For beginners taking their first steps in crypto, it can be intimidating to hit “buy” on those initial purchases. So how best to navigate the market?

The overarching advice is to always start small with low-risk investments, with a structured plan in place. Education in digital assets and caution when trading are both essential, as is an awareness of the volatility of the market.

These are some key steps to take when starting out.

Education.
A baseline knowledge of crypto, the underlying technology (blockchain), how different cryptocurrencies work and operate as a project, plus the risks involved in trading are non-negotiables.

Budget.
Setting a predetermined amount you can afford to invest without it negatively impacting your financial stability is another advisable precaution. Starting with a small amount, and only what you can “afford to lose” will help avoid any nasty experiences when starting out.

Reputation.
Starting with a well-established crypto such as Bitcoin or Ethereum is widely advised. Using a reliable and well-known exchange with strong security features is another way to have as smooth as possible an introduction.

Diversify.
Spread risk by diversifying investments across a few different cryptocurrencies, all the while avoiding overstretching the level of investment you are making and sticking to your budget.

Go long.
A long-term mindset is necessary. Market volatility means short-term trading can be a rocky ride, so holding onto assets over a longer period of time is often more productive.

The descriptions provided above are all based on publicly available information, and as such cannot be considered as financial advice or encouragement to invest. Sources of information used in this post include Investopedia and Forbes. All transactions involving digital assets involve certain risks, which you should familiarize yourself with prior to any investment.