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By June 13, 2022 Uncategorized 0 Comments

5 Things to Know Before Investing in Cryptocurrency

Here are a few cryptocurrency tips that have been learned the hard way over many years:

1. Have a strategy.

“I heard Bitcoin is good. Do you think I should get it?” If you are asking this question, you are in an investment that will end badly.. Have an investment entry and exit strategy. Know your expectations, time and amount of investment well. You need to answer these very well before making your first cryptocurrency investment.

I’ve seen a lot of people get into this business just because of a rumor or someone’s recommendation.. Even if some get lucky, the end is always disappointment.

2. Decide what type of investor you are.

This is where your personality comes into play.. Cryptocurrency business is more psychological than people think and it is very important that you make the investment that suits you.. There are 3 basic types of traders:

Daily traders, they follow the market 24/7, they trade many times a day. High risk and adrenaline. Most of these types are young and caffeine-hungry.

Flexible traders are more relaxed than casual traders. Investments range from a few days to a few weeks. The general investor is of this type.

Long-term investors hold what they buy. Like the man holding the Bitcoin he bought 7 years ago. They allocate 1% of their capital to cryptocurrencies. They are not affected by daily or weekly fluctuations.. Decide what type you are! Cryptocurrency market is seductive and tries to make you out of character. If you let this happen, your end will be disastrous. Stick to the type that suits you.

3. Don’t buy crappy coins!

Only buy coins with real value. Do not take a money because it is increasing or because your friend said it.. Unfortunately, most cryptocurrencies are crap.. There are over 1500 active coins and there will be 1000 more this year, many of which are crap.. What are cryptocurrencies with real value that are not lousy?

Cryptocurrencies with real value are coins with a certain demand in the market, a large and supportive community, a roadmap and a developer team with the ability to get the job done.. And the most important is the money that has financial support behind it.. Those who have employees and more capital for the market are those whose projects are more likely to be successful.

There is one exception to this rule.. Day traders always get lousy money. That’s why they are at risk.. But this advice still applies, don’t buy coins that will eat you up!

4. Do your own research!

Unfortunately, the rules of “stay away from uncertainty and doubt” and “fear of being overlooked” prevail in the cryptocurrency market.. There are no priests in this market. There are only those who make expert guesses in the market.. You have to learn to come to your own decision.

When you don’t do your own research, you will be condemned to what others say.. Most of the time, your own choices are the right choices.. Acquiring this skill will help you in the future.. In addition, you will learn to balance your logical and emotional attitude.

5. Start small!

In my two different experiences I have had it go from $100 to $5,000 in a few months.. This is possible. Small investments allow you to make costly mistakes. Your success gives you resources to invest more. And so you gain experience.

Cryptocurrency market is a market you can join even if you don’t have big capital and reward your skills.. Money can’t buy experience. Everyone has money problems. The investment you will make does not come from easy money.. But it’s a little more comfortable to take risks again with the money you earn from crypto money.. In the end, the money you risk at the beginning is $100.

The above experiences have been gained after losing a lot of money, time and effort.. If approached right, earning cryptocurrency can be very fun and rewarding.. If not approached correctly, it can drag you into a financial crisis.. (Medium)

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