5 Facts to Know Before Investing in Crypto

	Investing in Crypto can be a bumpy road when you don’t have any clue on the what, the where and the how. Getting bombarded by a high dose of daily information and news, you cave in to fear and get confused between the technical words and the technical world of crypto. Stepping into unknown ground is surely nerve-wracking but it is nothing compared to the regret of missing out on the exciting and rewarding journey of the crypto space. With good knowledge and experience, new investors will find their way.

Here are some basics and crucial information that you should know before you start investing :

		## 1.	Choose the right timing 

	As you should already know, Investing in Crypto is risky because they are extremely volatile. Their prices fluctuate abruptly because they are influenced by supply and demand, and investor sentiment. Only last week, people had lost their life savings when <a href="https://resh.community/terra-luna-the-crash/">Terra LUNA</a> crashed down.

		## 2. Do Not Invest All Your Money in Crypto

	One day, you can be sitting in your castle and the next, you discover that it stands on sand. You should be aware that you can lose it all so never put all your money on the same line. The crypto market shifts quickly, and many factors come into play such as a crippling paranoia and depression. Thus, you only need to invest in crypto with the money that you can afford to lose. While luck can also do its magic, the vast majority doesn’t always succeed in their first few trades.  

		## 3.	Do Your Own Research

	As the blockchain technology is developing at a rapid pace, investors can find it difficult to keep up with it. Before investing in a coin, always conduct your own research and due diligence. We recommend you to always read the whitepapers and check their social media presence. You will be a lot more diligent when it comes to investigating potential cryptocurrency investments once you see how simple it is. A good crypto project has strong levels of liquidity, a selection of crypto assets, and has put in place solid security measures.		
		## 4.	Audit the project 

	Conducting an audit is a necessary procedure before Investing in any Crypto. It is the most effective strategy to avoid negative outcomes of an investment and to inform users about its financial position. Projects can prevent bad actors from stealing users' funds by addressing bugs and vulnerabilities that were discovered during a crypto audit. If a project has passed a crypto audit, it will be a strong indicator to investors of its commitment to security.

		## 5.	Keep Your Private Keys Safe

	Private key phrase is for your eyes only. One of the best ways to keep it safe is to hold it away from an internet connection. You can store private keys in a hardware wallet such as Ledger or Tresor. Another way is to simply split up the private key into two parts and write each one on a different piece of papers. The aforementioned method ensures  that no one has access to your full private keys. Private keys are the only way to access your assets . If you lose it, you  lose access to your funds forever. It’s important to know that hackers can steal your private keys as anything that is stored on your computer

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