It has been a wild few years in the cryptocurrency industry. 

Only a few years ago, crypto was still a niche and enigmatic concept to most, yet today it is firmly in the mainstream.

During the pandemic years especially, there was a massive influx of new users into the industry. But the industry is a volatile one – look no further than 2022 for evidence of that, when a lot of pandemic gains have been given up. 

Today we are in a completely different financial landscape, with the world economy reeling, inflation high and a wealth of uncertainty present. For movie investors, therefore, it is perhaps an even more intimidating time than usual to get into cryptocurrency. 

On this note, we sat down with a few industry experts to get their thoughts on an important question, as part of our series asking expert panels for advice in crypto:

What is your biggest tip for a user just getting into crypto?

This is what they said:

My biggest tip is to not give in to FOMO. Invest in Web 3.0 projects not by just looking at their graphs and listening to a few analysts. Really go in depth to understand the problem the project is solving. Understand the utility of the token, and try to gauge if their solution will be significant to the evolution of the whole ecosystem. Since Web 3.0 is relatively young and has attracted many major players, it is bound to go through periods of extreme volatility. But projects that are building with a vision will thrive regardless of market conditions. 

The most important thing for anyone getting into crypto is to be brave – doing something new is always scary, but if you apply the right safety measures it’s usually a rewarding experience. Get curious, do some homework, ask questions, and then get involved. Just like any kind of purchase or investment, make sure you’re not using funds reserved for rent and mortgage payments. Beyond that, though, just give it a try.

As with everything, it’s really important to understand what you’re getting into with crypto. It’s possible that, in the future, use cases for crypto will become so broad that people will be interacting with blockchains without even knowing it. But right now, in the same way that you spend a lot of time and energy thinking about what phone to buy, you need to spend even more time and energy understanding crypto. It’s an emerging market that pivots on a dime, so narratives are always changing, and you need to pay attention to make sure you’re on the right track.  

If you’re new to crypto, the most important thing is to really think about what you’re doing before you do it. Some people get involved because they think they should, or because their friend told them that they could make a lot of money, but really it’s best if you care about what’s going on – or at least are excited by it beyond making a quick buck – and are willing to put in a bit of time and research to understand it. That’s not to say crypto isn’t for everyone, because it is. But it is never a waste of time to really understand where you’re putting your time, money, and energy. 

Start slow and small – don’t go jumping into alt coins or investing significant amounts of money before you get up to speed. As a complete beginner, I would suggest getting up to speed first on other asset classes like equities, before trying to wrap one’s head around crypto.

Once there, don’t believe half of what you see online. The space is packed with scams, paid promotions acting as honest advice, clickbait headlines, boasting and lots of other noise. Search for objective opinions and unbiased news that is not afraid to criticise, until you build up a good understanding.

Don’t rush into it, take your time to learn and understand the space. Start with the basics i.e. What is a blockchain, what is Ethereum, what is Bitcoin, what are NFTs, what is DeFi etc, and work your way up to doing protocol specific deep dives. 

Do deep research on the business model, the longer term potential, the quality on the people and pick reasonably priced investments that you truly believe in for the long term. Don’t buy and sell aggressively on a short term basis. It is a fool’s game and nearly always ends in tears. Never, ever invest with money you can’t afford to lose or would seriously damage your economy if you did. I don’t think it is advisable to place more than a small part of your portfolio in crypto. 

Take the time to learn – this cannot be stated enough! Fortunately, there are many resources online now in various formats (written, videos, courses, webinars) which can provide the fundamentals needed before starting to invest. Education is key and does take time, but is certainly well worth it.

Small steps. Like any new investment class, you’ll need to learn the dynamics. In crypto, it’s no different. When you dip your toe in the water, you’ll get a sense of the market volatility and your true risk appetite. Once you’ve gained some comfort with cryptocurrencies, you’ll be better able to evaluate more advanced investment considerations like leverage, futures, trading bots, and AltCoins. Start small, gain comfort and adjust. You want to get acclimatized so you can be a long-term investor.

Expect to lose money in the beginning, but aim to learn.

The worst thing that can happen is you make a lot of money immediately.

Making money fast and luckily teaches you nothing except to constantly chase luck.

During a bull market, it’s super-easy to make money.

The challenge is keeping it.

