10 Tips Every Cryptocurrency Investor Must Know

By Lafond Wanda

January 10, 2024   •   Fact checked by Dumb Little Man

10 Tips Every Cryptocurrency Investor Must Know

Crypto trading and investing are not easy things. In fact, they are as far from being easy as you can imagine. The crypto market is still new and quite unstable, but it’s still possible to become an expert in crypto and start earning from it. The more you educate yourself and the more practice and experience you get, the more of a crypto professional you will become.
Indeed, just like with any other kind of trading and investing, crypto requires time and effort to master. But while this topic is very broad and detailed, there are certain techniques any cryptocurrency investor will benefit from.

Here are the ten tips every cryptocurrency investor must know

Here are the ten tips every cryptocurrency investor must know
Photo: btcmanager

1. Know What You Are Doing

It goes without saying that the crypto world is unpredictable, but even so, you still can’t just let things happen and rely on luck. A good cryptocurrency investor is one who knows what they are doing. You need to have some kind of plan you can follow consistently or an over-arching strategy that you will implement throughout all of your activities.

Obviously, you won’t be able to predict everything that happens on the crypto market, but you should still have a plan for most situations you can think of. While you do need a concrete strategy to follow, you should still remember to be flexible. If you can’t adapt to situations that you weren’t prepared for, you won’t be able to succeed as a cryptocurrency investor or trader.

Once again, the crypto world is highly unstable, precisely due to how new this market is. But this means that when you do become a major player, you might even be able to influence some aspects of the market. All of this is impossible unless you have a plan or strategy to guide you in what you are doing.

2. Continue Diversifying

Diversification is by far one of the most important techniques you should prioritize. It’s a good idea to include this as a part of your cryptocurrency investing plan so that you can see how it fits with all your other activities.

Diversification pretty much means that you work with a variety of cryptocurrencies instead of investing all of your money into a single one. By spreading out your money among different cryptocurrencies, you decrease the risk of losing major sums on something you heavily relied on.

In fact, beginners tend to make this mistake quite often. They look for something they like and then only stick to it. Considering how unstable the market is, this is one of the biggest mistakes you can ever make that could cost you hundreds or even thousands in investments. Even relying on such big cryptocurrencies as Bitcoin can be dangerous. Instead, do your research and find other cryptocurrencies you like, both from altcoins and from other industries.


3. Utilize Automation

It may surprise some cryptocurrency investors and traders, but automation can actually be of great value to you. By utilizing automation, you can make the whole investing process much simpler. You will even get more time for yourself that you can then spend on doing further research into crypto, networking to connect with other traders and investors, and so on.

In other words, it’s the perfect solution for anyone who wants to relax a little after stressing too much about crypto. The most obvious way to utilize automation is by automating your purchases. Through such automation, you can take advantage of cost averaging. Many platforms allow you to set up recurring buys that are executed when a currency of your choice reaches a particular price point.

You can also set up recurring buys by telling the system to purchase a particular amount of a particular currency every month. The amount is counted in non-crypto currencies (e.g. dollars), so you will get a smaller amount of cryptocurrencies when the price is high and a bigger amount when the price is low.


4. Use Different Credentials for Crypto Trading

Security is a major topic when it comes to crypto trading and investing. That’s why it is absolutely essential that you pay enough time to set up separate credentials for your crypto trading so that you protect yourself from possible security issues.

The first thing you should set up is a separate email account for all your crypto-related activities. Choose a major platform like Gmail which is known for being safe and secure. Moreover, go the extra mile and set up two-factor authentication or an alternative to further protect your email account.
At the same time, you should think about a separate username and password to use for your crypto activities. Just like setting up a separate email account, using a different username and password for your crypto investing and trading will add another layer of security to all of your processes. It’s a small step, but it can make a big difference.

5. Never Give In to FOMO

If you’ve never heard of FOMO, it stands for Fear of Missing Out. This is something you can experience when there is a tempting offer you are afraid to pass on because you feel that you will lose something valuable by doing so. If you give in to FOMO, you might start making stupid decisions and eventually lose money.

FOMO is by far one of the biggest reasons why so many crypto traders and investors fail, so it is crucial for you to stay alert in times when you start feeling if. Especially beginners can be susceptible and may give in to FOMO when they don’t have enough knowledge or experience to make better decisions.

One way you can make a mistake when experiencing FOMO is by buying cryptocurrencies just because the price is low. Just because a cryptocurrency’s price is low, it doesn’t mean that buying it now is a good idea. Sometimes low prices could be the result of consistently falling prices (which means you won’t be able to sell the cryptocurrency and profit from it in the future).

