5 Best Cryptocurrency Investment Tips 2018
These are the 5 Best Cryptocurrency Investment Tips 2018 everyone should follow before jumping to crypto-market, as it is highly speculative, volatile and riskier than Forex and stock market. Also, these tips may be useful for Forex & stock market traders.
CoinCrump – I remember people asking, Why they lose money on investments they make? Or How they can minimize their risk? I can summarize my answer into a quote by Warren Buffet “Risk comes from not knowing what you are doing.”
5 Best Cryptocurrency Investment Tips 2018
Any investment opportunity comes with an equivalent amount of risk concealed in it. Nevertheless, a good investment is a key to riches. Investing in cryptocurrencies has been proved fruitful since the launch. However, the market is not so pacific and can burn you anytime. So here are the 5 Best Cryptocurrency Investment Tips 2018.
Knowing Before Trading or Investing
As all of us know, how the Bitcoin & other cryptocurrencies hiked from penny to dollar in 2017. Well, this might happened due to a lot of speculation or the investors’ confidence for the cryptocurrency. But almost 95% of us don’t know the logic and technology behind it. Indeed, Blockchain will be the future in the financial world. But you should be aware of the Blockchain technology behind the cryptocurrency in which you are going to invest your hard-earned money. Yes, I think Bitcoin & Ethereum have a long-term scope, but What about other altcoins? Is it worth to spend even a penny in every altcoin without understanding the technology behind it?
Hence, before investing, you should try to collect some basic information about the logic behind the cryptocurrency. From my point of view, reading few books about Blockchain & Cryptocurrencies can be the only way to make the smart investment for future gains.
Always Have a Long-Term Focus and Ignore short-term volatility
The short-term fluctuations are bound to happen, but many investors either lose their faith or get trapped by their greed. This is likely the result of increased media attention to investment results. It is common for people who get easily influenced by someone else’s decisions, thoughts, and opinions. Many people also believe in Early-gratification and end up selling their coin early. As Warren Buffet said “Holding period is forever,” this not only allows an investor to gain more from an investment but also helps in compounding gains.
Additionally, everyone knows holding little longer is profitable but no one holds. This also helps you to avoid getting shaken out of the investment, at the time of volatility. Long-term focus comes from the in-depth analysis, understanding the project and its aim, researching about its developers and shackled faith in your research.
Never Let Your Emotions to Shackle Your Investment
Most of the obstacles to investment success derive from human emotion. The main reason for the failure of the Efficient Market Hypothesis is the lack of objectivity. Most become greedy, confident, and euphoric when the prices are high, causing them to celebrate their winner and buy more rather than booking profits. People usually attach themselves emotionally to investment and take emotional steps of holding their bags even after acknowledging that they can experience a massive blow on their investment.
Never Follow The Herd
Investors follow the herd, despite the susceptibility to errors of emotions. Many investors always try to capitalize on the market movement. This technique is best suited for Swing traders, as they are in continuous chase of people’s emotions. But for a long-term, rewarding investment, you should always behave in a contrarian trend. But it is not enough to move in opposite direction. You need to understand what they’re doing wrong, why they’re doing this, and is there any space to capitalize on their mistakes.
Don’t Allow Your belief To Turn Stale
We need to understand the dynamics of markets. It is good to have a philosophy for investment, but the outlook is a tool to supply guidance and not rigidity. The investor should be flexible and ready to adapt according to any significant change in circumstances. It is very tough to master, but with this, you can lower your risk.
It is crucial to understand and learn about the market before its too late. Investing blindly in any cryptocurrency will lower your chance to stay in the market for long. You should be focused, disciplined and logical before jumping on any investment. Always try to see a bigger picture, collect as many information as you can from the reliable source and have good networks with people you respect. Always rejoice the journey of investment, rather than depending on the outcome. The rewards are the byproduct, and the wisdom of investment is supreme.
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