Thus, in the beginning, keep your initially trading bankroll small and go into crypto with the expectation to learn.

If you make some money, great!  Take some of the profits and save it.

But the biggest tip for a user just getting into crypto is to focus on learning in the beginning.

I know Lenin is not popular with everyone, but in my childhood, my father always quoted him saying: “Trust is good, control is better”. This means always doing your research first before you buy cryptocurrencies. Also start very small and find your footing before going in deeper. As an investor or potential “hodler” you never want to be exposed to high risk you can’t handle or afford. Therefore, you should keep educating yourself, reading about tokenomics and the technology behind a certain cryptocurrency or project. Only invest in what you understand. Try to ask questions from all angles to really be sure about your investment and the risks involved. Be aware of fear and greed and don’t buy a cryptocurrency only because it’s super cheap or popular. Behind every technology is an opportunity for a long bright future, but be sure to always keep an active eye on your holdings. And: don’t forget your crypto passwords or seed phrases!

Keep an open mind, be willing to learn, and have a long-term mindset.

There are a lot of exciting and revolutionary projects in Crypto that have the potential to make a lasting impact on the world if successful, and most of them are not well known. Keep an open mind about the possibilities and the long-term vision of the teams involved. Be willing to step out of your comfort zone and try something new, whether it is a new DeFi project or a new layer-one blockchain that you might not have heard of before.

Also, a lot of new users think they are late to Crypto. There is an old Chinese proverb, “The best time to plant a tree was twenty years ago. The second best time is now.” Satoshi mined the first Bitcoin block in 2009. The history of traditional finance dates back thousands of years. In comparison, Crypto has barely begun — so think in terms of years and decades instead of weeks and months.

Research, research, research. Always keep learning. Crypto changes fast, and it is unrelenting when it comes to separating beginners from their hard-earned money. The best way to understand the space is to get familiar with what current protocols or trends are popular and then go towards the basics from there. Learning by doing is arguably the best mantra in the space.

Learn how the Bitcoin blockchain works. That’s always a good start! The crypto space is vast and you might get lost, so I would recommend you find what interest you, be it DeFi, the metaverse, or Layer 1  blockchains, and dig deeper.

My biggest tip for users starting out in crypto is to start small. Rather than go all in from the beginning, it is wiser to dollar-cost average in slowly. This means spreading out your purchases over time so that your price paid is less affected by market timing. Another way to start small is to focus on well-established projects that you fully understand. This is safer than trying to hit a home run right away by investing in a smaller, more speculative project.

Don’t believe the hype. Fear of missing out is real, but don’t give in to it. There are plenty of folks on Twitter shouting about the next big thing, but you shouldn’t listen to the noise. Always do your own research on the project that you’re interested in to ensure it’s legitimate. And don’t stop there – research its team members, their history, and so on.

It’s impossible to time the market, so always make an investment based on your research, beliefs, and conviction. Another tip would be not to panic buy and sell.

For someone who is just entering the crypto space, they should look for value instead of quick financial gains. Investors should buy crypto from companies whose missions they identify with. Basing investments on the values and goals of a company, not what’s a ‘hot’ buy or not, will help new investors feel good about where their money is going. This approach also accounts for the long-term potential of a company, which can pay off in the future.

Crypto has a high volatility, generally with higher risk, and a higher return. However, the investment principles remain the same for both traditional and crypto assets. You should not put all your eggs in one basket. It’s always important to have a good mix of asset allocations based on your risk tolerance level.

Learn the Fundamentals. A general sentiment among those building and using web3 today is that in many years we hope for web3 to be so ubiquitous that it doesn’t “feel” like interacting with new tools in our daily use of the internet or money. That, however, isn’t the reality today. There is still so much core work and innovation happening today. To get into crypto and thrive in this space, it’s still crucial to learn the fundamentals of web3. How is it situated in the broader evolution of the internet? How have layer 1s evolved over time, and what are the core challenges they face? What types of issues can web3 actually solve, and how? Generally, how do different consensus mechanisms work? With a strong grasp of blockchain fundamentals, most of the innovation and work being done today can be contextualized, helping you make more informed decisions.

