The right approach to investing in cryptocurrencies


Investing in cryptocurrency might be the most lucrative enterprise in the world right now, different coins generating massive returns in short time intervals and a lot of self made millionaires springing up from the cryptocurrency sphere. An investor who purchased Bitcoin five years ago and held till now will see that Bitcoin worth above a million dollars

Nevertheless some individuals still seem hesistant to invest in cryptocurrencies as they are also stories of people who make losses, and some individuals who are already invested in the cryptocurrency industry might not feel positive about it, probably because of negative returns. But like any investment or enterprise, there is always a possibility of profit and loss, but the outcome depends mostly on the investor and choices he/she makes.

In this article we summarise the basic fundamentals of cryptocurrency investment into 5 simple points:

1) Do your own research: A lot of newbie, who purchase cryptocurrency, do so without enough information on the coin, they hear a coin is on the rise and they rush to buy without proper analysis. Before deciding to invest you must read about a coin, its projects and applications on the cryptocurrency network. Also read analysis of the coin by experts. In doing your own research observe the price progression, avoid buying coins at the peak of its price, rather target coins that are at a dip price.

2) Diversify your portfolio: It is always advisable divide your capital into different fractions, to be able to invest in different tokens with good potential, putting all your money on a single coin comes with a lot of disadvantage:  you miss out on other coins when they pump and generate profit, and you lose a significant chunk of your money when that singular coin performs badly.

 3) Eliminate fear from decision making: The cryptocurrency market is a volatile market and prices will always go up and down, despite a general trend. Always make a proper analysis before buying a coin or selling a coin. Never rush to buy a coin because it is increasing rapidly in price and you are afraid of missing out on profits, that might be the peak of its increase and the only way left for the price is down. Make a proper analysis before such decisions.

 4) Be Security conscious: The need to be security conscious can never be overemphasized, as the internet is filled with scammers and hackers looking to make quick profits. Never give out the password to your wallet or exchange account to anybody, avoid shady deals and make all your trades on fully registered and regulated exchanges, always double check an address you are sending cryptocurrency to, as sending to the wrong address can lead to loss of funds forever.

 5) Choose the right exchange: Choosing the right cryptocurrency exchange is an important factor in making profits from your investments. Before choosing an exchange, you must first find out if the exchange has obtained the license and certificates needed, for it to operate in your country or region. Trading with an exchange not licensed to operate in your country, can be illegal and might lead to you losing your investments or facing legal repercussions. Always pick an exchange with good liquidity. Liquidity is the rate at which assets are in supply or demand. This ensures that you get the coin at an acceptable market price.

As a recommendation, one of the safest and easiest places to purchase cryptocurrency is World leading crypto-exchange Bityard.

With the best prices on the market, low transaction fees, an instantaneous trading option plus contract and copy trading(developed for beginners)  options, you are exposed to the cryptocurrency market in a safe and secure setting.

To visit Bityard and buy any cryptocurrency of your choice, click on this LINK.

To Top

Pin It on Pinterest

Share This