The cryptocurrency market has been big news for a while. Stats show the industry will be worth $23.3 billion by 2023. To protect your investments, use security measures like multi-factor authentication. This helps safeguard your accounts and crypto assets from cyber attacks.

From Bitcoin to Chainlink, the chances are that if you haven’t yet delved into the world of cryptocurrencies then someone you know has. It’s been a buzzword for a while, with posts on social media every 3 seconds about Bitcoin alone, it’s also hard to escape. And while the outcome has been promising for many, it’s also a pretty big risk with which you could be playing with fire if you don’t do the right research to support your crypto investments.

So what makes a good crypto investor? Can anyone invest? And how can you best prepare yourself so that it’s doesn’t all go up in flames? Below, we’ve outlined the top five aspects that will set you on the best path for being a successful crypto investor.

Make sure you have somewhere safe to keep your cryptocurrency

So you’ve done your research on cryptocurrencies and are ready to dive in. But have you thought about where you’ll store your crypto? One common mistake for first-time investors is choosing a poor storage option. Like physical money, cryptocurrency can be stolen in cyberattacks if you don’t take precautions. Be sure to research the most secure crypto wallets before investing. This will save you time and trouble in the long run.

Also, note that some wallets only support one type of cryptocurrency. This can be limiting as the market changes. It’s better to choose a wallet with more flexibility. That way, you can invest in the cryptocurrencies that benefit you most at any time.

Have a risk management strategy

Investing in cryptocurrency is a bit like a mental game of poker. Before you go putting all of your eggs in one basket, you need to consider the risks involved and have a solid game plan set out. While investing in a cryptocurrency is exciting and can be incredibly advantageous if you get the right balance of luck vs. strategy, the truth is that even when you do everything right, sometimes it can all go wrong.

Just like poker, when investing in cryptocurrencies, you need to be sure that you’re in it for the long haul. By being thoroughly researched and self-aware of your own tendencies and habits, you’ll be more likely to avoid the common pitfalls that many first-time investors make. Additionally, protecting your accounts with multi-factor authentication adds an important layer of security, helping you keep your investments safe as you navigate the market.

Don’t dive straight into the deep end

Investing in cryptocurrency can be all too exciting when you see all of the news articles about how much people are making from it, yet it’s one of the most volatile markets out there and what could be going swimmingly in the first few weeks could turn out to be a disaster after a month or so.

The key is to understand the market and make smart decisions. Don’t jump in with the first crypto provider you find online. Today, you have lots of information at your fingertips. There is no excuse for ignorance, especially when your money is at risk. Research thoroughly before you invest. This helps you make the best choices for your situation and protect your financial future.

Be safe

While investing in a cryptocurrency may feel very safe as you have nothing to physically lose, the internet can be a dangerous place if you don’t protect yourself properly. With one small business being hacked every 19 seconds in the UK alone, it’s essential that you take the time to find out how you can keep yourself and your crypto assets safe. Some simple best-practice procedures include using a different email address to your usual personal one, enable multi-factor authentication (MFA), ensure you’re using a randomly generated password that is different to your other accounts, and keep a track of any suspicious texts or emails that you receive as these could be social engineering scams and phishing attacks.

Choose your timing carefully

As mentioned, the cryptocurrency market is highly volatile. It can do very well one day and poorly the next. Instead of focusing too much on the currency’s value at a given time, consider its overall market cap. A supply and demand mindset helps here. When a cryptocurrency nears its market cap, it is more likely to drop later. So, stay alert and keep track.

Overall, similarly to poker, investing in cryptocurrencies can be a challenge. It’s incredibly important to be well researched, optimistic, and show good judgement in order to get the best possible outcome. Equally crucial is securing your accounts with multi-factor authentication to protect your investments from potential cyber threats.