We are in that season again, where crypto prices increase proportionately with popularity. It’s 2019, and you can buy a digital currency as easily as accessing an exchange site. And more people are interested in cryptocurrencies, nearly as many as during the 2017 crypto boom.
As the crypto craze continues, we thought it wise to provide readers with some basics on cryptocurrency investment. The tips discussed here today should come in handy to help you meet your crypto investment goals.
Now, cryptocurrency investment can be very intimidating, especially for the newbies. But the following tips should make things a little bit easier for you.
Wait For The Dip
Just like the stock market, cryptocurrency value is always fluctuating. The best time to invest in cryptocurrencies is when prices are low. Wait for the dip. Crypto prices are often all over even when they are predicted to skyrocket. Cryptos can make incredible leaps while making corrections, and that’s where you will have to be vigilant.
You see, demand and supply are what drives cryptocurrencies instability. Bitcoin prices drop and surge more frequently because it doesn’t produce value as a company. Emotions can have an impact on this type of market. Just as expert opinion, influential people and sudden news do impact price. And that’s why waiting for the prices to dip can be a good idea. Those who invested when bitcoin was at $2100 know what I’m talking about,
The challenge is in knowing when it hits rock bottom. And no one knows the future, so you can’t really predict. But for a crypto enthusiast that keeps tabs on the history of surges and dips, it would be straightforward for him to realize the opportune moment to invest.
Keep Your Emotions In Check
Keep a cool head at all times. In case you start losing value, remember the purpose to which you bought the currency and why its value is where it is. Wait for the right moment before selling to utilize your investment and gain profits. But knowing the perfect time to sell can be very difficult
So, set goals of when you want to sell your investments 10 or 20 fold. And that’s how you can truly keep your emotions in check. By also making sure you stay true to these goals, especially if your target is high
Never put all your eggs under one basket. Do not invest all your savings. You might have gotten lucky in the past and luck doesn’t always follow. Investing in what you can afford to lose is what smart investment entails.
This is the first rule in any kind of business. And it makes sense in all angles. You won’t be in a hurry to sell when an emergency arises, and you won’t feel much loss when it’s gone.
Diversity In Investments
As aforementioned, investing all savings in one investment is walking on a thread. Save yourself the risks that can impact single investments. It may be difficult to assess the best opportunities if you are a beginner. Only people with experience can benefit from such events. So, play safe by being diverse. What do we mean?
Diversify by investing in different cryptocurrencies and while at it, know the events that can inspire surges and dips.