Cryptocurrency investing guide
Cryptocurrencies have made the riches as well as break the riches. If you are considering cryptocurrencies in your portfolio it could be the good investment or it could not, depends on the cryptocurrencies you prefer. If you are just beginner in crypto space this guide will help you to kick-start your investment in crypto assets and uncover the facts regarding how you should start investing in cryptocurrencies.
Understand what you are investing in
One simply does not invest in anything without knowing what they are investing in. Most people see something on the ride and they just jump on the bandwagon and then they think they're going to make it. And the reason they jump on the bandwagon is FOMO, the fear of missing out. The similar scenario can be possible while investing cryptocurrencies. You don't just invest in crypto coins because you friend or experts claim that it will raise in the future. That’s absolutely rubbish! You need to understand what you are investing in, analyze the profile of the company and development team, and deliberate regarding the core an idea or product or service of the company before investing.
Start small, grow big
Once you have done your research and grasp the industry and technology you can get started. Open up an account on any single exchange such as Kraken or Coinbase or any other exchange you prefer. Finish the required procedure and deposit the small amount of money. Don't start big! People think they become rich investing in crypto, another bandwagon, but that's the partial truth. There are variables such as strategic investment, risk involvement and so on for this. Invest small, study and analyze the trend, grow or lessen the investment regarding the situation and if the situation is favorable invest more. As we all know cryptocurrencies are highly volatile and prices alter within days to the greater extent, so simple speculation results in the tremendous loss. Start small, get aware of the situation and take small steps.
Acquire some cryptocurrency but not just ‘any’ cryptocurrency
There are almost 1300 cryptocurrencies currently circulating in the crypto space now with more being introduced almost every day. You can’t randomly choose one and put all your investment in just ‘any’ crypto trading in the market. You can definitely try with Bitcoin or Ethereum, in spite of being highly volatile, these are the most preferable and trusted crypto coins. To get started, you don’t have to purchase the whole coin, you can buy the fraction of the coin to keep your investment small and safe. For example Bitcoin, not all people can simply buy the whole Bitcoin but you can rather buy the small fraction of it in form of millicoin or micro coin.
You can buy the coins which are currently trading at the lower price and have potential to grow big in future. Though you can simply do ‘eni mini mine mo’ and find Mr. Right for your investment. It requires a lot of research. One more thing you need to know is the timing. You should know the right time to buy or sell the coins just like we do in the stock market.
Continue researching and educating yourself on the other cryptocurrencies
As I have mentioned earlier, there are thousands of cryptocurrencies hovering in crypto space. You don’t necessarily have to stick to single cryptocurrency and kept yourself invested in it. As veteran investor said once, never keep all your eggs in the same basket. Split your investment into smaller investments through different cryptocurrencies. Just pick one, find out why does that particular crypto exists in the first place, the developer team behind it, what problem they solved, read their white paper and concrete the decision whether you should put any money into this. If you don’t find the one you picked right one, go for another one. Repeat the procedure until you won’t find out your Mr. Right.