Cryptocurrency may have been the talk of the town for much of the recent years, but buying for the first time is anything but easy. If you are thinking of getting into crypto, there are some things you will need to consider, as noted by Dan Schatt of Earnity.
First, it is essential to remember that cryptocurrency is still relatively volatile. You should then ensure that you have financial safeguards in place. The pandemic has shown how crucial it is for everyone to have an emergency fund. Because of the financial hardships caused by the surrounding circumstances, some workers who had their income or livelihood affected have needed to use their savings or even take on debt. It is unwise to allocate more money than you can afford to buy cryptocurrency.
In addition, cryptocurrencies are not deemed legal tender in most cases. Because most governments do not recognize crypto as “real” currency, there are no consumer protections in place if things go wrong. Transacting with an unregulated exchange can also leave you vulnerable. If you experience theft or fraud, you have no legal recourse to retrieve what you have lost.
Buying a cryptocurrency requires learning the legitimate ones from the scams. With thousands of different types of cryptocurrencies in the market, it is not that easy to discern which are worth accessing. Due diligence and educating yourself are a must. It also helps to learn from crypto enthusiasts in authentic marketplaces, such as Earnity. Led by fintech veteran Dan Schatt, the community-based platform seeks to guide users in knowing what crypto to buy and sell.
Lastly, when purchasing cryptocurrency for the first time, it is acceptable to start small. It is easy to be swayed by crypto success stories you chance upon on the internet, but keep in mind that each individual’s crypto journey is different. Do not put in more money than you are comfortable losing; always be mindful of the risks involved.