After reading our guide on crypto jargon and a beginner's guide to trading Bitcoin you are probably ready to invest in cryptocurrency for the first time. At this exciting time, it is a good idea to consider these seven facts which can help you achieve your trading goals. It's a Volatile Market Cryptocurrencies have made the headlines many times due to their massive price fluctuations over a short period of time. Price swings are extremely common, especially amongst newer Altcoins, although even main coins, such as Bitcoin, are known for massive gains and losses. This volatility is due, in part, to the market being unregulated by a central entity. Securing your Investment Unfortunately, this industry has not been immune to criminals, and there are numerous cases of hacks and fraud. As a responsible investor, you should seek to protect your keys and only use reliable, trustworthy cryptocurrency exchanges to do business with. Consider storing your digital currency in offline wallets, and never share confidential information, such as user details or passwords, with third parties. [cta text='Best Cryptocurrency Wallets' href='https://www.cryptimi.com/cryptocurrency-wallets'] Currency Performance If you've got experience trading stocks and other, more traditional financial instruments, you need to be aware that cryptocurrencies don't normally follow the same patterns and rationale. Rather than being affected by performance data and market caps, the value of digital currencies tends to vary depending on news stories. This is why you should always stay up to date with the latest cryptocurrency news. The Best Time to Invest The basic investor rule of thumb to buy when the price is low and sell when it's high applies to cryptocurrencies too, up to a certain point. Digital tokens are such a new instrument that it is difficult to gauge when a price is actually high or low. Historical data is extremely limited, especially compared to traditional instruments. You should avoid panic buying or selling, as you could result in later regret. Instead, give time for the currency to level-off temporarily. A Higher-Risk Investment It is important that you understand that cryptocurrency is classified as a high-risk investment, and you should only invest a portion of your capital in it. Just like any other financial instrument of this risk, there is a high potential for rewards, however, you should never invest more than you can afford to lose. Not all Currencies are Created Equal You are probably aware that there exist many different currencies. You've definitely heard of Bitcoin and perhaps Ether and Litecoin. In fact, there are over 800 different ones, and this number is increasing. Different currencies are created with different purposes, and you should read extensively about the currency you intend to invest in. [cta text='Buy Bitcoin' href='/out/cex'] Cryptocurrency is Becoming Mainstream The more time passes, the higher the number of governments and international bodies embrace cryptocurrencies. Legislation, regulation, and oversight are increasing, as is entrepreneurial innovation in this sector.