6 Tips Before Buying Cryptocurrency for the First Time

“It would be nice to buy cryptocurrencies,” — such ideas may come at a different time and with a different motivation. Someone wants to use Bitcoin as a “Bank” for personal savings, others are looking for trading adventures and fast money, while some crypto enthusiasts are interested in “completely new experience” and the opportunity to have a piece of future, albeit it is digital.

Especially for last-named persons — seekers, brave, but still inexperienced, we have prepared a list of 6 tips on what to do before buying cryptocurrency, what to pay attention to in the buying process, and what to do with the coins after. Let’s begin.

1. Take Care of Your Wallet

It is trivial, but it is worth starting with: the purchased cryptocurrency needs to be stored somewhere. Ways and the options are endless, but first, you need to know about two types: light and heavy purses.

If you are going to buy a “souvenir” amount of currency, the safety of which you will not have nightmares about, the light purse, available directly from your phone, is a great option. It is best to choose a proven solution with a good rating and reviews, just like FoPay. Important — before making the final choice we advise you to make sure that the wallet allows you to transfer the account\wallet to another device, and you are satisfied with the rate of inputting\outputting the currency.

If you have a significant amount on hand, that has been accumulated over several years and want to transfer it to digital coins, here we advise you to spend time reading the instructions and allocate space on your hard drive for the installation of a full (heavy) wallet for the selected cryptocurrency. This is the most secure option, as in fact, you download all your coins to your PC, where they are stored and regularly communicate with the server for verification.

Here you can find a piece of advice how to pick crypto wallet properly.

And we strongly advise you not to keep the coins on the exchanges, if that’s where you’re going to buy it. Crypto-exchanges are most vulnerable to hacker attacks. And on the top of the most unreliable places for your coins, any exchange would take the first place.

2. Do not Buy the Cryptocurrency at the Point of “Take-Off”

Hearing from a friend or your favorite crypto Magazine that bitcoin has set a new growth record, do not hurry to register a wallet and look for an exchange office. Any cryptocurrency after a sharp rise either going through a correction or a strong enough fall. But in any case, the chance that you will have time to run into a rushing train is always less than the chance that the idea will end in failure and disappointment. It is much more reasonable to wait for the moment of decline in your chosen currency and buy it at the lowest price.

3. Choose a Purchase Method and Make Sure it is Reliable

Even though the fact that the choice is still quite wide, it has become increasingly difficult to buy bitcoin recently, because the states are actively “taking care” that you do not get involved with malicious cryptocurrencies. But as always, who wants to, will always find how.

For you, there are still available exchanges — Bitfinex, WEX, (the same BTC-e), YoBit and others. If you are going to trade currency, the exchange suits you the most. Choose the platform that supports convenient payment methods, and after the purchase, you can choose any other for trading, at least the same Hotbit (one of the most popular in China at the moment).

If you just want to convert the accumulated fiat currency into cryptocurrency, we can advise you to use the LocalBitcoins website. Here you can choose a seller geographically close to you and arrange a personal meeting. This option provides safety if you are careful and cautious. The main reason why this service is so popular is the ability to pay in any way you have agreed, even in cash. And as a result, despite the commission, it is often still more profitable than throwing money to third-party payment systems, especially foreign.

There is an option to buy currency, finding sellers on thematic forums, without commissions, and at a good rate, but in this case, you take the risk on your own. If you decide on such an option, it is strongly recommended to make sure that the seller has positive reviews, check the authenticity of these reviews and not to buy large sums in case not to lose all the accumulated finances. But still, we do not advise to do so.

4. Buy Bitcoins, Hide, and Calm Down

This is a very important piece of advice that we recommend you to listen to. Often, after spending large sums of money to buy cryptocurrency beginner and excited owner of the digital hoarding wealth pours adrenaline into committing rash acts. The slightest changes in the rate in the direction of recession terrify all newly-minted cryptocurrency investors, which is bad for their nerves and a rational understanding of the situation. Bitcoin has repeatedly experienced major falls — with the first major hacker robberies, with the ban on ICO in China and even with the negative mention of the coin by any serious investor. But it took not even months, and often weeks and the rate has stabilized and we saw growth again. Therefore, our advice to you is just to buy bitcoins (and FOINs) and do nothing else, at least for some time.

By the way, you can get extra benefits simply by holding coins. How? Read in our article.

5. Trade What You Want but Keep in Bitcoin (and FOIN)

No one can say for sure what will happen to Bitcoin in a year, five years or a quarter of a century. However, only the Bitcoin (cryptocurrency) has the highest credibility today. Dubious rumors are pushing the new traders to risky actions for the sale of Bitcoin and the purchase of other coins with the hope of a sharp enrichment, which does not always end this way. If you are in this category recently, we strongly recommend that you keep most of the investment (at least 50%) in it.

6. And Finally, Do not Sell the House, Car, and Kidneys to Buy Cryptocurrency

Now and then you can come across with the great stories of desperate people who had sold everything and bought cryptocurrency, which later made them millionaires. But these stories have a downside.

Firstly, today it is not 2011 and buying a thousand bitcoins is not so easy, and no one knows whether at least one of the altcoins will repeat the feat of Bitcoin. In other words, you will likely be able to double or triple your capital, but it will hardly happen quickly and it is unlikely that the transformation of 10 thousand dollars into 30 thousand is worth such a risk, because everything can happen differently.

Secondly, do not let yourself be fooled by a single success story, because each of them is worth a hundred failures and failures, largely due to ignorance, negligence, and inexperience. Are you confident enough that the accumulated capital is worth the possible risk, and your experience is enough to predict the future and protect yourself from possible unforeseen situations?

Remember, you can hit the jackpot not only gambling “roulette”, but also having a cold mind, education and awareness — read our stories, be aware of all the important events, gain experience on other people’s mistakes and make the right choice.

And if you still doubt whether crypto is a secure payment method, you can change your mind by reading this.