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Investing in Cryptocurrency- What you should know

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Written by Β Β 20
1 week ago

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Investing in cryptocurrencies right from time has been painted by so many people as a 'risky venture'. However, while this cannot be described as being totally false, looking at it from another perspective, investing in cryptocurrencies could be a headway to making massive profits in the long run if the right strategies are put into place.

Investment as with general knowledge works on the principle of appreciation. And how crypto investment basically works is by leveraging on the basic defining characteristic of most cryptocurrencies- volatility. Investment is just buying a coin with the hope of it appreciating over time.

But how can you invest in cryptocurrencies the right way? Here are a couple of things that could help you;

DO YOUR OWN RESEARCH

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Now, this is a very essential step that is vital to kickstart your journey in crypto investing. Doing your research generally involves taking a study of the coin(s) you have in mind to properly evaluate whether or not investing in it/them at a particular time is going to be profitable- This could also comprise of technical and fundamental analysis.

Key things to look out for when doing research about coins could include; the market capitalization (how popular and dominant a cryptocurrency is in the market), the company behind the particular coin, what the coin is targetted to address (use cases), the reason why the price value could probably appreciate over time, etc.

While the above factors could make doing research seem like a really big deal, the point is basically just to be sure the coin you're buying is safe to invest in and you can be sure buying it would meet your needs in the long run.

SET INVESTMENT PROFIT TARGETS

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This is yet another important factor that is necessary to help you invest in cryptocurrency rightly. When investing in crypto, setting profit targets will help you ensure you take profits at the right time and you do not fall short. This is usually more of a personal thing and a target can either be for the long term or short term over a particular time frame.

STAY UPDATED REGULARLY

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If you want to ensure you do not miss out on important cryptocurrency happenings and trends, you have to ensure you are right on top of them by regularly staying updated! This is also important as it can help you know the reasons behind every major coin pumps and significant price changes.

Staying updated with information generally helps to regularly educate you, alert you, as well as further helping you keep track of price increases of your cryptocurrencies of interest so you could know when to take profits.

There are various online sources you can stay updated with crypto-related information regularly ranging from websites, podcasts, youtube videos, etc.

DO NOT GIVE IN TO PANIC!

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As stated earlier, a lotta people consider crypto as a high-risk venture. This is usually due to the pattern of drastic price movements of most cryptocurrencies.

Panic and fear are huge reasons that account for the loss of a large number of crypto investors as when the prices begin to go down, most weak-hearted investors tend to 'panic sell' at loss because they think they would lose all their money if they don't. Later, if the price pumps, they often regret their selling initially.

A good way to prevent selling at loss could be to first make sure you confide in the coin you are investing in and avoid investing in crypto with money needed for your livelihood. Also, you should try and avoid giving in to your emotions.

In conclusion, while developing a perfect crypto investment strategy could take time and practice, it is still necessary to note that in the crypto space, prices would always rise and fall...You just have to find a good way to leverage on that and choose what works best for you!


Thank you for taking the time to read this, kindly let me know what you think in the comments! :)

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Written by Β Β 20
1 week ago
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Comments

Oh I'm always panic and get excited when BCH will pump haha. Luckily I don't try it yet the Buy and sell I'm into swapping and farming now☺️. Crypto world needs a lot of patience and self control.

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1 week ago

Yes, yes... patience is key though. Glad you know that too!😁

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1 week ago

Yeah I've known patience a long time ago haha but on crypto I get easily excited making me swap or get the profits haha.

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1 week ago

Hehehe, I see πŸ˜…

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1 week ago