The previous ten years have seen a sharp rise in the use of cryptocurrencies, with Bitcoin’s value rising by 100% to 200% a year. This has made cryptocurrencies widely accepted.

The cryptocurrency community expands in proportion to the number of enthusiasts that buy bitcoin or publicise the benefits of utilising bitcoin for transactions. But because cryptocurrencies are always volatile, it’s hard to know whether to acquire Bitcoin or any other cryptocurrency.

This article dives into four key considerations to guide your cryptocurrency buying decisions.

1. Be Ready Before You Buy

While there is no perfect moment to enter the cryptocurrency market, being ready is crucial. Recognise that investing in cryptocurrencies carries risks just like any other.

The price of cryptocurrencies fluctuates a lot. The current market’s exponential climb, which has drawn investors and produced enormous profits, could be followed in 48 hours by a sharp decline in price, which would result in large losses.

Therefore, only make investments that you can afford to lose. Remember that while there is a chance that the return will be greater with increased risk, the opposite may also be true.

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2. Choose Your Trading Strategy

Since there are no established guidelines for trading cryptocurrencies, each trader creates their own buying and selling plans depending on a variety of determining factors.

The well-known “buy low, sell high” tactic makes money off of the volatility of cryptocurrencies. This calls for careful observation of market pricing.

Two main techniques exist within this strategy:

• Buying and selling is often part of day trading, which aims to make tiny returns from slight price changes.
• The second strategy is to purchase it at a discount and hold it with the intention of selling it later on for a much greater price. Investing in cryptocurrency is a potentially risky approach because there is no certainty that prices will rise in the future.

3. Acquire knowledge of cryptocurrency

One of the biggest risks for cryptocurrency traders is ignorance. Many people ignore the abundance of knowledge available online and instead rely only on mentors or social media.

There are a lot of publications on the internet that describe cryptocurrencies and how they operate. For readers of various skill levels, sites such as Cryptocurrency News Kenya offer simple articles about blockchain technology, cryptocurrencies, and financial literacy. The most important thing you can do as a beginner investor in cryptocurrencies is to educate yourself.

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4. Selecting a Secure Cryptocurrency Exchange

With so many alternatives for purchasing cryptocurrencies, pick a reliable exchange site that puts your money’s security first.User safety is guaranteed by Yellow Card, a reputable pan-African cryptocurrency exchange platform.

It offers consumers the opportunity to purchase and sell Bitcoin, Ethereum, and USDT at competitive prices and operates in 16 African nations. By allowing unlimited account deposits, Yellow Card also removes the inconvenience associated with receiving money from loved ones who live overseas.