You might have just started your career as an investor in cryptocurrency and be a complete novice in the market.
But that does not imply that you can establish only after losing your hard-earned money. There is no hard and fast rule that you cannot make it big without losing money, infact people have made millions without a single drop.
Yes, of course, since you are new to cryptocurrency, you will find things different, difficult, and it will take you some time to grasp things. Which is completely normal. And guess what, you can always do your own research, and start with great knowledge about the industry.
There must be a pool of questions hovering inside your mind right now, but that’s a normal scenario for every new journey you partake. As of September 2019, a research from Statista states that Bitcoin is the most expensive cryptocurrency in the world with a value of $10,458 U.S. Dollars. So, I am sure, all the confusion, in the end, will turn out to be rewarding. So here’s a guide that will answer all your basic questions about investing in the cryptocurrency market.
Learn to avoid the noise
When you decide to invest irrespective of any kind of currency or bonds be prepared to hear a lot of noise. At any given point of time, you will encounter arguments and differences of opinion in the market, both in favor and against it. I am sure most of you must have heard from the press, media, people and financial sectors claiming and preaching that cryptocurrency is a simple fad, a pyramid scheme, or even a result of over-hyped speculation. On the contrary, you will even hear another part of the population embracing it, praising its financial aspects. Don’t believe either of them! Yes, neither the positive nor negative. Stick to your guts and invest in what you believe in. Learn to avoid the noise and do your own research because you certainly can’t afford to lose millions in influenced by a third-party opinion.
Get accustomed to the unexpected
The market that has been your center plan of investment, that is cryptocurrency is an extremely volatile and dynamic market. You can’t ignore the uncertainty, neither can you expect things to flow at a fixed pace or rate. Here’s a fact check by Statista, in 2017 the market capitalization of cryptocurrency was up to $566.26 billion dollars and dropped down to $128.78 billion dollars in 2018. So, always keep in mind that a huge price swing is just a step away. Unlike the traditional markets, unfavorable price changes, terrifying occasional stints of investment performances, and unexpected price drops are a common sight here. Think rationally before you step ahead in the game of cryptocurrency.
Don’t listen to social media communities or ‘gurus’
Cryptocurrency is a market, which garners a lot of attention from people and social media. Thus, it is of no surprise that people on social media would claim to help you, give you tips and even make you money via cryptocurrency. They are termed as ‘pump and dump’ groups and as the name suggests, it leads you to the dump in the end. As an investor, especially a new one, stay away from them at all costs. Investment is fruitful only when you follow your own instincts guided by your own research. Cryptocurrency is like a game, there is a winner, but most importantly there is a loser. And these groups are only paving for the loser side. So instead create and follow a self-built strong investment strategy, even if you lose, it will be on your own terms, not with a third-party opinion.
Research well and perform even better
No matter how many tips you take, no matter how many advises you follow or no matter how easy or difficult it is to make money via cryptocurrency, everything will be in vain if you are not performing your due diligence in the best possible way. You cannot cut slack in the pre-investment research and later blame it on the market. For example, You can check this website to get unbiased reviews about cryptobots. Additionally, every necessary detail is available in the Crypto Whitepapers online. From the most traded to the niche cryptocurrencies, it will give a fair picture of the depth of the river. Crypto Whitepapers will have you covered completely, from head to toe, if only if you decide to research properly.
Don’t put all your eggs in one basket
I am sure all of us must have heard this phrase at least once in our lifetime! Let me customize it, considering the subject matter – ‘Do not out all your cryptos in one basket’. Instead, go by the worldly proven golden rule of investment: Diversification is the key! It not only has benefits of dividing or reducing risks but also, is essential and healthy for your cryptocurrency portfolio. Just like, financial advisors recommend you take a position in multiple stocks, I recommend or suggest you to invest across different sectors in cryptos. I am sure by now you must have done your own research – so go ahead and make the best of the available opportunity. Play wise and it will give unexpected returns.
Get a new personal alternative email
You increase the risk of data breach manifolds when you decide to trade with your regular email address. Believe me, this is not the type of risk you would want to take. So, it is strongly recommended to get a second email account, solely for trading purposes. Secure it with a two-level authentication password security. Ensure that every service that it offers, in bind within a two-factor authentication. Use a unique username and password, free of all your personal details that makes it almost impossible for hackers to trace your account.
Stay alert with mobile wallets
You are multiplying the risk by many times when you decide to store, or trade via mobile phones. Mobile phones are comparatively more convenient than any other means, but it can also be easily compromised on an electronic basis. The reason why it is prone to hacker attacks. You don’t want to lose out on all your invested principal simply because you chose convenience.
Hopefully, these 7 tips will give you a solid kick-start in your journey of cryptocurrency investment. But don’t forget that practice makes a man perfect. The more you invest your time and energy in this field, the more you learn. Develop your own strategy, perform, learn from your mistakes and redevelop. All the best, Investors!