As crypto markets become ever frothier, with record-breaking numbers of people entering the market for the first time in 2021, it has become more difficult for newcomers to get to grips with the essentials of crypto trading and investing.

The extent to which crypto trading has come to dominate the world was laid bare in a recent report by CNBC, which revealed that as many as 1 in 10 people now own cryptocurrency, a figure that is likely to continue growing exponentially in the coming months and years.

As the appetite for expertise has mushroomed, so too has the amount of advice, making it more difficult to cut through the noise and understand what matters. Outlets, brands, blogs, and streamers are all jostling for your attention, with each claiming to offer the best advice on how to compile a winning crypto strategy.

If you’re new to crypto trading and investing, make sure to consult our must-read fundamental tips before you get started.

Your crypto capital is risk capital

This one is something that you should never forget. Your risk capital is the amount of trading capital you are willing to commit to high-risk, high-reward ventures. It is, essentially, the money you are prepared to lose and can afford to lose.

Despite headlines about crypto millionaires, most cryptocurrencies remain highly volatile and speculative. You could strike it rich, but you could also lose every penny you invest. Be prepared for this risk before making your first order.

All cryptocurrencies are basically pegged to bitcoin

One mistake many newbie traders make is focusing too much on new altcoins. These coins emerge almost daily, and traders hope to invest in the next Bitcoin.

While spreading investments is important, remember how powerful Bitcoin’s influence is on other currencies. Almost all major e-currencies are pegged to Bitcoin. The value of these currencies tends to correlate with Bitcoin’s fortunes. Only Bitcoin has emerged as a true crypto leader, so other currencies will continue to follow its movements.

High fees are not unavoidable

One thing that deters people from being proactive with their crypto portfolio is that they are deterred by high fees. Many of the most popular crypto brokers and exchanges often charge steep fees that far outstrip the fees charged by, say, online stockbrokers.

While crypto trading fees are typically higher than the fees charged for most other financial trading products, they are not inevitable. One of the reasons why the European crypto trading platform Binance has emerged from the shadows to become the most popular exchange in the world is because it decided to undercut the rest by offering some of the lowest fees on the market, typically charging as little a 0.2% for Bitcoin trades.

Shop around the find the lowest possible fees before you commit to an exchange. You might even be able to find zero-fee services for certain currencies if you know where to look.

You can try old-school investment systems like Martingale

If you are looking to actively buy and sell crypto on a regular basis, it might be worth looking into trading strategies. Few people realize that just like with forex or stocks, you can use traditional investing and betting systems that were first popularized by roulette gambling before being applied to financial products. As the digital casino platform Betway explains, one of the most popular methods used in roulette is the Martingale strategy, which specifies that you increase your bet after each loss at the roulette wheel, with the idea being that you will eventually recoup your losses when you win.

The Martingale strategy is just one example of a traditional roulette strategy that has become immensely popular with full-time crypto traders. It is worth doing your research to see if there is a trading system that works for you.

Crypto scams proliferate widely

Before signing up for your first e-wallet, it’s crucial to understand the danger of crypto scams. These scams are widespread and increasing. Recently, reports showed crypto scams had risen by 1000% since last October. This spike is driven by the influx of first-time crypto investors. If you plan to invest or trade crypto, do thorough research. Learn the most common scams to avoid them. Crypto scams target users globally, so be cautious. Never trust unsolicited offers or investment tips.

Social media scams are the most common. Ignore anyone offering crypto advice or services on Twitter. Phishing scams are also widespread. Be cautious of emails or texts claiming to be from your coin exchange. These could be malicious. Always use a trustworthy exchange that follows security best practices.

By following these essential tips, you can stay safe, avoid mistakes, and manage your investments better.