We have all heard about cryptocurrencies in some way, shape or form. Whether it be over a family dinner or at work, the topic always seems to make its way into the conversation - and for good reason. Cryptocurrencies are fast becoming one of this generation's most significant investment opportunities. Cryptocurrencies have been compared to the likes of the Internet, which was one of the most important technological advances in human history. While it’s still early days, cryptocurrencies could offer similar possibilities to human advancement.  

For many people, their cryptocurrency knowledge begins and ends with Bitcoin, but there are a vast amount of cryptocurrencies available - almost too many. With over 20 000 cryptocurrencies available, it can be overwhelming when starting your cryptocurrency investment journey.

When investing in any asset class, there is no substitute for time and experience; however, this article aims to share the 7 most important Do’s and Don'ts of cryptocurrency investing. 

Don’ts  

1. Don’t believe everything you see in the media: 

Social media platforms like Twitter and Youtube are not the best sources of information when beginning your journey into crypto. Firstly, spend time understanding the core value propositions of cryptocurrency and blockchain before entering the world of social media, which is filled with people speculating on price movements and valueless crypto projects. Secondly, follow educational investment platforms and blog posts like this to keep up to date with the latest news and developments in crypto. 

2. Don't try to make a quick buck: 

Cryptocurrencies are speculative investments with the expectation of high returns. Volatility is a term used to describe the magnitude in which an asset's prices fluctuate. Cryptocurrencies are exceptionally volatile— their market prices can swing as wildly as 10% daily. Rather than investing in this asset class with the expectation of making a quick return, take a more conservative, longer-term approach. Do not think that basic investment principles don’t apply to this investment class just because it is in its infancy. Buy low and sell high. Take some profits in extreme euphoria and optimism and invest in times of peak fear and downside. 

Hot Tip: There is no such thing as ‘guaranteed returns’ - anyone advertising it should be avoided. 

3. Don’t get overconfident: 

In crypto investing, it is easy to get carried away if you make great investment returns early on. These types of returns sometimes make investors think they can’t lose, clouding their investment decisions. Clouded investment decisions could be anything from impulsive purchases of cryptocurrencies that you have never heard of to overly aggressive investments in terms of monetary value. Rather than making poor investment decisions in these times, stick to your same principles and know your limits. Use trusted companies that offer the most prominent cryptocurrencies and stable savings products to earn additional interest on your investment.

4. Don’t buy into the Hype and FOMO (fear of missing out):

There will always be a new opportunity to invest your money. Instead of worrying about a missed opportunity, stay patient, and the next one will present itself. Rather than timing the market, consider a “rand cost averaging” strategy. This strategy is to invest small amounts into the market at regular intervals, regardless of price. But doing this, you reduce the volatility of your investment and create a habit of investing.

Do’s

5. Do your research:

Before paying attention to all the different types of cryptocurrencies, learn about how money works. Download the Bitcoin whitepaper and try to understand it. Learn about the most popular coins at the moment. Choosing which platform to use to begin your journey is very important. Make sure your platform of choice is known locally, has credibility and provides an appropriate product suite for your investment portfolio. Why not start here - at the first African cryptocurrency platform to provide audited proof-of-reserve reports through Mazars. 

6. Do risk-management: 

Start small. Do not invest more than you are willing to lose. You can add to your investment portfolio as your know-how and confidence increase. Start with the big names, the most trusted names like Bitcoin— the larger the cryptocurrency's market capitalisation - this will ensure that you have a less volatile ride. If you don’t know where to start but want to get exposure, maybe begin by looking into a Top 10 cryptocurrency Bundle. 

7. Diversify: 

With over 20 000 cryptocurrencies available, you have to ask yourself, why search for the needle in the haystack when you can just buy the haystack?

One way to lower your risk when investing is to own a diversified basket of assets rather than just investing in one asset outright - the same holds for cryptocurrencies. Diversification allows you to enjoy the returns of cryptocurrencies without being at risk of one cryptocurrency substantially reducing your investable wealth. You can see multiple theme-based crypto bundles fit for any investor who wishes to diversify their portfolio into different sub-sectors of the digital asset space here.  

Where can you find a platform that helps you with all your crypto investment needs?

Introducing Altify - the easiest and most secure way to invest in crypto.

Altify prides itself on giving everyone the tools to build and grow their financial future with a focus on diversification, ease of use and transparency.

How transparent? Altify was the first African cryptocurrency platform to provide audited proof-of-reserve reports through Mazars. Giving customers the peace of mind they needed to know their cryptocurrencies were safe and accounted for. 

Altify has a suite of products, from standalone cryptocurrencies to diversified theme-based Bundles and savings vaults - It's everything you need in one secure platform.

Altify is known for its diversified theme-based Bundles. These bundles are built to take the guesswork out of investing and remove the pin risk experienced when investing in a single asset. Not only do Altify Bundles outperform Bitcoin, but they also display these enhanced returns without the performance fees of a traditional asset manager or hedge fund.

‍Get started on Altify today in just 3 simple steps.