We do get that immersing yourself in something new can feel a bit intimidating, though, so we wanted to share some top tips when investing in crypto or non-fungible tokens (NFTs).
Most of the advice below is stuff you’ve seen before. Because, honestly, investing in crypto or buying NFTs isn’t actually that different from a lot of other activities you do online. Hence a lot of the advice is the same. That said, it never hurts to have a reminder about good online practices. So, without further ado, here are our top dos and don’ts of crypto investing.
1. Do your research
This is number one for a reason. If you are choosing to invest in cryptocurrencies or buy NFTs, it is your responsibility to do adequate research into the companies, coins, services etc. you are getting involved with. Sorry to sound so ‘mum’ about it, but this is your money you are investing, and it’s worth taking seriously. So take your time and do as much research as you feel is needed. And don’t rely on a single source of information…which brings us neatly onto point 2.
2. Don’t believe everything you read on social media
We love social media, and we love most of the folks on there. But…there are people on there who have their own agenda, and sometimes that agenda is not to help you out, unfortunately. It’s to profit from other people’s lack of knowledge, and to scaremonger for their own gains. There are also plenty of people on there who have genuinely good intentions but are just misinformed. In fact, the category of good intentioned people far outweighs the scammers, but even those who want to help out sometimes don’t have all the facts. So if you see something that sounds interesting or weird or wrong, loop back to step 1 and do your own research.
3. Don’t share your keys/passwords or bank details
Simple right? Obvious, surely? Well, no, not if you’re new to crypto and NFTs, and that’s what people are banking on. If you’re not familiar with the lingo (pro tip: check out our crypto dictionary for an overview of common terms) and processes, then someone asking for your private key (this is unique to you and should never be shared!) to organise a transfer of an NFT or cryptocurrency might sound entirely reasonable. It’s not. If anyone requests any information from you, especially out of the blue, then halt and check things out before proceeding. Some things can be shared, but your private key, banking details, login info or anything like that should absolutely not be, and if something smells fishy, be ruthless and refuse until you can investigate further. (Pro tip: if someone is rushing you to give info for a ‘limited time deal’ then it’s possibly a scam).
4. Do follow the adage ‘if it looks too good to be true it probably is’
Scammers rely on people wanting great deals, and being too impatient to investigate them. Don’t be one of those people. The best defence is a healthy dose of scepticism. If an offer comes up that sounds way too good to be real, check it out. Ask around in local community groups to see if they’ve had similar offers, or know anything about the person/company making the offer. It’s OK to be cautious.
5. Do get involved in crypto communities
Having a group of people who’ve already been there, done that, is really useful, especially when you’re starting out. If you’re new to crypto and NFTs it’s well worth joining a few online communities to get advice, learn about the space, and also have fun chatting. As we mentioned above, these can be great places to get info and sense check things, as well as being interesting and fun places to interact with like minded people. We have a Terra Virtua Discord server and a Telegram channel, that are full of awesome people who are always happy to share their knowledge. Plus you can follow us on Twitter, Instagram, and Facebook for updates and NFT news.
6. Don’t invest more than you can afford/you’re willing to lose
This is a standard piece of investment advice, along with ‘past performance is no guarantee of future results’. Both are well worth remembering if you do choose to invest in crypto or NFTs. Crypto is a highly volatile market, which means things can change on a dime. And as much as people will claim to know what’s a ‘sure bet’, the truth is that no one knows for sure. If you are not comfortable with that level of risk, it might not be the right investment for you.
7. Do check and double check the details of any people/companies that approach you
This one might feel like repetition of the above, and it kind of is, but it’s sooo important, so we don’t mind repeating it. If anyone, whether that’s an individual or a company, approaches you with an offer, go right back to step one and DO YOUR RESEARCH.
If it sounds like common sense, that’s because it is. But we also know that the crypto space is exciting and moves fast, so it’s easy to get swept up in all the fun stuff going on. One last tip we’ll give you is that you don’t need to rush! Cryptocurrencies and NFTs aren’t going anywhere, so don’t feel pressured by friends or the media to get involved if you’re not ready.
And don’t forget, this is supposed to be fun, so enjoy exploring all the opportunities out there in the crypto and NFT space!