Question from our reader:
I’d like to start investing in Bitcoin, but I don’t know where to start. I know almost nothing of cryptocurrencies. What can you recommend for beginners?
First of all, you shouldn’t decide on investing in any asset if you have no knowledge about it. If you don’t know anything about Bitcoin, then you can’t really decide if you want to invest in it, or would that be a bad move. So, for starters we recommend complex education.
There isn’t any one way that absolutely anyone, who wants to invest in crypto, could follow. Many things depend on whether you invested in other assets before, understand the technology behind cryptocurrency, on what investment strategy you want to follow, as well as individual predispositions and the way we learn the fastest.
As a start it’s good to check what level you’re at, even if it’s just a quick check. It’s good to read some professional analyses, i.e. one of the ones available at Bloomberg website, and assess how much do we understand. You do have to be honest with yourself, though, since cheating only works to your disadvantage. So if you don’t understand the graphs and technical analysis, you should be looking for an article, blog, or a training that includes elements of basic technical analysis. If an expert says that this and this rule will affect the price positively or negatively, and you don’t know where does it come from, you’ll look for more analyses on legal status influence over the market, or blogs, or guides.
It’s very important to build a “basis” – the most basic knowledge about a chosen topic. You can do it through trainings, beginner guides, e-books explaining the general things. After learning the basics it’s time to create an “expert network” of blogs, materials, or trainings from people, whose analyses proved accurate before. They will usually be specialists writing in English, quoted on some of the biggest business portals. The articles published by them will require understanding the basics.
A good source of free knowledge are discussion forums, including Reddit and Polish cryptocurrency forums. Using them allows for quickly finding an answer to your burning questions, but you can’t be sure if the answer is correct – you have to keep in mind that most of the people there are amateurs.