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The opinions of the employees of s You are personal.
Investing in cryptocurrencies is one of the many ways to increase your money today. In fact, it is quite difficult to avoid learning about the crypto market and its possibilities. Still, all of this enthusiasm doesn’t mean that it’s the safest way to invest your money. It is only an option.
Last week I was completely surprised by a friend’s reaction when I simply asked, “How much do you have in your Bitcoin wallet?” Suddenly he looked dismissive. What happened? He replied, “It’s a long story. I’ve heard rave reviews of how cryptocurrencies have turned many into millionaires overnight, so I thought it wise to invest everything I had on November 27, 2017. Little did I know I hosted a debt welcome party. I don’t think I can put the hard-earned money back into cryptocurrency. “
I actually felt sorry for him. But the big question is, did you do your homework before you invested all your money? No, he didn’t. He only listened to people’s positive testimonies and responded to them. After all, the crypto market is very volatile. It is not a safe or low-risk investment. Therefore, do not allow that Afraid to stay outside (FOMO) I forced you, like my friend, to make a quick and risky decision. But if you think about it, here are some smarter ways to invest and still make the most of it.
(Note: I don’t want to stop you from investing in cryptocurrencies. I just want you to be aware of the high risk. I want you to know how to invest as a businessman, not as an entrepreneur amateur).
1. Do an in-depth study before investing in a cryptocurrency
To make a profit by investing in cryptocurrencies, you need to do an in-depth study of the obvious currencies. This way, you know the currencies in which you want to invest better and understand the benefits that this brings to the world. One of the main reasons why many still have doubts about cryptocurrencies is that they suffered heavy losses as a result of the dramatic decline in Bitcoin and Altcoins in December 2017.
Like my friend’s case, due to FOMO, he entered the market without proper investigation and got heavily in debt. With this type of investment, you do not have to bet to make a profit, just like with foreign exchange and stocks. So be careful with every decision because the worst thing you can do is invest in cryptocurrencies and know little or nothing about it.
2. Don’t invest because of advertising and noise
An intelligent investor in cryptocurrencies doesn’t make decisions based on exaggeration and noise, but is very risky. If you want to make money by investing in cryptocurrencies, you should invest according to the calculated risks and ask the right people for help or advice. It’s not wise to just trust what the crowd says about a coin. The price could suddenly drop and cause a terrible loss.
Instead, enlighten and ask the right people for advice and put together a plan with enough knowledge before investing. Earning money in the crypto market is no child’s play. You need patience and the right knowledge to make valuable profits.
3. Understand your level of risk and invest what you are willing to lose
Taking financial risks makes some people nervous, while others take advantage of the moment and see it as a potential opportunity. What do you belong to? Be honest with your answer here. It helps you decide where to invest in the portfolio.
If you get nervous about taking risks, I advise you not to invest in cryptocurrencies. There are many other investment opportunities that are not extremely volatile. However, when you take risks, only invest a part that you want to lose if something goes wrong.
Most importantly, there is no rule to invest the same amount. Just because Jan invested $ 4,000 doesn’t mean you have to do the same. If you are willing to risk more than Jan it is your decision and if you are willing to risk less it is your choice. What matters is that you invest within your limit. That is what you are ready to lose.
4. Spread your money in more than one currency
Photo: alexsl | Getty Images.
A good risk mitigation strategy is to spread your investment across different cryptocurrencies. This has its own complications, but is better than investing in just one. Yes, cryptocurrencies are extremely volatile in price, but they’re all unlikely to fail at the same time.
Aside from Bitcoin, there are still thousands on the market. You just have to open your eyes as there are also many fraud coins. Study and select the “real” currencies with potential and then distribute your money based on your calculated risk. The idea behind it and each of these tips is to reduce the risk of losing all your money. Good luck!