The influx of new retail traders and long-term investors in the crypto industry created a very peculiar situation where thousands of newcomers do not know much about cryptocurrencies, blcockhain, and decentralized finance. However, it is impossible to deny that the future of investment is in digital assets and cryptocurrencies. Even nations that were initially opposed to the idea of adopting crypto are toying with the idea of issuing their own Central Bank Digital Currencies (CBDC).

There is a surge of interest from various participants of digital commerce in using cryptocurrency payments. Huge corporations like Disney, Nike, and Starbucks are making their moves in this domain. The crypto market is currently experiencing a contraction which is a good moment to enter the market with a long-term position.

However, you should be careful and contemplate risks when engaging with the crypto market. We decided to give you three valuable tips if you want to start online trading or using crypto.

Diversify your crypto portfolio

The rule of never putting your eggs into one basket works extremely well in the crypto industry wher hundreds of DeFi platforms are competing for your attention. The whole industry is still young considering how many promising DeFi projects are launched each year.

The flagship of the whole domain is Bitcoin. It is a behemoth of the industry that has been performing quite well despite the global recession. However, it is not the only token that should be on your radar. The industry also has Ethereum, a blockchain network focused on utility and deployment of decentralized apps. There are also competitors to both these coins.

If you want to get into this sphere, we highly recommend you check out Cardano (ADA), Algorand (ALGO), Tether USD (UDT), and Binance USD (BUSD). These are tokens that are widely used in the crypto industry or have potential for growth. Don’t focus on buying only Bitcoin and Ethereum. There are many other alternative coins that can surge in popularity.

Trade on reliable trading platforms

Cryptocurrencies are available for trading in all corners of the world. In fact, some countries in South America are seeing massive increases of transactions in BTC and ETH. For example, Peruvians are preferring crypto to their fiat currency. It seems that many people are considering switching to crypto to simply hedge against inflation.

It is good crypto news for hundreds of crypto exchanges operating in all parts of the globe, but it is something that should concern you immediately. The market is overflown with offer meaning that you will be able to find a crypto exchange anywhere. Choosing the right one is often a crucial factor affecting your profitability in the future.

Here are some aspects that a CEX platform must excel in to be considered reliable and trustworthy:

  • A good track record without any previous security breaches;
  • A reputation of a dependable company that reacts to issues with transparency and honesty;
  • Lots of satisfied clients and a plethora of positive testimonials from former and current clients;
  • Versatility of the platform in terms of product diversity and web infrastructure.

There are many platforms that fit these criteria nicely. You can work with a wide range of crypto exchanges, but make sure that they are trustworthy!

Automate purchasing efforts

Since the market is so volatile and chaotic, you will often be lagging behind the competition. Automation allows you to continue purchasing assets even when you are asleep. It is a good idea if you want to use something like DCA buying because bots can look for optimal moments to buy 24/7 without ever pausing to take a break.

Automation became cheap and affordable. The high entry cost was the only barrier that prevented retail traders from using these powerful tools. Only institutions were able to afford them. Today, many automation vendors and even crypto exchanges themselves offer such products at a very low price. If you want to be efficient with your investments, automation is a great solution!

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