Investing in cryptocurrency has been a fad for years. That’s because everyone around the globe can invest in it without the need for brokers or third-party interventions. Moreover, many cryptos have promising projects that entice investors. 

However, like any investment, no matter how good some cryptos are, conduct your research to know more about what you’re getting yourself into. Moreover, you must consider some factors before investing in digital currencies. Some of them are as follows: 

1. Choosing A Crypto Exchange Platform

Before buying, selling, or exchanging cryptos, you need to have a registered account with a cryptocurrency exchange. In such a platform, you can trade fiat money for crypto and vice versa through a live order book, which can impact the crypto exchange rate besides showing the live buy and sell orders of digital currencies. 

Aside from that, you may also need to find platforms that can accommodate your local currency. Some platforms only accept US dollars, so it may be best to find one that allows you to use your local currency. For instance, suppose you live in Australia. With Swyftx, you can use Australian dollars to buy, sell, or trade cryptos. 

2. Reading The White Paper

When choosing a specific cryptocurrency to invest in, you should check its white paper. You can use it to evaluate a crypto’s project proposal since it outlines the strategies, goals, and road map of the currency’s usage. 

Moreover, the white paper will show you its supply limits and how it’ll distribute the token to its investors. It also includes the ecosystem’s way of burning and mining tokens. And all of these refer to the ‘tokenomics’ of a cryptocurrency. 

Although you don’t need to get into the technical aspects of the coin, as most crypto white papers include such, you need to know the team behind the token—the white paper consists of the people behind the project and how they’ll achieve it. 

Thus, if you’re looking at crypto without a white paper, consider it a red flag. After all, if you can’t learn about its project, the team behind it, and the road map, then how can you trust such?

3. Acting On FOMO

Sometimes, people buy coins because of hype or fear of missing out (FOMO). This could happen especially on new launches of cryptos that use celebrity endorsements and aggressive campaigns. As a result, people tend to jump in to invest in such coins. Worse, some do it without checking the token’s white paper and doing their research because they don’t like to miss out on the opportunity. 

When you let the FOMO win, it can cloud your judgment and cause you to make unwise decisions. So, when you find partnerships or endorsements that seem too good to be true, always check the facts. Start by checking the white paper to gauge if the coin has a good project proposal and take the time to research it.

crypto investing

4. Investing At The Right Time

After reading the white paper or doing your research, you need timing. If you think the coin has the potential to make your investments prosper, then find the right time to buy or trade it. Even if cryptos are highly volatile, you can still see the best time to buy a token. Start by monitoring the market to become familiarized with its price movement since most digital currencies follow price patterns. And, of course, don’t forget Bitcoin’s movement, which is the leading crypto that others follow. 

5. Knowing The Risks Of Investing In Cryptocurrency

While crypto investment can help diversify your assets and give you a high return on investment, it also poses some risks. Hence, it’s crucial that you familiarize yourself with and understand such risks. That way, you can be better equipped with the right information on how to go about your crypto investments.

To name a few, some of these risks are the following: 

  • Since crypto promises anonymity, cybercriminals can take advantage of it by hacking into your account or scamming it. If your investments are not secured, you may not be able to track who hacked or stole them. Thus, you can lose your crypto assets without having the possibility to get them back. 
  • Your crypto is also uninsured because Federal Deposit Insurance Corporation (FDIC) doesn’t cover it. FDIC is responsible for maintaining public confidence and stability in a nation’s financial system. Since crypto isn’t transferred through banks, FDIC doesn’t insure it. As such, ensure that you’re only investing the money you can afford to lose. 


Like any other type of investment, you need to consider some things before investing in cryptocurrency. For one, you need to choose the exchange that can give you the best crypto prices, understand the crypto’s project proposal, avoid acting on FOMO, know the right time to invest, and gauge the risks. 

The list above may not be absolute, but doing such things can be a good start in helping you have a smooth journey with crypto investment.


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