Let’s assume that you are now convinced to enter the world of cryptocurrency. You are ready to invest in the very first crypto of your choice. But how will you buy it? What are your expectations? Will you hold your cryptocurrencies for a long time? In this blog post, the Swipe team shares five things you need to consider before buying your first crypto.
**1.** **Your Funds**
Unless using to make payment transactions, convert only the funds that you are willing to invest or store in cryptocurrency. Cryptocurrencies, in general, are decentralized, you are responsible for your transactions and funds. Weigh your options and do your own research (DYOR) to manage your funds successfully.
**2.** **Your Risk Tolerance**
“Only invest in what you can afford to lose.” This is the common advice that potential or new investors often get upon entering the field. Cryptocurrencies are known for high volatility. If you are not tolerant of taking such risks, then better think twice about buying cryptocurrencies. There is no easy way to avoid the ever-fluctuating prices of cryptocurrency. If already convinced to purchase cryptocurrencies, it is better to diversify your crypto assets to increase the possibility of earning while decreasing the possibility of losing big at the same time.
**3.** **Kind of cryptocurrency to buy**
Again DYOR (Do Your Own Research). Study which type of cryptocurrencies are more likely to help achieve your goals and succeed in the future. There are thousands of cryptocurrencies available in the market today. Each of these has different types of use and functions. Also, don’t just listen to the opinions of other people. Though their opinions might be valid, it is safe to research and select which cryptocurrencies will you add to your portfolio.
**4.** **Where will you use it?**
Cryptocurrencies or digital currencies promise t...