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Questions To Ask Yourself Before Buying A Crypto

Questions To Ask Yourself Before Buying A Crypto

There are many reasons why people are attracted to investing in cryptocurrencies. 

Firstly, there is the potential to make lucrative returns, more so than with stocks.  

Secondly, cryptos provide a new asset to invest in, allowing investors to diversify their portfolios and compound interest. 

Thirdly, cryptos feature in many applications, making them an investment you can actually use – i.e. to pay for services and products.  

BUT… investing in cryptos is high risk because of market volatility, although the trick is to invest wisely and with caution. 

Add it all together and you have a fascinating vehicle for adding wealth to your life. 

In these dire days of financial pressures, many people are looking for ways to make extra money and invest more for the future, for themselves and their families. 

However, before leaping in and joining the crypto gold rush, here are some questions you must ask yourself.

1. What Exactly Are Cryptos And What Dictates Their Value?

It is important to understand what cryptos are at a basic level – i.e. they exist solely in digital form. You cannot hold crypto in your hand. 

Cryptos get their value differently from other investment assets, such as property or stocks. 

The value of a property is determined by its location, specific neighbourhood, or how luxurious it is. 

With stocks, their value is linked to how well a company does or is predicted to do. 

These are market forces. 

Cryptos are different because they depend purely on whether people are buying cryptos – or not. 

The value rises if many people buy cryptos. Alternatively, when people cease buying cryptos, the value falls.

2. Don’t Forget Blockchain!

It is important to remember that when we talk about cryptos, we are also including the Blockchain.  

However, blockchains are not cryptos. They are systems/networks where cryptos exist and move about. 

Together, they form what is known as the crypto ecosystem.  

Blockchains, therefore, are also assets you can invest in, giving you another avenue for potential returns. 

Some analysts see blockchain as the real jewel in the eco-system as it will continue to change the way that we do things as our world becomes increasingly more reliant on digital and Smart technology.  

So that is interesting to consider. 

There are also Exchange-Traded Funds (ETFs) and Non-Fungible Tokens (NFTs). Both are part of the ecosystem and provide further investment opportunities. 

Understanding these first two questions will give you a good grounding, but now we come to some other vital questions to ask yourself.

3. Are You Prepared To Accept The Risk?

Yes, investing in cryptos provides the chance to generate new income – but as mentioned earlier, it is riskier than investing in stocks and even property. 

You must understand your chances of getting in with the next Bitcoin are not guaranteed. You would be extremely fortunate if that did happen.  

But who knows, maybe you will? 

This is what makes investing in cryptos exciting and fun for some. But that’s because they are approaching it the right way- i.e. not throwing all their investment funds into one hopeful project. 

Certainly invest – but do it cautiously, start small. If you do that, then accepting the risk is easier, and you won’t lose sleep over it!

4. The Process Behind Buying Cryptos

If you do decide to buy cryptos, then before doing so you will need to give some thought to how to do that exactly. 

You can’t simply walk into a normal bank and do it. 

Spending time researching the processes is a good idea because, as you know, the internet is a dangerous scammer’s playground. 

You must make sure you know what you are being asked to do and what it involves. 

For starters, you will need to open a trading account. You cannot purchase cryptos without one. 

Then there’s the place where you buy the cryptos. These are called exchanges.  

The thing to be wary of is that they may be unregulated. It is best to stick to the more established ones, such as Blockchain.com.  

Having said that, be prepared for the unexpected. Some exchanges have suffered tech issues in recent years which has caused distress for investors. 

It is down to you to learn about cryptocurrencies, so you can buy cryptos with confidence. 

Also, look into where you will store your cryptos. Not only do you need an account, you need a “wallet.” There are two types – a hot wallet and a cold wallet. 

A hot wallet is stored online. A cold wallet is kept on a physical device, such as a flash drive. 

You need to consider the different security threats that go with each – i.e. there is always the threat of online hacking. You might lose your flash drive, however careful you think you are. 

The next question is the obvious one – what cryptos should you buy? 

But we’re going to make that a blog for another day, as it is a question with multiple answers! 

Instead, a good question to ask right here is – once you have bought your cryptos, when would you SELL them to make a profit?

5. Knowing When To Sell

This may come as a surprise, but many people who decide to become an investor and traders do not give a thought to the selling side of it before they buy. 

It is an afterthought, yet knowing the strategies for selling is equally as important as knowing when to buy crypto.  

It is arguably more difficult to know when to sell your cryptos than it is with stocks. 

That’s because of the extreme volatility. The crypto market never sleeps! 

So before buying, learn crypto trading to get a grasp of all the strategies and processes you need to master and succeed in the crypto market. 


Investing in cryptos is high-risk, but it doesn’t have to be. It’s all about having the right approach to buying and selling cryptos.  

With the right education and trading investment course, you can easily master the skills and reap the rewards of this revolutionary investment asset. 

Create Indestructible Wealth For You And Your Family So That You Finally Have Financial Security ... Forever!

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