If you are investing in cryptocurrency, you are probably looking to get some ROI (Return on Investment). The best way to get that ROI is by diversifying your portfolio, ensuring that you have not over-invested in any one particular coin or token, and avoiding the temptation to invest all of your money in crypto at once. These tips will help you get success in crypto investing so that you can reap the rewards of your investment!
1) Own the Market
You can’t invest in something if you don’t understand it, so educate yourself. If you know nothing about how bitcoin works, what blockchain is, and all of that stuff, don’t even bother investing. Pick up a book on the topic—there are plenty of great books on Amazon —and read it. You don’t have to be an expert when you start investing; just find out enough so that you feel comfortable with your investment decisions. We suggest The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging The Global Economic Order.
2) Use Technical Analysis
The best way for investors who are new to crypto investing to stay ahead of their game is by using technical analysis (TA). TA is used by savvy investors because it allows you not only to look at how prices are moving, but also gives you an idea about why they’re moving. If you aren’t familiar with TA, here’s a quick overview. Put simply, TA measures asset price movements based on past performance and projects future movements based on current performance trends. If a coin has doubled its value over a certain period of time and halved its value over another period of time, there might be a relationship between those two patterns. These relationships can give traders a good indication about what will happen next.
3) Go Long
One of the easiest ways to get involved with crypto investing is simply to buy some bitcoin, especially if you’re looking for a safe play. Bitcoin has become mainstream enough that it’s fairly easy (and secure) to get your hands on some through one of many cryptocurrency exchanges, like Coinbase. If you do decide to buy bitcoin, remember that it will take time before your investment can start making money for you—anywhere from three months up to a year or more. Just be patient! You can read about other things you should know about bitcoin here .
4) Always Be Learning
If you want to be successful, you’ll need to always be learning. The cryptocurrency market changes rapidly and if you’re not up-to-date on it, your investment strategy will likely fail before you ever get a chance to see it through. You can learn more about investing by reading relevant news sources and staying up-to-date on trends—and always make sure that what you read is from a reputable source. Also remember that crypto exchanges are fallible; many have been known for their lack of security or simply being hacked, so double check all of your exchanges before making any major purchases. Never stop reading crypto news!
5) Develop a Strong Portfolio
The truth is, success is never guaranteed in crypto investing. It doesn’t matter if you buy low and sell high or if you time your buys perfectly, sometimes all it takes is one bad day or worse case scenario–an entire market crash–to wipe out all of your holdings. Because of that, you need a strong portfolio—one that includes cryptocurrencies with different uses and capabilities so that even when things go south, there are other options besides selling at a loss. The optimal portfolio also allows for future growth because many cryptocurrencies can’t be bought by fiat currency. You may think bitcoin’s price has nowhere left to go but up—and it might—but what about other cryptos? The utility they provide could be their ticket to widespread adoption.
6) Know Your Investments
Before you can invest your money wisely, you have to know what kinds of assets are available. There are dozens of different kinds of assets out there with unique pros and cons. You should do some reading up on them if you haven’t already. Think about it—would you be comfortable getting surgery from a doctor who had no idea how surgery worked? Probably not, but buying crypto assets is kind of like surgery—you need to be sure that your investment portfolio will yield profits at some point or you’ll lose all your money. So learn as much as possible about each asset type before making an investment; even then, never invest more than 10% of your total wealth into any one asset type because that could be catastrophic if things go south.
7) HODL on For Dear Life!
The crypto market is extremely volatile. Any positive gains you make can easily turn into losses, and vice versa. If you want to get success in crypto investing, one thing you should definitely do is HODL (that’s hold on for dear life). This term was coined during bitcoin’s inception; it means you should hold onto your cryptocurrency no matter what happens. Of course, selling something at a loss isn’t fun. However, it’s important that you take a long-term view when investing in cryptocurrencies or stocks—meaning avoid day trading if possible and be ready for major swings.
8) Spread It Out Over Time
It’s hard to resist jumping on a great investment opportunity right away. It’s even harder when it looks like everyone else is doing that same thing. Even professional investors fall victim to emotional investing and make emotional, rather than rational decisions with their money. Don’t succumb to pressure and make emotional decisions: do your research, look at your investments over time, and if you see an opportunity – go for it – but spread it out over time. You may miss some big opportunities, but you’ll also miss some big losses.
9) Research Before Investing
It’s important to take some time and do your own research before investing. Don’t fall for hype and ignore recommendations from friends. Learn all you can about a project by reading its white paper, researching its founders, and looking for transparency from a development team. When it comes to an initial coin offering (ICO), be wary of anything that sounds too good to be true or doesn’t have a clear purpose or use case. If it sounds like a Ponzi scheme or financial scam, then avoid it! The best way to be successful in crypto investing is simply by doing your due diligence and making calculated decisions over time based on any new information that comes up as you learn more about each project.
10) Diversify Over Time
If you invest all your money into crypto at once, it’s easy to get spooked if prices start falling. But you’re also more likely to ride out a crash. If you buy $1,000 worth of bitcoin and you sell any time within five years, at most you can lose $250, says Alex Sunnarborg, founder of cryptocurrency hedge fund Tetras Capital. On top of that, holding onto any investment long enough will eventually reward you. To maximize your chances of success without trading too frequently or holding too much money at risk, think about taking these three steps: 1) Buy some bitcoin 2) Sell half 3) Repeat
This article talked about everything you need to know when it comes to cryptocurrency investing. And also some tips on how you can get success with your cryptocurrency investing, what are some of your best moves, and how you can really get start investing for yourself.