5 Tips To Overcome When Starting Cryptocurrency Investing
When it comes to investing in cryptocurrency people have to take into account that this very volatile market is not for the weak-hearted. On the other hand, this market has matured a lot and has all the properties a regular market (like Forex) has, which is market cycles. Still, there is just one thing which makes the cryptocurrency market unique and that’s regulation or to clarify; the lack of regulation.
As a result, anyone can launch a new cryptocurrency and put it into the markets. This open character of the market could bring the lucky ones big profits, but there are also lots of investors suffering from big losses. If you are planning to join this game but haven’t started yet, you are on the right spot. In this article, 5 tips to overcome when starting cryptocurrency investing.
1.Do your own research
Before you start buying into coins, it’s very important to do your own research. There are several ways to do this but a good place to begin with is Coinmarketcap. This website gives in a glimpse a total overview of the current market and has hyperlinks to every coin out there. Also, do some research into the technology of blockchain networks. A good place to go to is Blockchain.com. This site gives a deeper insight into this network and has an interesting graph’s about current transactions and network statistics.
When you are feeling more confident about this market and corresponding technology, it’s time to find the best online platform to start buying some cryptocurrency. So when you’re new to this or do not have much experience with crypto investing all possible online trading platforms out there could be a little bit overwhelming. Don’t worry too much about that. Currently, the biggest and most reliable exchanges out there are Binance or Coinbase. Both platforms have the highest daily volumes and are proven to be secure over time.
2.Be disciplined and have patience
Most starting investors who are entering the markets, came to this place because they read some success stories on social media about getting rich in just 24 hours. Of course, these stories exist but if you are entering these markets and expecting the same, I have to disappoint you. It just doesn’t work this way, although not anymore. In other words, cryptocurrency investing isn’t a get rich quick scheme.
If you want 5x-10x results(which is still possible) it takes discipline and patience. To do this, stick to your plan and don’t get distracted at results of other investors in the community. Give the developers of your favorite coin some time and participate in their community by joining their telegram or slack channel.
3.Invest time in learning the fundamentals
So now that you have invested in some coins it’s time to do some homework. Most cryptocurrency investors who are successful are just playing the ‘HODL’ game. It’s proven that this kind of cryptocurrency investment strategy is the best, but it takes time! HODLING is a slang in the crypto community which means not to sell for a quick profit but hold on to your investment. If you are planning to do this, you have plenty of time left.
Next, you can use this time to learn the fundamentals by for example deep diving in the mother of all cryptocurrencies which is Bitcoin. A good place to start is reading the Bitcoin whitepaper and learn more about Blockchain technology. It’s just a win-win because you are turning in an expert now, which gives you the possibility to evaluate other interesting coins.
4.Be responsible It’s your money in the markets
Like I mentioned earlier in this article, a lot of starting investors are entering the crypto markets based on others ‘most lousy’ opinions. This is a big risk and also lacks responsibility. You have to take into account that most investors are in it for their own profit and not really care about other investors.
In other words, if you put money in the market based upon someone else’s opinion but getting REKT instead it’s still your responsibility. You can blame the other person, but it’s you who did the investing with your money in the first place. Your money always comes first!
Of course, it’s a good thing if another cryptocurrency investor wants to help you and give some guidance so you shouldn’t start to ignore it. Just remember that it’s your money and you are the one to blame.
5. Invest only what you can afford to lose
Don't expect that profits are guaranteed when crypto investing. It's not! There are plenty of examples of investors who took a loan or sold their property during the ATH of cryptocurrency back in 2017. They could be in deep trouble right now, because the markets haven’t recovered yet. What to do if you need the money, but it’s all in the cryptocurrency markets?
Another good example is the many Youtube video’s which suddenly appeared online during the bull-market back in 2017. The business model of Youtube channels is that the videos with the most views will rank high. As a result, content creators try to join the hype and clickbait you with headlines like “How I made 25K in Bitcoin in just a few weeks”. If you invested big on that kind of advice big chance you got into trouble.
Finally, some motivational words about investing in cryptocurrency. Bitcoin doesn’t care what color you are, what religion you have, what your age is or gender. Happy investing!