Very often, before we begin our adventure investing in cryptocurrency, we ask a simple but very important question — what are the best options? It is already commonly purported that the cryptocurrency market is mostly unstable — the situation changes rapidly. Some coins can gain or lose points in a matter of days, hours, or even minutes. This brings up the question — what can we do for you at the beginning of this long journey to success? We will be discussing some points in the following parts of this article that will enlighten you about how you can increase your chances of gaining profits in the future.
Stay calm — there is nothing like “easy money”
In our world today, there are so many ‘uncertain’ products. It is a good idea to follow the simple principle that “a good product sells itself.” You have to be careful about the people to whom you choose to entrust your resources. If you frequently visit online forums, groups, or messenger platforms, you will meet different people who are desperately trying to prove that the products they offer are good investments. These products may be about unauthorized coins, scams or rip off schemes (please refer to our story — why we moved from landing to adopt the airdrop formula), products of unknown origins, or an option to buy some of the controlling power in order to gain some type of cryptocurrency (which is a common offer).
Experienced users will be quick to spot the fake currencies, but new investors may become victims of the bigger plan. Ensure that you check the sellers/companies that offer recommendation links (revenue share) which allow you to earn a percentage of the “recommended” investment. The person who makes the recommendation may not be interested in using the product personally because they suspect it might turn out to be a wrong investment. Unfortunately, they will do everything to encourage the potential buyer to transfer their funds. Some of the products may be profitable for a while, but these are mostly pyramid schemes which we strongly advise everyone to avoid.
Systems, schemes, and scams
While studying potential products, you may find a website/group that offers tempting promises such as a 70% or 80% confidence in the “signals” they have access to regarding the cryptocurrency market. In return, you will be required to purchase a monthly subscription before you can access the market information about profitable operations regarding particular products.
However, why would anyone share such “valuable” knowledge with others when he or she can use it to generate enormous wealth for themselves? Signals of this nature can be a two-fold situation — an attempt to scam people by presenting completely random values (signals) or presenting information based on someone else’s calculations which may not be feasible to derive the promised benefits. Other options are similar to the ‘turtle technique’ described below — which is an attempt to control and influence the market.
Get more information from research and interaction
Only interested investors will put in an effort to verify a specific offer. Before investing, it is good to form a habit of becoming acquainted with the websites that can be used to perform professional analysis and set trends (they attempt to predict the trends of particular coins in the market). It is also worth to verify what people say about the cryptocurrency. Discussing with experienced investors is the best source of reliable information about products you are interested in purchasing. Many current users may have already researched the products that have caught your interest. It is important to follow the trends; the information discovered can convince the public to continue or stop investing, however, decisions will be made based on the stock price.
The background check
Cryptocurrencies are often associated with companies that are seeking to gain benefits from using them. Take the case of Ripple for example; it is only used as a universal currency for international transactions. You cannot mine Ripple, so its value is not influenced by the action of miners. Ripple is also used along with other coins by the Santander bank and the Royal Bank of Canada. Large institutions support it, and within a short time, Ripple has rapidly gained and equally lost value; however, it has held a position above the buyout value (USD 0.1 at the highest point of 3.4 USD). In May 2018, the Santander Bank introduced the new OnePay FX service in view of stabilizing the use of the coin and to attract more investors.
Similar to the RIPPLE is the TEN X which is also used for transactions via Visa and MC as a regular anonymous wallet. Another good example is our Exchange Coin. The EXCC has been reflected in three products developed by the EXCC team. When choosing an altcoin from the options in the market, it is a good idea to find a coin that offers more value, rather than an option being regarded as just a cryptocurrency coin.
Choose an investment strategy!
Critically observing the life-cycle of certain types of coins will reveal that they have a distinct beginning and an end. Choosing the right investment strategy will account for 50% of your success. Regarding cryptocurrency, you need to become familiar with the background of the cryptocurrency and with this information, choose a strategy. In this case, the most popular strategy is the HODL. Because incoming currencies have a very low value, we can maximize our chances by holding them until they reach the “pump-and-dump point.” This approach is also known to be risky because we do not know when the currency will lose value due to lack of public interest which may happen before it generates any profit.
However, regarding investments, only high risks can bring massive rewards. With the help of appropriate indicators, short-term investments can also be attractive. In some cases, the smallest fluctuations in the currency stock can generate an impressive income.
Let’s get into some tech-details
In addition to the people-based research we do, there are other indicators that can be calculated based on some specific trends observed from the charts. It is said that the dynamics of the stock market can be solved by applying mathematical principles, there is, however, a lot of irrefutable evidence regarding this claim. For example, the “turtle” technique was developed in the 80’s by Richard Dennis; he guaranteed an annual profit as high as 80% to investors.
Currently, such sophisticated techniques are not being used, but there are some behavioral trends that can be used to predict the next quotations of a given currency, such as the “Bart Simpson Formation”or the “Pump and Dump”. Quite comical names. These behaviors result from the studies done by amateur-specialists. The Cryptocurrency market is still relatively new; the analysts have not had enough time and case studies to evaluate the market, so information is gathered from the community.
Investment diversification
This is a concept that should be understood by every investor. It is a great idea always to share your budget into several investment portfolios; this is an important strategy to earn more profits while reducing the chances of experiencing losses. An investment in three or four products, even in the event of a potential drop in one case, can be amortized due to profits gained from other investments.
Time is money — money is time
You must acknowledge one of the most important aspects of the cryptocurrency market. It is imperative that every investor properly manage their investments. Often the victims of the volatile cryptocurrency market are amateur investors. Cryptocurrency can be regarded as a long-term deposit. This, however, does not mean that it should not be closely monitored. Serious investments require your commitment. Upcoming trends and behaviors should regularly be reviewed. It is also essential to keep track of the market trends in order to make better investment decisions at the right time and to prevent further losses. You should consider cryptocurrency as your everyday job; this is the best approach to achieve success.
Finally, and most importantly
The cryptocurrency market is a specific place that offers is a wonderful opportunity to earn additional income. By using the right tools, knowledge, and opinion, impressive revenue can be generated. However, you must always reckon with the consequences of getting involved in more or less effective investments. We always advise everyone never to invest more than you can afford to lose. Using a crypto exchange involves the transfer of real funds to financial instruments that we do not have much influence over. So, it is best to invest safely.
We hope that the few points that have been described above will help you make better investment choices in the cryptocurrency market, avoid the traps, and attempts at extortion. These are issues that exist in other industries worldwide and the cryptocurrency market also experiences these challenges.
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