The same goes for selling cryptocurrencies when prices are high. If the price rose just a bit, you shouldn’t immediately rush to sell it. Instead, consider all factors in the situation and maybe wait a bit until it rises more.

6. Opt for Desktop Over Mobile

While creating a separate email account and using different usernames and passwords is a great way to improve security, there are still other things you can do to further enhance it. For instance, opting to perform your crypto transactions on a desktop instead of mobile is a great way to ensure more security.

While trading on mobile usually means you can perform your transactions on the go anytime and anyplace, choosing a desktop will be more secure because it’s more difficult to compromise a desktop computer than it is a mobile device like a smartphone.

Moreover, never trade while connected to public Wi-Fi networks. Oftentimes, such networks are insecure and are easier for hackers to take advantage of. By using your desktop computer with your home network, you won’t be tempted to connect to a public Wi-Fi network with the help of your mobile.

The downside of only relying on desktop devices is that you can’t perform a transaction when you aren’t home. This means that you might miss out on some good opportunities when prices change. However, it will still be better than being taken advantage of and potentially losing your crypto accounts and assets completely.

7. Use Hot and Cold Wallets Wisely

Hot and cold wallets are great for storing cryptocurrencies. Cold wallets are offline ones while hot wallets are online. Both hot and cold wallets can be useful to you if you know how to use them correctly.

For instance, hot wallets are usually more appropriate for beginners because they can be easily accessed. That being said, this accessibility also means that hot wallets are less secure because it’s easier to hack into them or get advantage of them with the help of malicious software.

Cold wallets, on the other hand, can be the perfect choice for those who want to have more security. Both beginners and professionals can benefit from using them. While it’s harder to hack into them, cold wallets should still be prepared carefully to be secure.

Cold wallets are ideal for long-term storage, but you can still use hot wallets to store small amounts of cryptocurrencies in them. Just don’t store too much in your hot (online) wallets so that if you do get hacked, you won’t lose a lot.

8. Don’t Get Surprised Easily

As mentioned earlier, having a plan for all your crypto trading and investing is important to become successful at it. Though you may have a plan, you still have to be flexible and adapt to potential unexpected situations.

But having a plan and being flexible is just part of the job. Another thing you should keep in mind is that you should never be surprised easily. A good investor or trader is the one who knows enough about their work to keep a clear head even in times of great crisis or great success.

Of course, you might be a beginner, and possessing so much knowledge and experience is simply impossible for you. However, it’s a good idea to start making it a habit for yourself to always stay calm and reasonable. By doing this, you will be able to start making decisions only after considering all the information you possess.

Reading the news and keeping an eye out for the latest trends can also help you get a better idea of what is going on on the crypto market. Always strive to educate yourself as much as you can and find experts you can rely on during times of uncertainty.

9. Be Open to Different Perspectives

Keeping a level head is perhaps just as important as being open to different perspectives. The crypto world is constantly changing and that’s exactly why sticking to a particular view on crypto trading and investing is probably the worst thing you can do.

You should always consider what different experts are saying and try to take into account vastly differing opinions. Of course, this will make things complicated, but if you find a way to balance things out, you will become a crypto trading expert in your own right.

Moreover, you should also be open to hearing outside perspectives from people who aren’t involved in crypto trading or investing. There will always be people who say nasty things about cryptocurrencies and blockchain. Spending your time being angry at them will do you no good – but listening to the valid concerns they may have is still necessary.

10. Keep on Learning and Experimenting

Last but not least to become a good cryptocurrency trader or investor, you should keep on learning and experimenting. No matter how successful you are or how many times you fail, it’s still necessary to continue learning from your mistakes and trying new things.

Find podcasts, books, and blogs on crypto that you enjoy. Try out obscure currencies that could even potentially bring you a fortune. Connect with other traders and investors to grow your network and even establish yourself as an authority in the field. And, of course, know everything you can about your own assets before you start investing or trading.


To sum up, successful crypto trading and investing require you to have extensive knowledge about the world of crypto and enough experience to make level-headed decisions consistently. That being said, even beginners can succeed if they follow the tips above and use their assets smartly.

Lafond Wanda

Lafond Wanda is an expert writer who specializes in creating various training and professional upgrade courses, materials, manuals, and reviews for ratings of websites. She also provides consultations and creates expert writing materials for the best paper writing website. She likes traveling and speaks German and French.

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