Investing in cryptocurrencies takes a lot of learning to do. All investors go through rigorous research on how, why and when to invest.
Be Prepared and Educate Yourself
“Learn to know what you are investing in.” The world of cryptocurrency is quite complicated, much more to beginners. It takes a lot of time and effort in learning the ins and outs of cryptocurrency. Cryptocurrency is very volatile. Its value may rise and suddenly drop. If you cannot afford a drop of even 50%, then cryptocurrency is not suitable for you to invest on.
Do not expect to reap a 500% profit from your investment. Success in this kind of business solely depends on your knowledge of the cryptocurrencies, the risks you are willing to take and the effort you are to exert.
Invest only on what you can afford to lose
This is the very basic of investing. There are few people who invested in cryptocurrency who have lost a lot due to the volatility of the cryptocurrency world. Those who are new to cryptocurrency must start small and learn the ups and downs of the market to ensure that a good reap of what’s been invested.
Expect the Worst in the Crypto Market
The cryptomarket has been the target of a lot of investors because some countries do not have laws and regulations governing trading, buying, and selling of cryptocurrency.
Learn the Basics of Cryptocurrency
- Blockchain - A list of the digital record of transactions, called blocks
- Exchange - The channel where users, consumers buy and trade cryptocurrency is
- Wallet - It is a secure digital wallet used to receive, save or store, and send cryptocurrencies.
- Public Address - Unique string of alphanumeric characters used in receiving crypto.
- Mining - The process of running a program that would mine or yield small fractions of currency.
- Fiat - Government-issued currency
- ICO- Initial Coin Offering
- Arbitrage - Taking advantage of a difference in the value of the same assets on different platforms.
- Market Cap - The total value held in a cryptocurrency. It is equal to the share price multiplied by the number of shares outstanding.
Questions You Should Ask Yourself Before Investing
- Do you have the capacity to invest in this kind of market?
- How much are you willing to invest?
- Are you ready to Lose some of your investments?
- Are you ready to take the risk?
- Do you fully understand what Cryptocurrency is?
- What are your plans?
- What are your goals?
Investing in cryptocurrency is very popular nowadays. Thou the cryptomarket is very volatile, the success of investing in this kind of venture needs a lot of knowledge on the market and much capitals as well. So before investing in cryptocurrency, one must research very well to learn about the cryptocurrency.