Digital currencies are no longer a new addition to the market since more and more people are largely familiar with what they are and how they work. Although there are still many who do not, the increased amount of knowledge and information among the common folk guarantee that anyone even remotely interested can become skilled and well informed. Therefore, getting into the cryptocurrency game has never been easier and it is always a good time to start your journey with an initial investment.
The biggest problem that is also an obstacle that people often do not know how to overcome is the fear of losing all of their investment money once you buy cryptocurrency. Is this possible, and if so, how can you prevent it? It is natural for any investor to want to protect their investment no matter how big or small. Only by becoming better at it can you make more money, which means losing it all should be out of the question.
In this article, you will learn whether or not one can lose their digital currency investment money and how. What is more, the text will serve as a beginner’s guide on what not to do and how best to begin your crypto journey towards a more prosperous future. If you are looking to learn more about this topic, make sure to check out advfn.com.
Starting Off the Right Way
The initial stages of crypto investing that every investor has to take are rather simple. Although this is the case, the first few mistakes can happen right then and there. To best prepare yourself for your initial amount of money becoming your first cryptocurrency balance, you have to do it the right way and on the right platform. What is more, you have to know what currency you will buy.
Lucky for you, in the year 2021, all of this has been made easy thanks to the top-tier platforms that allow any user to do all they need. These platforms are called crypto exchanges and they allow the users to buy, sell, and trade their currencies. Not only that, but they come equipped with all the latest news, trends, and prices updated in real-time. For absolute beginners there also tips and tricks, as well as guides and tutorials.
Opening an account on one of these is free and once you do it you will have all you need to start. From the place where you will actually be doing all the business, to the electronic wallet that will hold your balance and keep it protected from outside attacks from hackers and other cybercriminals. Go out there and do some research until you find the best crypto exchange for you.
Making Your First Purchase
Now that you know how and where you will be doing all of your trading and learning, it is time to actually buy your very first batch of cryptos. Mind that there are no rules when it comes to buying it as not everyone has the same amount of money to spend on investments. What you should never do however is put all of your eggs in one basket and part ways with most or all of your savings. Always have something to fall back to in a dire scenario. What is more, since you are just starting, it would maybe be better if you purchase a small amount initially at least until you get the hang of things.
Buying crypto is easy since you can do it with credit cards and bank transfers. Dedicated payment sections exist on all exchanges and other apps so you can do it in a few simple steps. Mining is also possible but it takes time. If you want to start immediately, purchasing a small amount is the best way to go. However, you can only do it if you know what to buy. Most people opt to start with bitcoin since it is both the most popular and the most valuable coin. Our advice to you is to do the same as everything is compared and calculated based on the leading cryptocurrency.
At the moment of writing, 1 BTC is worth over $54,000. You hardly have this much laying around and you probably only want to invest $50 or so. If you have more, great. If not, rest assured that this amount is more than enough for the start. The important thing is what you do with it. This would give you 0.001 BTC. With this you can do a lot, wait for it to jump in value and sell it, trade it for other cryptos, or invest more. It is all up to you and what you view as the best business move.
Can You Lose It All?
If we were to simply answer the titular question of can you actually lose more money than you invest in crypto, it would be a definitive no. However, things are not that simple. If you invest the aforementioned $50 in bitcoin, you will always have some money in the form of BTC. Unless it drops to absolutely nothing and loses all value, then you will lose the initial $50. This is extremely unlikely to happen though.
However, if you turn the starting $50 into a small fortune of, say, $100,000 and then lose it all, you will have lost the money you made but not anything else from your original savings. Your fortune will be gone but you will still have everything you had prior to your bitcoin endeavor. What this means is that you cannot really lose more money than you invest. It is actually pretty hard to lose the initial investment in the first place since it takes a great deal of misfortune and uncalculated moves on your end to do that.
Being afraid of losing one’s investment is a normal thing, but you must not let it drive you forward. If you do so, it will actually keep you back from fortune and lucrative business moves. In a game where people win millions and lose millions more in a matter of days, it is natural to feel scared. If you approach it with the right mindset and keep a certain level of care, common sense, and knowledge on your side, you will be fine and never lose more than you can afford.