When should you invest in a cryptocurrency?

It is very important to understand when to invest in such a volatile market with no regulation.

The beginner trap:
Often new investors enter the crypto market by investing in a cryptocurrency purely based on either an upward trend or some hype surrounding the coin. This often misleads the new investor to buying a coin which is part of a pump and dump or that is purely built on hype. It is often when an individual has the mindset of getting rich quick they will end up losing money. They will buy a coin which drops in hype which will then lose value and as they are afraid of losing more money they will panic sell. Whilst money can be made by buying and selling short, the market is extremely volatile and for inexperienced individuals, it is likely that mistakes will be made.

Secure long-term investing:
A much better option for a new investor is to invest in multiple cryptocurrencies which have great technology and are at the beginning or middle phases of their progression. To find a cryptocurrency that is viable for long-term investment it is important to do as much research as possible on coins which means reading the white papers of each potential crypto and then analysing how many use cases it could have and the impact which utilising them will be. Obviously, it is important to invest projects which still have active goals and desires otherwise it is unlikely that the coin will have much more growth.

Summary:
Instead of risking money in the short term crypto market and buying from a speculative market trend, it is much wiser to invest long-term in multiple assets which have great prospects to grow in the future.