Cryptocurrencies emerged as promising digital currencies that have the potential to give astronautical returns on initial investment but first-time crypto investors should understand a few things before they start investing their money.

Cryptocurrency investing

1. Review the statistics of Coin Market Cap

CoinMarket Cap is the world’s renowned price tracking website for cryptocurrencies indicating their current market prices, market capitalization, circulating supply, ROI, and others.

Coinmarket Cap Bitcoin page

It depicts historical data of all cryptocurrencies and ranking of crypto-asset that helps to determine the performance of digital currencies.

The Crypto Market is highly volatile and unpredictable. Crypto investors can’t identify the state of hype, fear of missing out (FOMO), and whales. However, the discussed below some of the most valuable indicators that help crypto investors to consider before investing in any coin or token.

Historical data

Reviewing the historical data of any coin, the investor can see price trend analysis, price fluctuations that are the stick yard to price value gain or loss on a monthly, quarterly, or yearly basis.

It provides valuable insight information to new bees and expert traders/investors & the level of risk of investment by tracking assets’ price movements.

Market Capitalization

Usually, a coin or token with a high market capitalization and large circulating supply are less vulnerable to volatility, whereas the coin with a small market cap endless circulating supply is susceptible to high price swings.

Coin market pairs

Coinmarket cap displays a list of each market pairs at different exchanges.

A coin with more market pairs trade on a decent range of exchanges is in high demand. For instance, currently, con market cap statistics showing 400 Bitcoin market pairs have been reported on 400 exchanges.

Trading Volume

Daily buying & selling trading volume of crypto coins is another indication before making an investment decision.

Cryptocurrency with high trading volume means high liquidity whereas low trading volume digital assets indicating a sign of least accepting currencies for buying and selling, causing the problem for a trader for filling orders. Mostly, popular crypto exchanges delist tokens, witnessed with decline trading volume.

Crypto Charts

Cryptocurrency charts provide a quick look at the performance of the currency concerning price susceptibility to bullish & bearish trend.

2. Timing factor

Timing is a key factor to take initiative at your move. crypto enthusiasts need to monitor the crypto industry & specified currencies in which they are interested to participate because cryptocurrencies have some particular price patterns, follow the trend & invest in on time to make considerable profits.

Timing is key in cryptocurrency investing

3. Basic know-how about the use of hot & cold wallet

Crypto investors should have a basic know-how about the use of hot (online wallets) and cold wallet (offline wallets) to safely secure their digital assets.

It is highly recommended to use a hot wallet to keep a small number of coins/ tokens in the hot wallet so the investor can take an instant transaction whenever he/ she may require.


However, investors need to store a significant amount of currencies in the Hardware wallet for additional security and long-term investment decision.

4. How much you need to invest in coins?

This is another significant element that is needed to ponder prior to making any investment decision. Crypto investors need to realize the potential risk of loss of investment in crypto space therefore, you don’t invest more than you can lose.

How much to invest in cryptocurrency

It is better suggested to invest between 5% to 10% of your investment in a diverse portfolio of cryptocurrencies.


Learning by doing is important, but starting with the right mindset is paramount.  Take the suggestions above as your starting points in your research, and quickly put what you learn into practice.

Avoid overthinking, and always, always invest with funds you could lose, because – pretty much like investing in any markets – investing is risky.


About The Author


Owner of Since 2013, he's been immersed in the world of cryptocurrencies and has become an avid NFT collector since 2019. Also an NFT artist, he is a lifelong learner of mixed-media artwork creation.