6 Crucial Cryptocurrency Investment Tips

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18 Apr 2022
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Is it in your nature to take on a high-risk, high-yield investment? 

In such a case, you may want to look into the world of cryptocurrencies.

Consider the risks and rewards carefully before investing any money into these markets.

The price of Bitcoin, for example, soared to about $20,000 in 2017 before plummeting to approximately $3,500 the following year. 

To avoid making expensive mistakes, you must become well-versed in bitcoin investing. 

The market is moving forward.

Here are a few pointers to help you keep your money safe:

Keep your keys to yourself, and do not give them to anybody else

Codes and keys are the only means by which bitcoin can be represented. Thus it would help if you took care not to share them. 

If you need to keep a record of it, put it in a safe deposit box or vault.

Make sure your computer is protected if you must save it from being safe. 

If your keys are stolen, you cannot know who has them.

Also, See: 3 Most Promising Utility Tokens in 2022


Make sure you don't keep your cryptocurrency on exchanges for too long

It doesn't matter how well-known the platform may be. 

Despite their security precautions, cryptocurrency exchanges remain a popular target for cybercriminals. 

As a result, storing your digital assets on a single platform and crossing your fingers that they aren't compromised is terrible.

Also, See: Learn & Earn, Solar: A sustainable decentralized payments blockchain


Use a digital wallet to keep track of your cryptocurrency

Select the one that has the features and procedures that are most appropriate for your requirements and your financial situation. 

However, don't merely concentrate on the characteristics of the product.

In addition, look at the company's legitimacy, track record, and reputation. 

When purchasing a wallet, there are a lot of things to keep in mind.

Also, See: What is it about Web 3.0 that has everyone so excited?


Before investing in a cryptocurrency, do your research

Cryptocurrency investing advice might be difficult to distinguish from scam tips since many sharks are out there ready to snatch your money. 

While cryptocurrency information might be overwhelming, it's important to pull back from the commotion. 

Look at the project with a critical eye. I'm curious, how many people are now logged in? Is it a solution to a specific issue? 

No, I'm not affiliated with the industry at all. 

Keep away from currencies that promise a lot but haven't produced concrete evidence.

Also, See: What Is a Blockchain Fork and How Does It Work?


Take steps to reduce your exposure to danger

They may not have your best interests at heart when they provide you with bitcoin trading advise.

So don't be swayed by the temptation to copy the faults of others. 

Don't trade with money you can't afford to lose. 

Don't put all of your digital money eggs in one basket.

Invest in a variety of cryptocurrencies to ensure your portfolio is well-diversified.

We've previously established that putting too much money into a single cryptocurrency isn't good. 

Invest your money in various digital currencies, just as you would in stocks and bonds.

The market values of these assets are pretty variable, so you don't have to worry about being too overexposed if one of them takes a plunge.

Also, See: 5 Cryptocurrencies to Buy in response to President Biden’s Executive Order


Finally, I'll say this:

Traders who are new to the market are prone to panic selling when prices are low because of the market's volatility. 

Investing in cryptocurrencies for months or years may provide the highest results since they are here to stay.

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5 Comments

B
E2123
Nice article!! I think another big part of your point re 'taking steps to reduce your exposure to danger' is to have investing rules or 'systems' to stick by so emotion doesn't get the better of you. For example, have an entrance plan (e.g. don't invest more than $x per week - almost like dollar cost averaging). Also have an exit plan (e.g. sell after you've made x% on your initial investment). I do concur with Tim Ferris who says that human willpower and discipline are overrated. Having systems is a better way to make informed choices :)
DudeManETH
Crypto investing is still in the pump and dump stages as the market moves based on the majority coin holders. Once we see some real world use-cases and adoption we will see the coins transfer more and have more stable investment strategies. Right now you can still make great money trading but you need to know the coin, technology and utility. While also getting very good at chart reading.
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