Over 13 years after Bitcoin’s emergence, you’d expect that millions of people worldwide have already known about cryptocurrency. Long-term investors and traders must have already gained considerable profit since the beginning. However, there are still some that may have lost their profit or their coins due to a lack of knowledge about investment and trading techniques.
This article will discuss the do’s and don’ts of crypto investment. Keep in mind it is always advisable that you use regulated beginner-friendly platforms like immediate-edge.io.
Do research beforehand. Before you decide to put your money in cryptocurrency investment, it is important that you must research thoroughly. First, you must know what Bitcoin terminologies are, and most importantly, how it works. Research is an essential measure in order for you to be fully equipped with the knowledge you need as well as the strategies you need to apply before investing or while holding on to your investment.
DO: Diversify your portfolio. There are thousands of cryptocurrency platforms out there. Experts usually advise beginners to choose not just one but multiple forms of digital currencies. With crypto’s high volatility, it is not wise to just stick to one. Spread your money and create a portfolio in various cryptocurrencies to minimise the risks as well as mitigate the losses.
DON’T just stick to the popular ones. As of today, Bitcoin is considered the biggest name in the cryptocurrency business. Though it is safe to say that big waves are the best choice, there are several emerging assets that you can find in the market that are cheap, yet their value is consistent.
DON’T mind the dips. Cryptocurrency being volatile is not always a bad thing. Price fluctuation is normal and very common in the cryptocurrency business. Cryptocurrency is decentralised, meaning there isn’t a single organisation, government or entity that controls its price, supply and demand, which causes the unstable market value. Smart and practical investors usually don’t mind these price dips. They just buy crypto at their current price and hold on to their investment until the price surges, which garners more profit.
DON’T store your crypto in a single wallet. Storing a small amount of cryptocurrency in a single safe place is alright. However, once you hit your goal profit and earn digital currency equivalent to a huge sum of money, storing everything in an online wallet may not be a good idea. Online wallets can be susceptible to hacking and theft. Also, it is not advisable to store your earned coins in a single device that can be easily stolen or taken away from you. There are such things as cold wallets wherein you can securely store your digital coins offline. Check here for more details.
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DO hold your coins for the long term. Those who are novices and could not fully understand how trading and investment work might panic and rush to sell their coins when the prices are low. In trading and investment, timing is really important. Wise investors hold on to their digital investment for months or even years until they are ready to cash out their profit. Best rewards are in store for those who wait. Elon Musk of Tesla is known to be a large scale investor that holds their digital investment for the long term. In the cryptocurrency world, it is indeed true that good things come to those who have patience.
DO manage risk. As they often say, there isn’t any gain without pain. Cryptocurrency investment always comes with risks. Its volatility can be so frustrating, especially when there is a consistent drop in price. Do not make the same mistake as others. Learn how to manage your digital currency investment to avoid regrets in the future. In terms of investment, trading more money than you can afford to lose is not a good idea.
When it comes to what to do and what not to do in cryptocurrency investment, there are numerous articles that you can find online. Always research and ask for advice from the experts. Think twice or rather thrice before deciding to invest.