It’s an inevitable fact that crypto market has had a significant impact on people’s lives over the past decade.
The most remarkable year to take into consideration is the one we’ve just dismissed – 2020.
The year 2020 has been a significant one in terms of delivering its promise of major developments in cryptocurrency despite the world undergoing a pandemic and a severely damaged economy.
It could be argued that the pandemic has resulted in a shift to the digital world as the banks have shut their doors and people have become more inclined to invest in advanced financing options. Considering that you only need an internet connection to make your desired crypto transactions in comparison to the comprehensive banking requirements, people became more eager to invest from the comfort of their homes.
It is also questionable whether cryptocurrencies soared to new highs because of the fears around the stability of the economic system; which led to people discovering new asset classes. Or whether interest in Bitcoin by institutional investors and banks have resulted in the crypto world to gain more reliability, attention and value too.
Over the past few weeks, the crypto market has seen a huge disturbance in its flaming pattern which put many new and experienced investors into fear.
Could this be the end of the crypto world? One could not help but assume…
So how do we place ourselves in a safe medium?
Here are some tips to take into account as a new investor.
Invest in a few cryptocurrencies
It could be rather difficult to accumulate a profit if you have distributed your money in tens of different cryptocurrencies as you may not be able to keep up with the development of each one. Dividing your money into smaller chunks may not bring you the profits you desire.
Don’t invest when you’re overwhelmed
It’s not a great idea to invest at a time where you’re not completely sure about the decisions you are about to make or if you are at the vertex of happiness or sadness. Psychologically, you may not be making the effective calculations that you need to do in advance.
Otherwise this would be no different to playing the National lottery!
Don’t be greedy
Everyone’s intention is to make at least a couple of hundreds or thousands. Some even dare to think of the millions and I surely can’t blame them.
I am all for being a dreamer as it makes you a romantic, an idealistic, and a visionary person. However, it’s best to save these traits to Arts and Literature as you are more likely to wreck your own ship if you enter the crypto world with this mindset.
Remember, simply doubling your investment amount is a success too. If you’ve invested £100 and you made £200, be content with what you have and decide on the fate of your crypto before it’s too late.
Yes, you may dream of turning that £100 to £1000 but you are also risking your £100 decreasing to £20.
Risk what you are ready to lose
Don’t throw your money away like trash. That’s exactly what you would be doing if you blindly put everything you have into the crypto market.
Do your own research
Don’t heavily rely on YouTubers to hear what you want to hear.
Do take as much knowledge as you can from YouTubers, but always do your own research about the people behind the crypto you have your eyes on.
Follow charts, graphs, trends and the news.
Be ready for anything
The market too has its unpredictable moments. The Bull-market & the Bear-Market. Be aware!
Watch the charts and trends
Don’t invest in a cryptocurrency when it is at its’ peak.
Although when observing charts, the incline may seem tempting and you may fill your mind with the hope of losing out on a potential cryptocurrency, there is a high chance of this point being the all-time high for that crypto.
If you invest, you may not see the profits you predict as you’ve entered the market at a wrong time.
Be cautious of where and how you store crypto
It is important to have a wallet to keep your assets safe.
Storing your assets on a crypto wallet could also prevent you from being a victim of hackers as reimbursements may not be guaranteed if your cryptocurrencies are stored on a specific exchange.
Cold wallets are preferred as you don’t have to rely on an online wallet and you have full control.
Don’t encourage it unless you are content
Don’t jump in a pool if you don’t know how to swim.
People often make the mistake of drowning others with them by doing the basic talks. Unfortunately, crypto is not transparent. There is a lot to learn before sharing what you think you know with others.