Compiling comments from top cryptocurrency market professionals, it was possible to find the main points of what most would say is important to know before starting to invest in the cryptocurrency market. In this way, CriptoFacil separated what would be the four secrets that you who want to start investing in cryptocurrencies should know.
Table of Contents
1 – Create a Strategy
You need an entry and exit plan. In addition, you need to know your expansion prospects, time, risk and amount of money you are willing to invest. These are all relevant factors that must be answered clearly before investing in cryptocurrency for the first time. Mainly because, many people follow hype, and spend money simply following someone else’s advice without knowing the possible outcome. However, there are cases when these people are lucky in the market. But in the long run, most will lose. Before you start investing in cryptocurrencies, think about how much you are willing to risk/invest. As such, take the time to think about the amount of time or energy you are willing to put into this activity, and think about the time frame for the investment and your exit strategy.
2 – Don’t buy shitcoins
Another way of expressing this is simply acquiring coins/tokens that have intrinsic value. Don’t invest in an arbitrary currency just because it’s on the rise and your friend advised you to. Most cryptocurrencies are bad. With over 1,500 different ones being actively traded and another 1,000 to enter the market this year, the vast majority can be classified as “junk”. So… a coin that is not a “shit coin”? A coin with intrinsic value. Cryptocurrencies have an intrinsic value because they have a well-defined market need, a large supportive community, a competent developer team and, probably most importantly, financial backing. Those cryptocurrencies that have already received (external) venture capital investments have been vetted by company analysis experts, in fact this is a great “search shortcut” to find the next cryptocurrency, follow what venture capital firms are buying.
3 – Always do your research
FUD and FOMO dominate the cryptocurrency market. It’s a psychological game that you have to master by making up your own theses. There are no oracles, only educated guesses. If you don’t do your own research, you’ll have to settle for someone else’s research. In my experience, the best investments are the results of your own studies, before they become popular and others start talking about them. Learning to conduct your own investigations is an important life skill that can pay off handsomely if you succeed. This means developing your critical skills, pattern recognition, and balancing your emotional and logical faculties. Therefore, if you research and form your own opinions, you will be able to tackle the psychological elements of this game much more efficiently.
4 – Go slowly
Start small so you can make cheap mistakes. The better you are, the more profitable trades you can make. Starting small means anyone from anywhere can participate in the cryptocurrency market. Since, you don’t need a lot of money for it. However, it is not recommended to start with too much, especially if you are a beginner. Consider this. The market rewards you according to your abilities. The better your skills, the more advantageous your trades will be since you will have to work. There is a learning curve and money is not a way to acquire this training. So when you start with a low amount, it becomes a game. The biggest risk is your $100. You can always withdraw a portion of the winnings as a reward for success. Just keep the process moving. Also Read: Litecoin Usage Rises for Payments, But Will the Price Keep Up? Read also: UN to use Stellar blockchain to send humanitarian aid to Ukraine Read also: State of NY issues guidance to banks on approving crypto activities
