3 vital rules for people about to enter the crypto market

TL;DR

The cryptocurrency industry can be intriguing, but enter the ecosystem with caution. A well-known analyst advised beginners to avoid launching new tokens, focus on projects with large communities and watch how assets handle major price drops. Follow these steps

The cryptocurrency sector continues to evolve, with the total share of investors gradually increasing in recent years. Statista data shows that by June 2024, the number of those with some exposure to the asset class had reached 617 million.

Some of the factors that may have attracted people to the ecosystem include recent developments such as the launch of the Bitcoin and Ethereum spot ETFs in the US, the BTC halving and of course the bull run witnessed in the first quarter, during which the main cryptocurrency reached an all-time high price of more than $73,000.

Despite offering an alternative to traditional financial methods, the ability to diversify portfolios and the potential for substantial profits, investing in crypto carries certain risks.

Popular X Crypto user Tony outlined three important rules for those new to the community. First, investors should stay away from “new releases.” Second, they should study listings that have large communities.

As the most popular and largest cryptocurrency (in terms of market cap), BTC has the largest community. It has millions of holders and its advocates see it as a store of value and even as “digital gold”.

Other digital assets that have strong communities include Ethereum (ETH), Dogecoin (DOGE), Shiba Inu (SHIB), Ripple (XRP), and more.

Third, Crypto Tony warned newbies to look at how certain tokens handle large price drops or have done so in the past.

“I hope the little tips will help in the long run for those new to the community,” added the crypto enthusiast.

Other essential guidelines

It’s worth mentioning that the cryptocurrency space is full of scammers who often target inexperienced investors in an attempt to deplete their funds. Traders are advised to stay away from schemes that offer the possibility of making massive fortunes in a short period of time and never reveal their private keys, passwords or other personal information to unsuspecting people.

Doing proper research before jumping on the bandwagon is also of utmost importance as it can prevent one from suffering devastating losses.

Last but not least, people should not invest more than they are willing to lose. Those who want to learn additional life tips, please watch our dedicated video below:

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!