This cannot be stated strongly enough: Investing in any asset class on the cutting edge of modern technology comes with inherent risks; be sure to never invest more than you are willing to lose. We often hear about those who made big gains in the market, but what we don’t hear about as often are those who didn’t fare so well. Be sure to keep the risk to reward ratio in the forefront of your mind, and do what’s most beneficial for you depending on your own personal financial situation.

Learn as much as you can everyday to take agency in your financial future and be a sovereign individual. Reach out to others in the community and form strong knowledge networks because the space is vast and takes time to grasp. 

Join the crypto ecosystem for the technology, philosophy, and community — not to speculate and try to make money. If you’re only in it for the money, and don’t understand the underlying technology and use-cases, chances are that you’ll get rekt.

Curiosity followed by education and your own research. There are so many different projects and use cases for crypto, many learning platforms and well written content available online for free. While it can get a bit overwhelming, the trick to not getting discouraged easily is to start slowly with areas that you’re naturally drawn to. 

First, learn to filter the noise from the useful information. Educate yourself using multiple sources but be careful, just because it is on the internet doesn’t mean it is true. Trust but validate everything you stumble upon before jumping into anything within crypto. Knowledge is power and the more you know, the more informed your decisions will be and the more confident you can be in your investments. 

There’s not even a close second to this one: research is your best friend. 

Learn the minimum about what you’re getting involved in, especially when it comes to spending your money. Don’t just take financial advice for random influencers in social media without research.

Nowadays there’s no lack of good resources to get started. In fact, the opposite is sometimes the case – there’s just too much advice around, not all of it good. 

The best places to start your research are usually the ones where there’s some accountability. Crypto news outlets, like CoinJournal, Coindesk, Cointelegraph, The Defiant, and Messari, tend to have reputable information put together by journalists and with checked sources.

Regulated crypto businesses are also accountable for their content and thus have more to lose than an anonymous Youtuber if they ever mislead their audience.

When starting your learning journey, ask yourself when dealing with any source of information: what does this source stand to win by pushing an agenda? What are they not saying?

Even if you found a source that looks good, look for alternatives. Use more than one source to do your research, and don’t give away your money (or personal data) without digging further. 

Finally, when you’re ready to take the leap and purchase your first cryptocurrency, make sure you know what you’re doing. Better yet, using a reputable crypto on-ramp like Ramp makes the entire process easier and straightforward, and reduces the potential risk of mistakes.

Read Satoshi Nakamotos white paper – it is a wealth of infuriation and a great way to begin to understand blockchain and crypto.  

Read, learn and research – not everything that shines is gold.

Only invest what you can afford to lose. It’s very easy to get carried away just as if you were at the casino. If you can control your emotions, know when to stop and know your limits, you are in a good place. If you are the opposite then you are in danger of losing everything. 

Don’t expect 1000% returns, be realistic.

Most important is how to securely store your Bitcoin and cryptocurrency holdings. This should be done in cold storage using a ledger or similar hard wallet device.

Avoid letting hype and a false sense of urgency drive your decisions.Take your time, do your own research, and try to understand what you’re investing in before you buy it.   

Cryptocurrency has many nuances and is substantially different than investing in fiat-based financial instruments.  If a project was a good purchase a week ago, it will still be a good purchase a few weeks later. Fads come and go, but fundamentals do not.

Find a reputable exchange with a strong technology foundation. The digital asset class is built on technology. Be smart and take advantage of the many automated and AI tools available. Like other advanced platforms, Bybit makes AI-powered bots easily accessible for traders of all levels. Users can automate trades and put their assets to work 24/7, follow trading pros with the copy trading bot, and generate yield by staking their assets.

Keep an open mind and unlearn some of the habits you may have gained through traditional investing. In crypto, there are no middlemen, no quarterly financial reports or 2-hour long investor calls, but the wealth of free resources and knowledge transfer that takes place in the crypto community will serve as your best financial advisors. If you invest your time in researching and learning about the use cases, potential and tokenomics of digital assets, you will find projects that make sense to you and start to fortify your financial portfolio for the future. (can we insert a link back to Crypto Insights here too?)

The crypto world may seem overwhelming, but a strong supportive community, vast sources of educational materials, and the latest technology and tools, all readily available and all free, make experiencing the future far easier than traditional trading will ever be.

The post Expert panel: what is your biggest tip for a user just getting into crypto? appeared first on CoinJournal.

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