This article will show you how to invest in Cryptocurrency. We present to you this post today knowing that you really needed it. Here today we will talk about cryptocurrency in general. Bitcoin, Ethereum, Litecoin, Ripple and many others. What are cryptocurrencies “A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets” This post will tell you more about how to invest on cryptocurrency and mostly what you should know as a beginner. What should you avoid? What should you look for when investing in cryptocurrency? This is a bit of what you should know as a novice to cryptocurrency
How to Invest in Cryptocurrency – Top 10 Newbie Tips
Of late business, news has turned to be all about bitcoin, even if not always, one in a while there is news about bitcoin and other cryptocurrencies. What is the news about? Mostly the news is always talking about how bitcoin is making online transactions easier and very secure, or how investors are flooding in the cryptocurrency world. The reason why investors want to invest in the cryptocurrency is one obvious reason, The value of the currencies keeps shooting in every flash of time.
Here am not going to tell you how? where? or what/how much to invest neither will I tell you to invest in cryptocurrency or not. No! no! that’s not the way. Instead am going to assume that you know zero about cryptocurrency and use simple language to explain to you ten tips to consider as a neophyte before you dive into cryptocurrency world. So read through, this will help you make some wise decisions.
1. Invest what you can afford to lose
In most scenarios, it is advised and highly recommended that you should not have more than 5-10% of your total investment portfolio crypto investment platforms. Before you invest, ask yourself “can I afford to lose this much” if not please don’t invest, please. Just don’t invest more than you can afford to lose.
After investing, speculate and sell your investment. After making profits, withdraw your initial investment and speculate on the profits you made. This way you have no risk losing everything.
2. Know FOMO when you see it
What is FOMO? it means Fear Of Missing Out, This has become daily bread to investors of late. Many investors have fallen because of the trade and invest because they fear they are missing out on what others are doing. But what they don’t know is that their friends have done their research and made the decision independently to invest. So why should you make your decision based on others? Even if you see others doing well and booming in an area, please do your research and know the risks involved. Stop that urge of doing something because others are doing it, it will kill you.
3. Do the research if investing in an ICO
“NEVER forget this, you are purchasing an asset with your own hard earned money, and it should, of course, be your goal to make it profitable, right?. Start off reading on the whitepaper that is on the main site for the “questionable” coin. A good way to avoid a lot of the MANY scams can many times simply be done by critically evaluating the question: “Why do this coin exist?” Is it simply trying to apply a blockchain to something that doesn’t need it or is there a transactional inefficiency/problem that the unique properties of the blockchain can solve?”
Below are some points that you ought to research on before you make an investment on any cryptocurrency.
- Ask your self “who are these people selling the coin? How do they relate to their customers? What are other people saying about them? What processes do they carry out in selling you the coin? Generally, research on the company and know their reputation.
- Also, you get to know something is legit when there are a lot of competitors. You will need to know, are there competitors? what is their main market target then evaluate who is offering the best and real deals?
- Researching more on the coin, you must leave every stone turned. whats the source of the coin? are there dividend structures in place? Does it have value? how many coins can be released in an instant?
- This coin, can it be mined? if yes, can you be able to earn more while using miners who operate under you? If yes, my friend, run, just run! That is just a pyramid scheme. Nothing comes easy, I believe in hard work. you know what they say, hard work pays.
Follow the leader. If you don’t trust yourself or the research, please choose to invest in coins that are globally trending and that the world knows about. this way you will all be certain that they are real and legit. These coins are such as bitcoin, Ethereum, Ripple, Litecoin, etc.
4. Look out for hazards coins. Recognize the most of the alternative coins and know their net value
You should act had to get on every new coin you come across. The reason behind this is because nowadays there is a big “hype” for cryptocurrency that has come up and they have no use whatsoever in any area. These coins are only aimed at making scammers rich, through organized pyramid schemes.
Obvious hazards and scams
- Quick riches. Promises of quick reaches are non-applicable. As I said I believe in hard work.
- They ask you to recruit people to earn something. Why can’t I work to earn? This type of Organisation is pure scam watch out.
- Most people behind the coin (founders) have an unacceptable past thus leaving us with question marks
- Some of these coins don’t require blockchain or sometimes benefit from a blockchain. (be alerted some give 100% false information
- Very attractive websites that seem to use tech language impressing people who don’t even know what they mean.
5. Learn from others
People are losing money online. Do not even in an instant believe that you can make quick money out of this crypto platforms. There are a handful of crypto scammers on the internet nowadays. They advertise themselves saying that they have found a loophole on the cryptocurrency and that they will help you make mone way much easier and faster. This is bullshit, my friend. As someone with the focus on looking for platforms to day trade and invest. Look out for well-organized platforms. Ones that have demo accounts for your practice. Until you feel confident enough then you can go one and trade on a real account. Don’t lose money as your friend did.
6. Do NOT chase a pump and dump
“Never buy a crypto coin based on a fast “upswing” alone. There is a big risk that it is a so-called “Pump and dump” – in other words: a trading scam where people (scammers) organize to coordinate the laddered purchase of an asset, then wait for others to come in at some delay and further increase the price before coordinating the unloading of their position once a specific price target is reached. In general, it is better to look for coins that have long-term investment value (see advice #3 and #4 above).”
7. Make short-term trading decisions based on news, as well as technical analysis
When you are a day trader, watch out for news are true and significant. Do your trade when you are fully convinced and certain that the news you are well informed about will increase the value. Try educating your self in forums and online communities who are having the same objectives. Sign up for newsletters below this articles and get a free educational investor kit. Combine gathered information with indicators like upcoming roadmap item releases, partnerships, fork airdrops, etc, to positioning yourself to get in at a reasonable entry point. Good indicators are MACD (moving average convergence divergence), RSI (relative strength index), market depth and support-resistance lines.
8. Diversify your finance
There are so many different coins in cryptocurrency you could just choose to invest in. But to be on safer sides, you will need to think big and diversify your portfolio by purchasing some of the common and most valued coins. I like to refer to them as the” foundation assets” some of them with big value is such as Bitcoin & Ethereum that are “safe”, also, why not some finance coins such as Ripple, privacy coins such as ZCash or Monero etc.
By doing this you drastically reduce the risk of losing all your money when your assets dump and also a great opportunity of being a jackpot holder after chosen coins increasing values.
9. Accept that it’s OK to miss out on a lot of great investments
Success shows up bit by bit in proportional to your hard work. So please don’t rush into something. Its ok to miss out but losing is not ok. Being a good investor will take you quality time to think through all possible decisions and strategies. Mostly short-term movements are not usually successful. so start by digging deeper into the investment opportunity.
10. Use (Safe) regulated platforms for short-term trading
It is very easy to use platforms where you can trade most of the very common cryptocurrencies and also super easy to make deposits and withdrawals using PayPal or your credit card. They are safe, legit, well organized and regulated. They also offer demo trade accounts to help you learn how the main system works. This way you can create confidence until you can choose to use your hard earned money.
It feels bad stopping at tip no.10 while I know there are others in the store. But for now, follow these tips and most your time in Crypto world will be fine. For more advise information and more tips on how to invest in Cryptocurrency, store safely, how and where to invest, how to earn cryptos instead of buying them, mining, etc then you might want to sign up to the “King Cryptos” newsletter on the front page.
I wish you success!
Cryptocurrency trader enthusiast and team member of King Cryptos
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