While many people who know very little – or heard about it for the first time through the breaking news of its recent crash – will think it was designed to rip investors of their hard earned money. However, the study of a brief history of cryptocurrencies, especially Bitcoin have proven that prices fall only to rise even stronger and better.
The narrative of the past decade has not been that of regret of ever deciding to invest in cryptocurrency, rather it has been that of regret of not investing early enough. The cryptocurrency market is currently operating at a level of global investment never experienced by mankind.
Discussions pertaining to cryptocurrency still makes you wonder if some people around are still living under the rock, but the truth is that crypto seems to be relatively new for some. For others, it is fear of the unknown and taking risks that prohibits them in diving into the world of crypto.
Here are five tips for those who are willing to explore the crypto-land.
- Research Extensively Before Investing
One factor is common to real estate and crypto: they both require decent and consistent research for you to stay atop of the game. The first thing to do before considering shedding some of hard-earned money in bid to invest is to learn and study hard about cryptocurrency.
You must take conscientious effort in understanding the trade you’re about to enter and how its underlying technology works. Getting articles you can read about blockchain technology is a good place to start.
Find out why governments are either banning it or want to adopt it as soon as possible in some cases.
- Don’t Start Big Even if You Can
Throughout my extensive research of the crypto-world, I have realized a very important rule of the market – only invest with your “left overs” not your savings. This is because of the cryptocurrency market is renowned for its huge volatility. The market sways in the directions of hype and sentiments.
- Invest for The Long-Term Profit
Here is a stern warning before you invest, cryptocurrency is not a get-rich quick scheme. Do not invest with the hopes of becoming a millionaire overnight if you’re not one yet.
The truth is that many are attracted to the market especially when the market seems to be favouring investors around them.
- Diversify Your Investment Portfolio
Spread your investments over multiple cryptocurrencies and other forms of investments like real estate and venture capitalism. There are thousands of platforms to choose from and while it is not the number of cryptocurrencies you invest in that matters, investing strategically in those that you have studied carefully can go a long way to determine your success.
- Monitor Your Profit and Loss
It highly important to be up to date about market trends and monitor the growth of your investment. There are ways to cushion a fall or make profits before a major collapse, it all depends on how much time you dedicate to the trade.
It is easier to cut back on losses and invest just before a cryptocurrency achieve a record-breaking milestone. It all depends on how quick you are to receive information and act on it.