Cryptocurrency Received all sorts of negative views and reaction when it came to the picture years a go with a number of people branding it Ponzi scheme, scam and all sorts of names that spelled negativity to the widely unknown technology. Years down the line after BTC reached an all time high of $20k, people are beginning to realize that crypto is not just a passing FUD but rather a revolutionary technology that is here to stay. The crypto business i not however one to blindly venture into .There are a number of considerations one as to make before committing money.
so what exactly do you need to know before joining the cryptocurrency wagon?In this article i put together some of the basic information that i consider essential to any potential crypto investor. a number of people get into cryptocurrency with high expectations but fail to ask themselves the reason as to why they are investing There are a number of reasons as to why people invest but you have to put the following into consideration:
1: If your intentions are short-term with an interest of only earning short term gains then its sensible to buy low and sell high Its however not as easy
as it sounds as you will have to engage your timing skills properly. The perfect time to buy low is during the bearish run. During this time, the
market struggles and most coins lose significant amount of value, making them cheaply available. Take advantage of these times and invest in
quality coins that will regain value during the Bull run enabling you to sell high hence making profits off them
2: If you are a legitimate crypto believer then i'm glad to tell you that you are in the right side of history. You are probably interested in long term
investment as you are betting on the future success of this amazing technology. You will also need a keen eye for good coins, sport them at
an early stage, invest but unlike those with short term intentions, You hold. That's exactly what the early BTC and ETH adopters did and now they
are enjoying the fruits of their effort. This however doesn't mean that holding is the ultimate get rich strategy.
3: Don't Gamble away your money in just any project and hope that it will do well. A number of successful crypto investors will tell you that there
might have been a bit of luck in their success But at least they did their research well before investing in the coins. There are a number of
investment opportunities in the cryptocurrency market, but not all of them will be a success and neither will they make you rich. Be very choosy
with where you put your money and make sure you do an exhaustive research on the project you are about to invest in
4: Cryptocurrency is not Stock. Don't ever assume that these two are related, and that you can use the stock trading knowledge to trade in crypto,
these two have nothing in common and if they do, its very little. Tools such as the RSI (Relative Strength Index) and ADX ( Average Directional
Index) Might be of help for trading purposes but its better to treat crypto independently as its market characteristics are different from the stock
market
5: Develop a well structured investment plan and stick to it. a properly laid out investment plan will act like a guide to your investment actions, set
your investment objectives here, state how much you are willing to risk. follow this structure to the later and crypto investment might just work
out for you, Remember only to invest what you can afford to lose. Taking Risks has made quite a number of rich, but if you decide to take risks,
then at least take well calculated and informed risks..
6: There is no security guaranty in cryptocurrency The crypto platform doesn't guarantee the safety of your your investment there high insecurity in
the platform so much so that even your private wallet is not safe from the hackers. Its therefore your personal responsibility to ensure that your
investment is safe. For this, i highly recommend hardware wallets like the Ledger Nano S and Trezor. web based wallets are just too vulnerable.
7: SCAM IS REAL. Hackers are not the only threat to the crypto platform, Scammers also thrive here and if you are not careful they will scam you out
of your investments and there is nothing you can do about. Be careful on whom you trust, or better still, trust no one.
Cryptocurrency is beautiful platform with lots of promise and good opportunities that if tapped well can create wealth, the technology is quite promising. Its just a matter of time before its fully adopted Lots of caution is however needed before committing money in the crypto platform.
what are some of the things you consider before investing? share your thoughts and help the crypto platform grow.
Topic: WHAT YOU NEED TO KNOW BEFORE INVESTING IN CRYPTOCURRENCY (Read 128 times)
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