TL;DR
- The cryptocurrency industry may be intriguing, but one should enter the ecosystem with caution.
- A well-known analyst advised beginners to avoid new token launches, focus on projects with large communities, and observe how assets handle significant price drops.
Follow These Steps
The cryptocurrency sector keeps evolving, with the total share of investors gradually increasing in the past years. Statista’s data shows that as of June 2024, the number of those having some exposure to the asset class had reached 617 million.
Some of the factors that may have attracted people into the ecosystem include recent developments such as the launch of spot Bitcoin and Ethereum ETFs in the USA, the BTC halving, and, of course, the bull run witnessed in Q1, during which the primary cryptocurrency reached an all-time high price of over $73,000.
Despite offering an alternative to traditional financial methods, the chance to diversify portfolios, and the potential for substantial profits, investing in crypto comes with certain risks.
The popular X user Crypto Tony outlined three important rules for those who are new to the community. First, investors should stay away from “new launches.” Second, they must study tokens that have big communities.
As the most popular and biggest (in terms of market capitalization) cryptocurrency, BTC has the largest community. It has millions of holders, and its proponents view it as a store of value and even as “digital gold.”
Other digital assets having solid communities include Ethereum (ETH), Dogecoin (DOGE), Shiba Inu (SHIB), Ripple (XRP), and more.
Third, Crypto Tony warned newbies to observe how certain tokens handle big price drops or how they have done so in the past.
“Small tips I hope will help in the long run for those newer to the community,” the crypto enthusiast added.
Other Essential Guidance
It is worth mentioning that the cryptocurrency space is rife with scammers who often target inexperienced investors in an attempt to drain their funds. Traders are advised to stay away from schemes that offer the chance of massive fortunes in a short period of time and never reveal their private keys, passwords, or other personal information to dubious individuals.
Conducting proper research before jumping on the bandwagon is also of utmost importance since it can prevent one from suffering devastating losses.
Last but not least, people should invest no more than what they are ready to lose. Those willing to learn additional vital tips, please take a look at our dedicated video below:
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