9 Basic Things You Need to Consider
Before Buying or Investing in any
are everywhere today and there is no doubt they have created a new
market. You cannot go a day without hearing someone talk about Bitcoins, ethereum coins or any other coin in the market. Since the
first cryptocurrency landed
in the money markets, they have initiated hot topics on their
credibility and potential to benefit the investors. Although there are
some possibilities of making
money from investments, there are also some odds of losing your
money. This means that you are supposed to be very careful with your
are thinking of investing in Cryptocurrencies, there are some
essential factors that you should weigh before venturing into the
1…Never invest on something you don’t
reality of the matter is that most of people have no knowledge on
cryptocurrencies. This quote applies to all investments.
You have to first of all get enough information on the investment. Not
having proper knowledge of where you are putting your money places you
at a high risk of losses. First of all analyze the pros and cons of
investing in Cryptocurrencies. Understand the risks and rewards before
jumping into this investment.
2…Cryptocurrency is a very volatile market
have been tracking most of the coins in this market you can agree with
me that almost all cryptocurrencies have shown some level of
volatility. Their price movement shows a strong correlation. What this
means for you as an investor is that you only have to invest what you
think you can afford to lose. Sometimes the wider cryptocurrency
market is bullish and most of the coin value rises. When the market is
bearish their value falls. This is the source of your rewards and
3…Bitcoin is not the only Cryptocurrency
It is true that Bitcoin gets most of the press. However, this doesn’t mean that it is the only Cryptocurrency in the market. There are several other coins in the market that you can invest in. Consider doing a research and invest in cryptocurrencies which are not so volatile. Some of them such as OLXA coin Group has a variety of Crypto-Projects that you can Crowd fund. Invest in Cryptocurrencies that are backed by good projects.
4…Cryptocurrencies are generally high risk
that you can afford to lose. Cryptocurrency market is full of risks.
You may wake up tomorrow and find that you have lost all your money.
Everybody knows the advice of investing what you can afford to lose
but very few people follow this advice. The cases of people who have
lost all their investments are increasing every day. I cannot decide on your risk
appetite. If you are a risk averse person, just avoid investing all
your money in cryptocurrency market. Diversify your portfolio to
reduce the pangs of losses.
5…You need a digital wallet
cryptocurrency is a software program that stores public and private
keys. It also interacts with various blockchains
to enable you send, receive, monitor and invest their cryptocurrencies
balance. With Digital wallets, you can trust that your money is safe
and there are low cases of loss. It also helps you to quickly react to
changes in the market. The ease of moving your money between cards and
cryptocurrency wallets is painless for you to respond swiftly to any
change in the market. In case there is volatility in the market, then
you can be able to return your money in the cards to avoid losses.
6…You need to join a proven and reputable
no way you can trade on cryptocurrency unless you join a reputable and
proven cryptocurrency Exchange.
They are platforms through which you can purchase or sell digital
coins or even exchange them for dollars, Euros, pounds and other
accepted world fiat currencies. However, before joining a
cryptocurrency exchange, you have to consider the amount of money you
are going to lose in terms of fees, the verification requirements and
security, Exchange rate, Region and most importantly the reputation.
The best exchanges have ups and downs. All said and done, when
choosing the one to join, ensure the general opinion is positive.
7…Cryptocurrencies are Unregulated
reality is that the absence of regulation can hurt the cryptocurrency
market. Despite all the remarkable milestones that they have brought,
you don’t know the future of your investment. There are numerous
problems that follow the market simply because it is unregulated. This
means that you should be ready for everything. It is worth considering
how the cryptocurrency market has grown over the years. Go for the
most successful cryptocurrencies in the market because they offer
8…Monitor your losses and profits
today’s market, many people say that the capital gains in
Cryptomarket don’t apply simply because it is not yet considered a
real investment. You should simply sit down and track your gains and
losses for your own information and also to see how your portfolio is
going. Most countries of the world have started regulating
cryptocurrencies and hence some of them are attracting tax. You
therefore have to be in a position to pay your fair share to the
government and still be sure you are making profits.
9…Consider the security of your
you may get excited over investing
in Cryptocurrency and end up forgetting the security of your money.
With so many advancements in world technology, you can be sure that
there are hackers out there looking for opportunities to terrorize
you. Before investing in cryptocurrencies, have a well-structured
strategy of how to keep your coins safe and secure.
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The bottom Line
have made millions from this investments.
On the other hand, several other people have lost millions in the same
investment. What makes the difference between the gainers and losers
is their knowledge about the investment, their realistic investment
goals, research and the amount of money they invest. If you are
thinking about making the leap on yourself, then be sure to make
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