Are you new to the crypto space? Humphrey Yang, a personal finance expert behind a firm known as Humphrey Talks, has some advice for you.
Yang Explains the First Steps to Take
Approximately 55 percent of the world’s bitcoin investors say they began in the year 2021. That’s rather recent considering how strong bitcoin has proven itself to be over the past five years alone. You’d think there would be more people involved at this stage, but it seems like just a year ago is when most traders began stepping into the crypto fray.
Yang feels that investing in bitcoin is the smartest thing to do if you’re new to the digital currency world. For one thing, he feels it is a stronger investment and more secure than many of the world’s new altcoins, which could potentially crash and burn at a moment’s notice given how new and unpredictable they are. He comments:
Bitcoin is definitely the friendliest crypto to get into, but you can get really into the weeds very quickly, and there’s a lot of unregulated risk in crypto, so if you’re not a seasoned investor, you can get in trouble.
In addition, he says that simply jumping into the space without doing any research or learning more about how it all works is a terrible mistake that a lot of people engage in. This sets you up for disaster later, and he says that if you don’t know what you’re doing, you could wind up losing your entire crypto stash sooner rather than later. Yang mentions:
If you don’t know what you’re buying, even with bitcoin and Ethereum, that’s a good sign you should not be messing around with some of the smaller altcoins. A lot of altcoins are just small projects started by Joe Schmo and Jim Schmo in their garage.
Doug Boneparth, the president of Bone Fide Wealth in New York – agrees, saying:
Before you invest your money, invest your time and your energy to learn more about it. You don’t need to be an expert, but you need to understand the basics.
Additional Advice for Newbies
Moving along, he says you’ll want to avoid get-rich-quick schemes. Many of these are scams that are looking to steal everything you own. The best route to take is one of safety and security. Take your time with your learning. Try to develop gut instincts about the space and make the best moves that fit you. He mentions:
It can create a very confusing environment to figure out what’s what and who is who, especially when you have a lot of people really pumping it or being very zealous about it.
Other pieces of advice offered by both men is to be aware of tax laws surrounding crypto and to be ready and prepared for volatility, which thus far has proved unavoidable.