Cryptocurrency can be exciting—and intimidating. With headlines swinging from massive gains to sudden losses, it’s easy to get caught up in the hype or fear. If you’re new to crypto investing, the key is to move forward with caution, clarity, and a solid strategy.
Here are some tips to help you get started on the right foot.
1. Start with Education, Not FOMO
Before you buy your first coin or token, take time to understand:
- What cryptocurrency actually is
- How blockchain technology works
- The difference between coins (like Bitcoin) and tokens (like those used in DeFi apps)
Don’t let fear of missing out push you into risky decisions.
2. Stick with Well-Known Coins First
When starting out, it’s best to focus on more established cryptocurrencies like:
- Bitcoin (BTC)
- Ethereum (ETH)
These tend to be more stable and widely used than smaller, more volatile coins.
3. Use a Reputable Exchange
Pick a trusted platform to buy and hold your crypto. Look for:
- Strong security features (2FA, cold storage)
- Transparent fees
- Good customer support
Examples include Coinbase, Kraken, and Gemini. Do your research before you fund an account.
4. Don’t Invest More Than You Can Lose
Cryptocurrency markets are highly volatile. Only invest money you’re truly willing to part with—and don’t dip into emergency savings, rent money, or retirement funds to speculate.
5. Secure Your Assets
Use best practices to protect your crypto:
- Store long-term holdings in a hardware wallet (cold storage)
- Use strong, unique passwords
- Enable two-factor authentication on all accounts
If you lose your private keys or fall victim to a scam, there’s no “forgot password” button.
6. Think Long-Term, Not Quick Profit
Trying to time the market is a losing game for most investors. If you believe in the technology and the long-term potential, focus on consistent, small investments and hold through the ups and downs.
Investing in Crypto? Don’t Go It Alone
At Diligent Financial Strategies, we help clients evaluate crypto as part of a broader, balanced financial plan. Whether it’s understanding taxes, managing risk, or deciding how much to allocate—we’re here to help you invest wisely.