This is the first article in a new series of investing in blockchain based assets for beginners.
You have probably read your fair share of investing and saving tips articles on the internet. So, one more will not hurt. In fact, what I have learned is you can never know too much. In fact, I still come across articles about investing and saving and pick up some new tips from time to time.
Let's cover the basics...
a. Research
b. Invest responsibly
c. Keep good records
d. Improve your security software
Security Software
The key to security...
I know your probably wondering what does security software has to do with investing or investing in blockchain based assets but you'll benefit in knowing that software security plays a key role.
While some investors put their trust in exchanges, other investors would rather download the appropriate cold storage wallets to self-manage their assets. While I personally think both are good, I tend to go with exchanges, for the sinple fact that if you lose your private key you will never be able to retrieve your assets.
The reality is is that while we like to believe our home devices are secure, we can never be to sure that our computers won't become infected with nasty viruses, malware, adware, bugs and other malicious software. When this happens, usually 50% of most people lose access to their device immediately and are then forced to reboot their PC or mobile device without the ability save or recover many of their personal files or data.
At least with a trusted exchange, you will have many more options in recovering your assets and your account if something happens to your primary device and you lose your password. Most exchanges are registered with your countrys' Consumer Protection and Financial Investment company so you will still have some kind of insurance on your blockchain assets and hope you will not be out nothing in any such event.
However, if you still choose to self manage all or some your blockchain assets, you will need a good Antivirus program (i.e. Norton Security).
For Taxes Purposes
Keeping good records...
Taxes have officially invaded the blockchain investment space and if you don't want the IRS penalizing you with backup withholding, supeaona-ing your bank accounts or filing liens on your property then keeping a good record of your transactions will most likely keep you in good standing.
Because of so many incidental mishaps, it is wise to keep your blockchain ledgers in good standing in general because you never know when you may need to prove, verify or dispute a transaction. So it is definitely something to take into account, especially if your annual transactions met the minimum IRS reporting threshold.
Research
Knowing when to invest...
Research is good for many things but on the blockchain, it comes in like a ritual. When you invest in a token, coin or security token there's still the possibility of losing money if the company goes belly-up. And that's not to mention the notorious Exit-Scam model. Both two are varying reasons why research is king.
Now there are over one-hundred exchanges and blockchain companies combined that have either executed an Exit-Scam or went belly-up; and a few good ones in recent months. Therefore, you can never be for certain but checking out the companys' goals and future endeavors will tend to brighten up your decision; as to whether you believe you can invest in that company with confidence.
Make Wise Choices
In conclusion, wisdom is a good word but when put to good use you can never go wrong or at least you will have effectively side-swiped a bad invest or two, depending on how you invest and how often.
Something I have become comfortable with is passing up a good deal, opportunity or once in a lifetime kind of thing to get my hands on it or much of it before the price skyrockets and I'm left FOMO-ing about it.
Don't overthink it and consider it better to have stuck with your original investing goals.
Maybe it wasn't for you or maybe it would have interfered with your process and now you have to reassess your budget which will likely end up meaning you'll have to spend money you intended on saving for a rainy day.
Because the chances of getting rich in investing in blockchain assets is as about the same as you and everybody on planet earth buying a lottery ticket.
You, me and the rest of the 1 billion+ people on planet earth can buy a lottery ticket and choose the (same exact what we believe to be) winning numbers but if those numbers don't hit we all lose.
In that case no one was none the wiser!
Note: Making wise choices cannot be sumed up in any one action or piece of advice but how much knowledge you have about the project in which you're investing.
If you like my content, you can show your support by giving me a thumbs up and sounding off in the comment section. It will help me better understand you, my audience, and what you like.
