with BTC/ETH, store them in a cold wallet, and never share your keys. Patience and security are your best strategy.
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